I am a tertiary student: Practical tips for achieving financial independence

My journey to independence

As a tertiary student, I find myself in an exciting yet financially challenging phase of life. This newfound independence, while thrilling, comes with the responsibility of managing my personal finances effectively – often for the first time. I have realised that developing basic financial skills early on is crucial for my financial well-being, both now and in the future.

Understanding basic financial literacy

In school, I often notice my friends discussing financial management and investments. Feeling left out of these conversations due to my lack of financial literacy, I decided it was time to educate myself. I needed to learn how to track my spending, create a realistic budget, set aside money for emergencies, and even consider investing for the future.

Budgeting with limited savings

To get started, I turned to my friends for advice. They introduced me to budgeting apps, which allow me to easily track my daily spending and maintain a clear overview of my finances. By inputting my income and expenses, I get a better picture of where my money is going, helping me to make more informed financial decisions. These tools are also great for setting financial goals and monitoring my progress over time.

Building an emergency fund has become a top priority for me. Even with my limited income from part-time jobs and internships, I am working on setting aside a small portion of my earnings to create a safety net. My goal is to have enough savings to cover three to six months' worth of expenses, reserved strictly for genuine emergencies like medical bills or unforeseen school expenses. This fund gives me peace of mind, knowing I have something to fall back on if any unexpected situations arise.

Exploring investments and insurance

When it comes to investments, I am taking baby steps by learning about paper trading. This method allows me to practise buying and selling investments like stocks without using real money – helping me understand how the markets work without any financial risk. It is an excellent way to dip my toes into the world of investing before using actual funds.

Once I enter the working world and start earning an income, I hope to make use of the investment knowledge I am gaining now to start a real investment portfolio.

The same applies when it comes to insurance. I am aware that I need to be protected against unforeseen events, such as severe illness or disability from an unfortunate accident. I cannot wait to be able to do that when I can afford to, so that I can feel more secure.

Managing school expenses and tuition fees

As someone who comes from an average household, paying for tuition and other school expenses on my own is one of the biggest financial burdens I face. The pressure of covering these costs only adds to my financial stress. To help myself, I have been exploring different financial aid options.

I discovered that many institutions offer financial aid based on financial need or academic performance. I have made it a point to apply for as many scholarships, grants, and bursaries as I qualify for. I have also spent time researching external scholarships from organisations and government programmes. Applying early has been crucial, as it increases my chances of securing funding.

Conclusion

Despite these challenges, I am learning valuable lessons about financial management early in life. By using budgeting apps, practising with paper trading, creating an emergency fund, and seeking out financial aid, I am gaining more control over my finances and reducing some of the stress that comes with being a student

Through careful planning and smart money decisions, I am confident in overcoming the financial hurdles while focusing on my academic and personal growth during this pivotal stage of my life.

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