Budgeting guidance for students is significant since not all schools teach money management.
Whether you’re a parent reading this or a student, start the budgeting process before going to school.
Another point to consider is how many school districts may not have the budget as they once did.
The combination of pandemic pressures and fewer students may mean deep cuts for some districts.
“When budgets aren’t sufficient and when cuts have to be made, those who really suffer are children, and they tend to be the most vulnerable children that need the most supports,” said Teri Mooring, president of the B.C. Teachers’ Federation.
– CBC News
Money is an essential resource that any individual can possess at all times as it is for a business.
However, if money resources become inconsistent or incorrect, this results in budget failure.
It can pay for necessities like food and shelter or small leisures like ice cream.
Students Want To Learn How A Budget Works
Student budgeting has started to catch on because the cost of living in Canada is out of control.
What is needed the most is budgeting guidance, especially for students who have never used one before.
Unfortunately, some people lose track of their spending activities and become short on cash when it matters most.
Budgeting is crucial, especially for students who are most likely on a monthly allowance.
It’s necessary to plan and balance your finances as early as two months before school starts.
This is why I wanted to talk about simple Budgeting guidance for students, so it becomes a natural ritual.
It’s a ritual because budgeting basics work to incorporate a routine of money management.
Related: Follow my 10 Step Mini Budgeting Series to find out how we started our monthly budget.
What Is Your Weekly Income or Allowance Sources?
Firstly, a student needs to consider is how much money they earn in a week or month, regardless of their money source.
The number you will be working with is always your net income, which you bring home.
Leave the pre-tax income alone as that’s going to give you false hope and numbers.
If you are working part-time, you can be confident that you will get paid as long as you put in the effort.
On the other hand, people who get their allowance from their parents have to worry about their family’s expenses.
Budgeting Guidance For Allocating Funds
Where your money needs to go depends on your financial situation.
If you are attending college away from home, then you may have to worry about rent.
However, living with your parents makes you worry-free about your daily necessities.
Here are some things to consider as priorities for your savings, from most urgent to least.
Budgeting Guidance For Daily Expenses
Whether you have to worry about rent is situational, but your public transportation and food budget are constant.
Even if you can eat breakfast and dinner at home, you also need to worry about lunch and snacks at school.
It would help if you also kept a few extra paper bills in case of seeing something you like out of the blue or needing a few more coins for a sandwich.
Of course, daily expenses do not include your leisure like playing online slots, RPGs, and trying out other types of betting, even in the minuscule amounts.
No matter how affordable they are, these still factor in your whole budget in the long run.
Saving For Your Future Goals
For students, it is only a matter of time before they either have to move out and seek opportunities in another city.
It would help if you thought about practicality and comfort before worrying about having an impressive flat for guests.
Another idea worth pondering on is owning a car.
- You may want to invest in a utility vehicle for the family or an impressive ride for friends and peers.
- Use your current income as investments that could give you more money.
- You could run a business, participate in the trading of assets, or invest in stocks.
Granted, all of these activities need intensive research and careful studying on top of your school activities.
You will need to spend time and money, but the result is always rewarding.
If you are in high school, you should already start planning which industry you plan to join.
There is only so much that your daily teenage wage and allowance can pay for your tuition, but your savings can help make it more manageable.
Even if you can’t pay the monthly fees, you can at least pay for your necessities like a laptop/desktop, industry-standard equipment, and more.
Electronic Devices For Budget Guidance
Speaking of devices, computers, laptops, tablets, and mobile phones are essential in any industry.
As a guy who has lived in Canada for over 12 years with no mobile phone, my employer suggested I get one.
I went as cheap as I could and chose Freedom Mobile and paid $19.00 a month WITH DATA!
My mobile phone was a hand-me-down from Mrs. CBB, which didn’t bother me.
All I cared about was that it worked for what I needed it to do.
The quality of the hardware you need may not be necessary to most industries that only need to operate office-centric programs like Microsoft Office.
If you plan to be in the entertainment or software industry, you need a unit to support robust programs.
There are also sound mixers and recording devices needed by aspiring musicians and voice actors.
If you wish to be an athlete, it is best to invest in high-grade apparel to avoid injuries and discomfort and ensure its endurance for years.
There’s also a gym membership to pay for so you can stay in competitive form.
Budgeting Guidance For Hobbies And Leisure Activities
Even if you don’t plan on developing games or making movies, you may still want to own a robust system.
Video games are trendy right now for all demographics.
You can get a game console or a PC.
You may also get the best tablet or smartphone in the market to better experience watching movies or playing mobile games.
Being a collector might be the most expensive hobby that anyone can have.
It involves seeking valuable items in a niche, whether it is pop culture or craftsmanship related.
The most coveted objects are always expensive as it is also sought after by like-minded people.
Your budget for leisure should be the least of your priorities.
Wealthy People May Spend More Money
Adults can have more money for wants than needs.
For this reason, they can afford various luxuries like taking vacations, fancy clothes and current trends.
Unfortunately, such opportunities restrict students who have bank loans and other debt.
That is why they are more in need of budgeting tips than adults.
Overall budgeting guidance that I can offer is in my Budget Category on the blog or in the three links below.
Other Budgeting Guidance Posts on CBB
Start Here if you’re looking for more budgeting guidance.
- Mr.CBB’s 10 Step Budgeting Series
- Budgeting from A to Z
- Get my free Budget download in excel or paper and pen
- How To Create a student budget for students