Financial freedom means having more power over your finances than the other way around. It secures one’s future, improves one’s quality of life, and brings peace of mind.
Financial freedom is crucial for students, as it will teach them the importance of saving, investing, and avoiding debt. They have been taught different subjects at school, but rarely emphasized the importance of managing their finances. The independence and personal growth they will gain will prepare them for a debt-free future.
Here are the saving habits students can build towards financial freedom:
Savings Account
Savings bankbook to track funds
Introduce bank accounts to children as young as seven as a way of teaching them how to save. A bankbook could help them track their funds with the assistance of their parents. The encouragement children feel upon seeing the increasing savings. However, parents should not forget to enlighten them about why saving for the future is crucial. This will help them build saving habits and understand financial responsibilities as they get older.
Budgeting
Allocate funds separately
All students should practice budgeting whether it is from their own allowances or salary from part-time jobs. Setting a certain amount for weekly expenses or even daily for their needs and wants is a great way to start weighing those two apart. Aside from those two, students should also learn to allocate their funds for savings, investments, non-essential expenses, personal development expenses, and even debt.
Part-time Jobs
Experience is also an investment
Let students gain experience working and earning a living by having a part-time job. Letting them acquire knowledge and wisdom from other workers in terms of the value of money, savings, and planning. Their awareness of their own self-development comes from their diligence and resilience. Although part-time jobs should not be just as a means of earning an extra allowance, but also a venue to improve the students’ interests and hobbies.
Surround yourself with friends with the same interest in saving
Find a trusted friend to correct and help you
Students having trusted same-age friends with the same values when it comes to money, savings, spending, and planning is a blessing. The support system they have can help them be accountable and responsible in managing their funds. These friends are not just there for fun; they plan with each other. The planning before every lunch date and night out—their personal budget from the price of the meal down to their fare home.
Delayed Gratification
Choose delayed gratification over instant gratification
Even when they are earning and getting closer to the goal of financial freedom, they need to be more disciplined and discerning about how and what to spend their funds. Although it is not bad to reward oneself after a long two weeks of juggling between studies and working. Aside from being disciplined, this will help students to build a better mindset for what they want in the future and to be more resilient against short-term temptations or challenges.
To have a debt-free future, students should start building their financial management skills to turn them into habits. The accumulation of these baby steps will be the foundation of their future financial freedom.
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