20 money-saving tips for students

If you are a college student, cashlessness is a perpetual state of existence. Short on funds and craving for pleasurable pursuits, you have two options. Resign to your impoverished status, or go through the 20 pointers we have compiled for you. These will not only help you save and manage your money better, but also tell you how to make some on your own. Go on, read them-and have 20 times more fun.

MANAGING YOUR MONEY

1. Make A Monthly Budget: This doesn't have to be a complicated number-crunching exercise. A simple Excel sheet or the planner in your mobile will suffice. The idea is to keep track of your monthly expenses and plug any unnecessary spending. Start by listing your fixed expenditure like transportation cost, food, etc, and keep aside money for these. The balance can then be used for discretionary expenses like shopping, gifting or partying.

2. Plan Your Purchases: Has the Rs 1,000 spent on a dress for freshers' night left you broke? Simple mathematics and a bit of planning could have helped you avoid the situation. Cutting down your expenses by Rs 250 every month would have saved you Rs 1,000 in just four months and made the dress affordable. Planning ahead is an easy way to prevent bankruptcy.



3. Fund For Emergencies Or Opportunities: "Since students don't have a steady source of income, it is a must to have a fund for situations that might require some quick cash," says financial adviser Rohit Sarin. Rather than borrowing from friends, making small adjustments, such as skipping a movie at the multiplex or ordering pizzas less often, can help you prepare for both opportunities and crises.

4. Select A Good Savings Account: Rather than going for a regular bank deposit, look at products specifically designed for students. Apart from the zero-balance facility and regular freebies, students' savings accounts have other benefits which make them better than a no-frills account. For instance, free demand drafts for paying examination fee or buying application forms are offered to student account holders of Punjab National Bank, Corporation Bank and State Bank of India. Punjab National Bank also provides an overdraft facility, Maharashtra Bank offers free assistance in sending applications to universities abroad and you can get concessional educational loans if your account is with Vijaya Bank.

5. Avoid Debt: If you have to swipe, use a debit card. "Unlike credit cards, there is no interest or late-payment charge in the case of a debit card, so there is no danger of stacking up a debt. It will also help instill financial discipline if you spend only what you have," says Sarin.

6. Prepay Mobile Expenses: Choose a prepaid plan to avoid ugly surprises at the end of each month. You can also customise to make the plan cheaper. So if your calls don't last more than a few seconds, get a pay-per-second plan, or if you are an SMS addict, add a message card to make them free.

7. Use Free ATMs: After the first five transactions in a month, you are charged Rs 20 per cash withdrawal if you are operating an ATM outside your bank's network. So, regular withdrawals from ATMs outside the surcharge-free network can be expensive. Avoid them.

8. Insurance? Not Required: Since students don't have any earning to protect or dependants to take care of, they don't need any cover, says Sarin. Also, in case of a medical emergency, you have your dependent card to fall back upon. An insurance policy is useless, unless you have a loan to return.

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