Tips for managing personal finance at a boarding school

I am in the fourth year of my Boarding School life. Ever since the day I arrived at my hostel, I have been keenly observing and learning from the various patterns and ways in which kids around me are managing their personal accounts. Has it ever intrigued you, why some students are always asking around to borrow money from their friends, while there are others who always seem to have “some extra bucks” handy? Is it simply because the latter have “richer” parents giving them more pocket money or is it because they handle their money better than other students? Having been close to all these kids around me for four years straight now, I can safely vouch for the second explanation. Let me tell you why.

How do smart kids handle money better? Some tips!

1). Smart kids do not use their pocket money as a tool to “show-off”. At a boarding school, those of you who have had the experience would agree, there exists a "type" of students who like to throw money to buy treats for friends in their desire of gaining popularity. I noticed that these smart kids restrain from doing such acts, and instead make friends by spending quality time (instead of money) with them and helping them in times of need.

2). The smart kids ALWAYS make a budget. They write it down and by doing this, they are able to immediate curb any extra expenses. They have a visual picture of their exact financial position at any given point of time, which helps them plan their spending better. This habit of writing down their spendings and savings, helps them make optimum use of the money they have.

3). There is an enthusiasm in these kids to talk and learn more about financial literacy. They like to seek replies to their queries on topics like investments, loans, and the like. Hence, their quest for more awareness on learning ways to manage money shows the importance they give to right spending and earning in life.

4). The thumb rule of being smart at managing your finances at a boarding school is to AVOID being in debt in the first place. I have noticed that spendthrifts often fall into this vicious circle of debts with their friends, the canteen person and the stationery person which causes a lot of embarrassment each time they actually need to purchase something urgent. This also sometimes leads to friends moving away from them gradually. So, my suggestion to all the boarding school students is to stay away from borrowing from a friend in the first place. In case of any emergency, even if some amount has to be borrowed, it must be returned at the very first opportunity and debts should be avoided immediately after that.

5). Smart kids also manage their diet-plan well and avoid unnecessary expenditure on frequent ordering food from outside. I have observed that some students are excellent in managing what they eat and hence, they stay healthier. These students refrain from ordering junk and prefer spending money on getting fruits. They have linked their outings to treats they wish to give themselves only after achieving something, no matter how big or small.

6). Plan for the future. As high school students, it becomes imperative to start planning your finances for higher studies. One must explore all funding options to be able to study one’s favorite subjects at university and plan the expenses accordingly.

I hope that all the Boarding Students find the above tips useful. I have surely learned a lot from observing and have been able to manage my personal finances better over time. As high school students, managing your personal finances is crucial as these habits will be stepping stones for you, when you enter your college lives.