Five smart ways for a student to save money

Nothing is as best as having a savings account as a student. Building a saving culture right from being a student has a great way of helping you become financially independent when you get to the outside world.   

Learning to save the minutest amount from your allowances while in school trains you in financial discipline and it helps you from totally depending on your parent or guardian for all you need.  

Regardless of your educational level, that is, whether you are a secondary school student or you are in a tertiary institution, there is always a need for you to save.  

Do not underestimate the power of saving no matter how small because it is said that little drops of water make a mighty ocean.   

If you will like to begin to save as a student or you have been having thoughts of saving as a student but you don’t know the best way to go about it,  check out five ways that can help you save effectively.   

1. Automated savings   

One of the best ways you can save is by automating savings in your bank account.  This is such that whenever you get a credit alert, a certain percentage that you have agreed to save will be deducted automatically. You can do this by opening a savings account with your bank or making use of savings apps such as PiggyVest, Cowrywise, Kuda, Vestpay, Kolopay, TrueSaver, ALAT, F&K Savings, and so on.  

For students below the age of 18, different banks operating in Nigeria have teen accounts meant for children below the age of consent in order to encourage savings habits in teenagers and children.   

2. Work with a budget   

Since most students rely on their parents for allowances while in school,  they might not see the need to save or work with a budget since it is not their hard-earned money.   

To save as a student, you need to work and spend with a budget. You don’t just buy things because you have the money at hand. Learning to ask yourself if what you intend on getting is a necessity will help you save since sincerely answering this question will prevent you from getting things you don’t really need or that you can do without.   

3. Buy in bulk   

Getting things in bits as a student will not help you if you intend on saving. The rate at which the price of items keep rising on daily basis should be enough reason to make you decide to get all your essentials in bulk. When you buy in bulk, you are able to cut costs. Thus, you have extra money on you that can be saved.  

4. Avoid an extravagant lifestyle   

Some students, especially those in tertiary institutions want to show their financial capacity through extravagant lifestyles. They always want to get the dress, smartphones, jewellery, shoes, bags, in vogue.  

Even if your parents are so rich that you can spend as you like, their financial capacity should not debar you from having personal savings. Saving doesn’t mean you should deny yourself certain pleasures you desire. But it just shows that you are a thoughtful person who is concerned about securing your future.   

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5. Opening a spend-to-save account   

As a student, another way to save is by opening a spend-to-save account.  

A spend-to-save account refers to an account that allows you to automatically save small amounts of cash as you consume goods and services. It is an e-account that allows you to save a percentage of every withdrawal made on your account   

Opening a spend-to-save account as a student is a painless way to initiate a savings strategy if you struggle to save. 

Little drops of water make a mighty ocean. Cultivate a savings habit today as a student and guarantee yourself a future of financial independence.  

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