Managing money when you are studying is not easy. Student allowances and loans fall far short of covering student expenses and the short fall can be typically around $5-10,000 per year. The gap can be closed by taking a part time job, getting help from family, a bank overdraft, a low interest credit card and, in some cases, extra support from Studylink.
Careful money management is very important. Any income should first be allocated to financial commitments such as rent and shared flat expenses for food, power and phone. Next, set aside some income into a savings account to cover trips home, doctor and dentist bills, course costs and special occasions. Allow yourself a small amount each week for having fun and take this amount out in cash so you know exactly how much you have spent. The remaining amount of income can be used to pay for travel costs, clothing and extra food.
Here are some survival tips to help get you through the year:
Liz Koh is an Authorised Financial Adviser. The advice given here is general and does not constitute specific advice to any person. A disclosure statement can be obtained free of charge by calling 0800 273 847. For free eBooks, go to www.moneymax.co.nz and www.moneymaxcoach.com