Financial tips for children and teens, including students beginning tertiary education, starts with the parents. Children learn from the actions of their parents, so it is important to set good money habits early.
Children earning pocket money
If you are (or have) a child who earns pocket money or are given money as a gift from a relative, you can put aside that money for different purposes such as saving for something or buying something you want. Setting aside money for different purposes is the same budgeting strategy that should be used as you get older. This is an excellent way of teaching how children and students can learn how to manage their money. Scott Pape, bestselling author of The Barefoot Investor for Families (Link*), and Smart Money, Smart Kids: Raising the Next Generation to Win with Money by Dave Ramsey (Link*), are excellent resources for explaining how parents can teach their children about the value of money and how they can learn to budget effectively for financial success.
The remainder of this article covers budgeting strategies for students earning money primarily from a part-time or casual job.
Teens and students with a part time or casual job
If you are a college or university student, you may be receiving income from a part-time or casual job. A few common scenarios on managing finances will depend largely on your living arrangements. These include living at home with your parents or guardians, living in rental accommodation, or staying on campus.
Living arrangements
Your living arrangements can have a significant impact on your finances. In particular, your accommodation expenses including rent and utility costs can add up.
Living with parents or guardians
If you are a student living with your parents or guardians, you have an advantage in terms of managing your finances. Your expenses should be relatively low allowing you to save more. You should also have little to no debt, which will allow you to save for short and long term goals. This might include buying a car, saving for a property or building a stock portfolio.
Living in rental accommodation
Students living away from home in a rental property will have less money available for saving due to rental costs. If these costs are partly or fully paid for by parents or guardians, it will make money management easier. Becoming stricter with spending habits will ensure you can still save for short and long term goals.
It is common for students to live in share houses close to college or university. In this case, the rent and utility costs can be split between a few students to reduce their expenses. Other options for reducing living expenses include eating out less often and buying second-hand items.
Living on campus
Students living on campus often pay more for accommodation because they need to pay for a single room without the option of share accommodation. As with rental accommodation, being strict with spending habits and minimising non-essential expenses is the key to increasing savings potential.
More resources on financial tips for children and teens
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- The Barefoot Investor for Families by Scott Pape Link*
- Smart Money, Smart Kids: Raising the Next Generation to Win with Money by Dave Ramsey Link*
- Popular books on saving for children and students Link*
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