Students Who Spend Lavishly Don’t Understand Personal Finance

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spending habit

Barely a month Judith returned to school after two weeks of holiday, she called her mother to request for airtime to recharge her smartphone. As expected, her mother frowned at her request. She was not happy how fast she exhausted her monthly airtime plan.

An incident like this is very common among undergraduates who are often not vey frugal with their spending.   To encourage students to be frugal with their money, here are some of the things they shouldn’t spend money on:

Electronic Appliances

This is a common notion amongst young people. They want to get the most excellent sound systems to decorate their apartment. It is good to furnish your flat, but there is always a better option.

Get a smartphone. There is nothing you cannot do with a smartphone. You hear music or watch videos when you buy electronics or sound systems. Your smartphone can serve you. You can view any video on your smartphone. If you want to upgrade, get a laptop.

Expensive Clothing

There is no point spending a lot of clothes. You need clothes to put on, there is no doubt about, but there should be moderation. I had an experience while in school. We needed to do some presentations in class, and some of the friends spent a lot in getting their suit ready. I didn’t bother myself doing that, and I wasn’t looking bad either.

I wasn’t intimidated by the suit some friends wore, what was important to me at that point was the presentation. At the end of the tunnel, some of my friends who wore the most exquisite suit flopped. So, the suit didn’t matter.

Further, if Mr. Akin buys cloth worth N15k for instance, it is still possible to get that same cloth at a cheaper rate. Always look out for alternatives and stop spending a lot buying cloth.

Mobility

The cost of fuel, diesel, car insurance is astronomical. The repair of cars cost a lot of money, and I doubt if a student could afford that. It is not even advisable in the first instance. Other people from influential background could get a car, YES. But you don’t need it.

It is better to look for business opportunities that would earn you money or buy a landed property. The money you use to get the car would fetch you a landed property that will value that amount in fifteen folds in 10 years.

There are better days ahead, invest the money and drive the best cars tomorrow.