Budgeting is the cornerstone of financial planning; building this habit as a student can help your child in the long run.
If you are planning to send your child abroad or to a different city to pursue their higher education, then here is an article you must share on how to save money every month as a student with your child and your friends!
8 tips to save money as a student
The public image of a student is always of a broke kid struggling to make ends meet. Most kids fail to save every month without budgeting, poor planning, and making impulse decisions.
To avoid falling into this trap, all you and your child needs is a monthly budget. Let’s look at some easy tips that your child can use to save money every month.
- Monthly Budget: Having a budget and sticking to it is extremely important as a student. If you give Rs. 20,000 to your child for monthly expenses, then make sure they prioritize their bills and needs above everything else. The amount left can go towards luxuries, outings, savings, or investing. This will not only help them learn the importance of spending but also build a great habit of keeping track of their expenditures.
- Crisis Funds: We live in unstable times where an emergency can consume all your family savings. You should create a crisis fund for your child to prepare for these emergencies. Please encourage them to put some money towards this fund every month. This will keep them secure for a few days or months, depending on the amount they have saved.
- Shared Accommodation: Living alone can be fun, but it is also costly. A secure way to save money as a student is to opt for sharing accommodation or on-campus dorms so your child can save money and use it for other purposes.
- Borrowed Books: Borrowing college books is another way to save money as a student every month. College books can be heavy on the pocket, and your child may have to buy different books for classes/courses for a short while, like 6 –7 months. So, to save money, it’s better to borrow these books from your seniors or the library rather than spending thousands of rupees on a single book.
- Part-time Jobs: Many countries allow students to work part-time during the semester to pay for their daily expenses. This is a brilliant way to make money as a student. If your child is studying abroad, taking a part-time job can help them become more independent and disciplined. Please encourage them to find employment in their field.
- Homemade food: A sure-shot way to save money as a student is to eat out less and make homemade food. It is a cheap alternative as restaurant food can be expensive, especially in foreign countries.
- Student Discounts: Brands like Adidas, Spotify, Netflix, and many more companies offer student discounts. All you need is to provide a student ID to avail the benefits and save money as a student!
- Investing: The best tip for saving money every month as a student is to invest a small amount in your chosen fund. Whether it’s Rs. 100 or 500, start investing this amount monthly, and watch the funds grow to new heights. Many funds have SIPs starting as low as Rs. 100 to encourage new investors to enter the market and reap its benefits in the long run.
Consult an expert advisor to get the right plan
FAQ
How to save money as a student in India?
The best way to save money as a student in India is to create a monthly budget and follow it regularly. Another way to save is to develop skills that you can use to generate an income or get a part-time job to cover your daily expenses.
Try to follow the investment rule of 50-30-20. 50% of your income should go towards your needs and paying bills, 30% towards wants and luxuries, and 20% should be used for investing and saving for the future.
How can a teenager save money in India?
There are many ways to become financially independent teenagers in India. You can save money by avoiding EMIs, and impulse purchases like buying the new iPhone and taking up part-time jobs or paid internships to gain better skills.
As a teenager, saving money and building your skills are better.
Is saving Rs. 1000 a month as a student good?
Saving any amount is excellent for a student. Try to invest a portion of this money towards funds regularly to ensure you reap the benefits of compounding.
You can start investing with as little as Rs. 100 or 500!
These tips on saving money every month as a student can help you instill a good habit of saving and investing in your child from a young age. Help them learn the value of money and encourage them to be careful with their expenses.
