The hurdles of saving and budgeting of a student

Budgeting and saving money during academic pursuits is crucial for students. By managing their finances responsibly, they not only avoid debt and financial crises but also gain valuable life skills.

Budgeting and saving enables students to build a safety net for unexpected expenses or emergencies and work towards long-term financial goals. Additionally, it allows students to allocate funds towards discretionary spending, which includes non-essential activities like entertainment, hobbies, or leisure activities. These practices can significantly impact a student's financial well-being, both in the present and future.

This blog discusses three examples of students and how they saved money by budgeting. Student A, Student B and Student X.

Hopefully, by examining the examples of students A, B, and X, you can gain valuable insights into how to effectively save money for yourself, as well as understand some of the common struggles faced by other students in doing so.

Student A

The first student, Student A, lives at home and is given 300 KSH, 200 KSH of which is for transportation and 100 KSH for lunch. After analyzing his spending habits, it was discovered that spending 100 KSH on lunch was excessive, as the standard cost for lunch at small food shops is 30 KSH. Thus, it was advised that he spend the least amount possible, depending on the circumstances.

If the small food shops didn't serve what he liked, he would find an alternative with a maximum cost of 50 KSH. Alternatively, since he lived at home, he could have a heavy breakfast and not need to spend on lunch money. He eventually decided to fast for lunch and eat a heavy breakfast.

For transportation in the morning, he needed to board three cars.The first two cars cost 30 KSH, while the third cost 70 KSH and left him at the school gate. To return home, it cost 20 KSH to get to town and a maximum of 70 KSH to get home.

In the morning, there was another route to town directly for 60 KSH and then another car to Fig Tree for 50 KSH, which was quite expensive but the fastest way. He chose the first option of boarding three cars.

After deliberation, it was discovered that if he woke up early, he could compensate for the time and walk to the third bus stage. The 70 KSH in the morning was non-negotiable, so saving 30 KSH in the morning was essential.

To go back home, another route was discovered instead of going to town. It cost 30 KSH to get to one bus stage and then 50 KSH for the second stage to get home. He found that the walking distance was not long and chose to walk and save the 50 KSH. Overall, by analyzing his spending habits and finding alternative transportation routes, Student A was able to save money and budget effectively.

Student B

This section discusses about student B.The challenges faced by a student living in a hostel who was given a limited amount of money for a week. The student found that the amount provided was insufficient to cover their daily expenses, prompting them to take steps to manage their budget.

The first step involved informing their parents that the minimum amount required to cover basic expenses in Ngara was 100 Ksh per day. This helped to create a better understanding of the student's financial constraints.

Next, the student searched for an alternative option for lunch that was both affordable and met their dietary needs. They found a small food vendor at Figtree that served a filling meal of rice, cabbage, potatoes, and stew for 60 Ksh. This allowed the student to save 40 Ksh per day by sticking to this food option.

However, the student struggled with impulsive buying habits, which made it difficult to stick to a budget. To overcome this challenge, they budgeted their expenses and tracked their spending. The total amount of money received for the week was 700 Ksh, with lunch expenses accounting for 300 Ksh for 5 days (since the hostel provided food on weekends). This allowed the student to save 400 Ksh.

To further manage impulsive spending, the student divided their savings between two platforms - 200 Ksh was saved on Mali and 200 Ksh was saved on Mshwari. They made a rule that the savings were only to be used in extreme emergencies and not for wants.

In summary, by taking these steps, the student was able to manage their expenses more effectively and save money. This approach could be helpful for other students who are facing similar financial challenges.

Student X

In terms of financial management, Student X is quite adept, relying on HELB to cover his living expenses. However, his one weakness lies in his tendency to gamble, resulting in him losing substantial amounts of money that would have been better spent elsewhere. Additionally, his friends' knowledge of his financial situation often led to them borrowing large sums of money from him, with no intention of ever paying it back.

Despite his reluctance to completely give up gambling, Student X came up with a plan to curb his losses. He resolved to limit himself to betting only 100 Ksh per week, with any winnings going straight back into his betting fund. This ensured that he did not compromise his finances in pursuit of his hobby.

As for his friends' borrowing habits, Student X decided that he would no longer be a lending source for them. If it was absolutely necessary, he would only give out small, easily repayable amounts that would not hurt him financially if they were not paid back. This resolution ensured that he would not be taken advantage of in the future.