It’s never too early to learn how to manage your money. Whether you’re receiving an allowance from your parents, trying to budget your scholarship funds, or waiting for your paycheck as a working student, it’s important that you know where your money is going and if you are in control of your expenses.

If you develop good spending habits now, you will find it easier to manage your money once you graduate from college. The most important lesson you can learn is this: Your expenses should never exceed your income.

Know where your money is coming from
Always know how much you have right now so that you don’t spend beyond what you have. Keep track of how much you expect to receive, where the money will come from, and when you will receive it.

This will help you budget and schedule your expenses so that you don’t end up trying to stretch your last P100 over the next five days, or until your next allowance or paycheck comes in.

Set goals
Identify your short-term (at least one-year), medium-term (within five years) and long-term (more than five years) goals. This way, you can plan how much money you need to set aside to make your goals come true.

Big payments like next semester’s tuition, a new computer, or a three-day vacation in Boracay require more planning, more saving, and more sacrifices.

Cut down on spending
Many things seem cheap but it’s amazing how much they actually cost over a period of time.

A bottle of water may only be P12, but you can save P240/month if you bring your water container from home.

A pack of cigarettes may only cost you P30/day, but if you use up five to seven packs a week, that’s already P150 to P210/week, or P600 to P840/month.

If you order a cup of coffee everyday worth P125, you are actually spending P625/week, or P2,500/month. Cutting down on spending will result in more savings for you, and help you pay for your goals faster.

Watch out for hidden costs
Avoid ruining your budget by avoiding unnecessary charges. Remember that late payments often result in the payment of additional fees. The library will fine you for returning books after the due date. The bank will charge you a fee if your account goes below the required maintaining balance. The credit card company will charge you late fees and finance charges if you don’t pay your account in full. These kinds of expenses are unnecessary and could have been avoided with a little care on your part.

“I can save more money by spending less on…”
- Clothes
- Transportation
- Movies
- Concerts and other gimiks
- Toys and other electronic gadgets
- Internet and telecommunications
- Eating out with my friends
- Beauty treatments and products

photo: www.stockxpert.com