As MHS students gradually transition into independent lives and adulthood, it is important to consider the importance of money and the value it has in our daily lives. However, taking that next step into adulthood can be difficult, so here are a few helpful tips on how students can manage their money.
Set a budget – Setting a budget is an extremely important step for not overspending. A budget will provide you with a certain amount that you should not surpass while making your daily purchases. Make sure your budget is reasonable for how much you spend and make, and be sure to stick to this budget, as not being strict with it will lead to a decline in your savings. Additionally, when you see something in a store, take a second to really think about the purchase before buying and consider what purpose it will serve once you purchase it.
Check different retailers – When you find an item that you are planning to purchase, consider different retailers, even thrift shops, as they will likely sell the same item at varying prices. One retailer may be drastically more expensive than another. However, be on the lookout for quality and fraudulent sellers. Something too cheap is likely a scam. If it seems too good to be true, it probably is.
Time the purchase – If you plan to buy something, try to time the purchase so that you are buying at a time with the lowest price. However, be sure to only buy things that you need, not simply because the price is low. Buying things at low prices may seem like a great deal at the time, but if you buy an item on impulse and don’t use it, it is ultimately still a waste of money.
Use credit rather than cash – You will accumulate more money by putting more money into a bank account due to interest. The more money in your account, the more money you get back from the interest rate your bank offers. Therefore, it is better to leave cash in that account and use credit when spending. It is also inconvenient to carry around large amounts of cash. It is okay to make small purchases with cash, but for larger purchases, it is preferable to use credit. But remember, credit is still money that you will need to pay back on time. It is useful to pay your credit in full because it shows that you are not taking advantage of your credit card, which will help you avoid interest payments as well as increase your credit score.
Cook at home – Cooking at home, although more time-consuming, will save you lots of money. Buying groceries is far less expensive than buying something from a restaurant and if you shop with health in mind, your meals will be better for you compared to meals from restaurants and fast food places. Cooking is also a very good skill to have in life, so this method of saving money can assist in more ways than one.
Cut down on coffee and tea – Yes, these beverages are popular, but also costly in the long run. For example, spending $5 a day for a coffee will result in about $155 per month and $1,860 per year. Reducing the intake of beverages like, or even making these drinks at home, will ultimately save you a lot of money.