School day saving tips for students

Posted at 06/08/14 7:44 PM

(Editor's note: This article was written by MoneyMax, the Philippines’ foremost online platform for comparing financial and telecom products and services, for ABS-CBNnews.com. Find out more at MoneyMax.ph.)

MANILA - For most students, vacation is now over!

Some parents may have been cash-strapped because of tuition fees and back-to-school expenses. Add to that some home renovations to prepare for the rainy days. If you’re one of the lucky students who were able to enroll for this school year, then it’s your chance to start paying back the efforts of your parents and start practicing a frugal lifestyle and save money.

Perhaps you’ve heard your parents talk about saving for retirement and for annual holidays, summer vacations, or calamities. Don’t be fooled by what you get from eavesdropping, because your parents’ financial strategy should be different from yours.

Are you trying to find the perfect time for you to start saving? If you haven’t started yet, then the best time is now. Don’t wait for your graduation or your first paycheck. More so, you definitely don’t need to wait for a misfortune before you properly handle your finances and save up from your daily allowance.

Most financial experts say that there is no age too young to teach about money, so here are some pointers to help you with being financially intelligent:

Every centavo counts

Remember that in whatever transaction that involves money, be it a peso-worth SMS message, some few centavos short of change from the school canteen, or a 3000-peso expense from a Friday night hangout, remember to always know the difference between needs and wants. Make sure that you are not spending too much on unnecessary expenses.

Keep the piggy bank, but…

Having a piggy bank while you’re young is a good start to becoming money smart. When you begin saving, your goal must be to grow your savings so big that a plastic container can no longer hold it.
But it’s better to trust the bank rather than the piggy. You may continue with your practice of collecting your loose change, but eventually, you must learn to budget your money so you don’t always rely on a meager amount for your savings.

Aside from growing your money through interest, one of the best things about having a savings account is that you can easily monitor your transactions and your money. By tracking your financial activities, you can make an assessment of which life goals are within your reach.

You’ll be a grown up too

No matter how many times your parents tell you that you’ll always be daddy’s little girl or mommy’s boy, reality will push you out of that phase. It doesn’t mean that your relationship with your parents will change. It only means that you need to accept the fact that the financial support that you’re getting from your parents will end.

Someday you’ll earn your own money, pay for your own bills, and start your own family. When you’re in that stage, you must duly fulfill your obligations. Remember that most of your responsibilities as an adult largely involves personal financial management. Deal with easily in the future by instilling some basic saving practices.

Here’s an infographic to help Pinoy students save up from their daily allowances: