Managing Your Bursary Funds – Tips for Students
When students attend university for the first time, they are often faced with a brand new experience of handling their finances and learning to be financially responsible.
Financial literacy is when one has specific skills and knowledge which allows them to make calculated decisions relating to their financial decisions. Financial literacy is the act of spending your finances on essentials (needs) before non-essentials (wants).
When one gets a bursary, they often get a lump sum of money and are then faced with the task of independently handling this large investment. Students must understand that a bursary award is ONLY for student/ education-related expenses and must be utilised properly.
Receiving a bursary should not be challenging or scary, but rather an exciting time and an opportunity to learn to become financially savvy! To achieve this, ensure that you avoid the following financial mistakes relating to bursary money:
Student Budgeting Tips – how to make your sure your Bursary Funds last
Avoid purchasing unnecessary groceries and eating out too often
It is a wonderful experience to know that once you are in university, you are independent and can buy what you want without mom or dad saying, “you can’t have take-out, there’s food in the fridge.” This may be a great time to explore your talents within the kitchen as you try new recipes that you like, but be sure not to overdo them.
It is okay to treat yourself every so often, but simple food is okay too (and will help the pocket!) The same applies to eating out and ordering in. These are expensive activities and should be done in moderation.
Don’t rent an expensive apartment
This aspect will require you to be very honest with yourself. Before moving into a place of your own, you need to calculate your rental budget. Don’t fall into the trap of getting mesmerised by an apartment with all the “bells and whistles” that is beyond your budget.
The trick is to live within your means and more so, live like a student. There are many affordable bachelor pads, apartments, and even house shares that could easily help you save and afford to enjoy other aspects of your life.
Live within your budget
Considering that many students have a limited means of income, it is imperative that you often compare your needs to your wants. Do you NEED to get an expensive latte every day? Do you NEED to shop online once a week?
Whilst it is important to treat yourself, it should be exactly that – a TREAT. That means it happens once in a while and not regularly. If you are craving that morning latte to get your day going, consider buying less expensive items or even buying a kettle and making your own, unique concoction. In doing this you can still make a budget and be disciplined while having fun!
Spend on your needs before your wants
This aspect links up with the previous one but is just as important. Most students fail to differentiate between wants and needs and spend most of their money on their wants whilst not having any for the things they need (i.e. books, tuition, travel expenses, etc).
One may require a break but may also desire a trip to another province – the first is understandable and needed to avoid burnout, but the second is discretionary and may break the budget. Understanding the difference is essential and will aid in developing healthy spending habits.
Don’t use bursary money for family responsibility
It is understandable that no one wants to see their family struggle, and would do everything they can to help lighten the load, but one should never use their bursary money to do this. Bursary money is for educational and varsity-related expenses e.g. rent, textbooks, utilities, groceries, etc. Your bursary funds should not be used for family financial responsibilities such as helping extended family, paying rent, loans, etc.
To avoid this, you must create boundaries if you find yourself in situations where your family may be pressuring you to take on that responsibility.
Don’t compete with friends or give in to the pressure
Sometimes, there may be pressure to keep up with your friends and in doing that, you may spend more than you can afford. It is important to avoid peer pressure whilst shopping and only spend as per your monthly means- remember: you are NOT required to keep up with your friends
If you tackle all the above aspects, you will have a better handle on your money and avoid financial mismanagement traps. The overall takeaway from this article is that being financially savvy is important and will further aid you in succeeding in your financial management journey!
** TIPS & ARTICLES **
Read our top tips on submitting your bursary application for the best chance of success.
Read our tips on how to write a bursary motivational letter here.
Read about how to prepare for a bursary interview here here.
Read about the various ways to get free education in South Africa.
Read about the Public vs Private Higher Education Institutions and which to choose.
Read about the National Benchmark Test (NBT) for University Entrance.
Are you following us on social media? We post our latest bursary opportunities and reminders of bursaries closing soon on Facebook, Twitter and Instagram.
