Developing financial literacy skills is essential for you to have a better quality of life during your undergraduate studies. Through this, you have the opportunity to understand the need to save some money, especially during a period when there are naturally more challenges.
In addition, you have the possibility of controlling your expenses and evaluating strategies to increase your earnings, whether with a paid internship or with a job that will guarantee extra income.
With this in mind, we have prepared this material to answer your questions about some simple financial education practices that can be adopted to manage your money intelligently. Check it out!
Count on financial planning
The first step is to incorporate financial planning into your routine. To do this, you can adopt some strategies. First of all, identify your financial situation, your monthly expenses, and your monthly income.
From there, identify all costs, whether fixed or variable. Fixed costs, as the name suggests, are those that do not vary from one month to the next. Rent is an example. Grocery shopping can be included in variable costs.
Next, understand which expenses can be reduced. There is even the possibility of changing fixed expenses. Internet and TV plan: if you evaluate and realize that you hardly use any of the extra channels you have contracted, you can opt for a change.
Financial education also includes having an emergency fund and using technology to your advantage. There are many apps that help you control your spending more accurately and analyze the areas in which you consume the most, so that you can more easily cut out unnecessary items.
Keep track of your expenses
Speaking of expense control, it is important to have a topic dedicated to this strategy. The most essential thing is to have everything written down. Only by knowing what you spend every month will it be possible to organize your costs more effectively and understand what can and cannot be discarded.
The next step is to organize your expenses by category. For example, let’s say that in your notes you identified that you spend R$70 per month on college supplies, R$200 on transportation, R$50 on snacks during class breaks, and R$50 set aside for any additional expenses that may arise.
This way, the R$200 for transportation can be allocated to the rest of your expenses for this purpose, whether it’s for meeting up with friends on the weekends or seeing your parents if you don’t live with them. The rest can be included in the university category, since it’s all related to your studies.
This way, at the end of the month, you will have a clear understanding of the main areas that consume expenses and what cuts can be made.
Look for additional income generation
While you are in college, we also recommend that you look for additional income. This will give you more opportunities to achieve your financial goals, pay off debts (if you have any), and help you achieve your goals.
Often, some dreams during college can be momentarily put on hold due to finances, such as taking a trip or buying your own car.
However, when you have financial education and invest in activities that can bring you greater income, there is a good chance that you will achieve much of what you desire. Some ideas on what you can do to earn extra income during your undergraduate studies are:
- online resale of products: always remember that it is important to understand the niche of people you want to reach and to have effective marketing actions also on social networks to expand your audience;
- beauty products: even at college you can invest in selling cosmetics to colleagues;
- Food: Many people choose to sell sweets, cakes or natural sandwiches at colleges. This way, they can offer a quality product to their colleagues while earning extra income;
- offer tutoring for subjects you are good at, which can increase your professional contacts .
Use your credit card responsibly
Credit cards should be used responsibly. It is important to remember that they are an important ally in difficult times, but they can turn into a snowball effect if the consumer does not exercise control.
To do this, you can follow some financial education tips. Use a single card so that you have a more accurate understanding of your expenses. In addition, set a limit that is compatible with your income and do not exceed it throughout the month.
One tip is to prefer to pay in cash. If you pay in installments, you are at a higher risk of getting into debt. Finally, avoid lending credit cards as much as possible, even if the person is trustworthy. This habit can harm your financial health and compromise your planning if you do not make the payment for some reason.
Make a plan for the future
You are in a period of many changes in your life. It is a time to discover your career, start your first internship and have the opportunity to start your financial life from scratch. Therefore, always think about the future.
If you manage to get a paying job, manage your money well , assess your real needs and choose an emergency fund. This way, the chances of any eventuality compromising your entire income will be considerably reduced, so that you can achieve your goals more effectively.
So, what do you think about learning a little more about the financial education tips we’ve brought you here? As we’ve seen, this is an important measure for you to have a better quality of life throughout the course, which can even positively impact your grades and academic performance.