Students need to spend their money carefully like everybody, especially if they depend on student loans to meet their expenses. There is only a limited amount at their disposal. Hence, they can’t naturally afford to spend more than they have got. The money they have got to spend is borrowed, not earned


Hence students should aim to live carefully using the official student loan, any money from parents, and some, but not all, of the 0% overdraft from the bank or other borrowing. Although, the overdraft is 0% now, it has to be repaid later, and most likely at a commercial rate of interest. If they overspend, they will have to borrow again causing them financial hardships in their future life.

However, there are a number of basic steps to ensure you don’t get into money trouble:

Pick the top student bank account: Don’t just use the bank located at your university or the one you had your account with in your teens. Scout around for the best student loans, which are issued or approved by government agencies. And be careful if you deal with typical commercial banks. They are more eager to make some money out of you than helping you with the loan.

Budget: Everyone needs to budget, by planning their spending. The same is more important for the student, especially if their living off student loans. Making a budget and strictly adhering to it gives them control of their expenditure and ensures they are not left without cash.

Think before you spend: Before you buy anything think a while whether you need it, and whether it is within you means. If it is necessary to buy, then check if the same product is available cheaper elsewhere.

Partying costs: For many students, partying is part of the lifestyle. There’s nothing wrong with spending on partying, just ensure you budget for it, like everything else in life.


Postpone self-indulgence: Many students feel an urge to go on a spending spree when the loan cash arrives. But when they do it at the beginning of the term, it will leave them short of money and struggling towards the end of the term. Hence, the grand spending should be postponed to done at the end of the term with the balance amount after you have carefully managed your money.

Student card and discounts: Many shops and establishment provide discounts for students. Hence, try to use your student cards where ever it is possible; for traveling, in shops or restaurants.

Get a job: It has become an accepted practice for students to do part time jobs if they are short of cash. It is much better than borrowing. Try to reach your place of study before other students and try for a job as soon as arrive. This will enable you to get a better job.