Windhoek-Although there is a growing realisation amongst most parents that they need to educate their children from a young age, there are still a substantial number of young people who are overwhelmed with the concepts of saving and budgeting.
“While it’s never too soon to educate yourself on financial wellness, it is also never too late. College and university students are perfectly positioned to begin educating themselves on financial wellness as they venture out into the world on their own and begin to manage their finances,” Standard Bank’s PR and communication manager Surihe Gaomas-Guchu advised this week.
She explained that financial issues are of the most commonly noted reasons students leave college. One of the best ways to increase student persistence is to increase students’ knowledge about financial issues. In the long term it allows them to have a better understanding of money and how to manage it when they finally join the workforce.
“Every student needs an objective budget that encompasses all potential income; this includes financial aid, student loans or any income for their parents or guardians, which is aimed at helping them during their studies. If they have jobs that will supplement their income then it should also be included,” she explained.
As a student, the day-to-day is more about studying and less about banking and to this effect Standard Bank offers specific solutions that speak to their needs to succeed in their academic life through the student-centric Pioneer Account.
Gaomas-Guchu states: “While understanding the hustle of being a student, the Pioneer Account comes with free benefits like prepaid airtime purchases, electricity purchases, 10 free cash withdrawals at any Standard Bank ATM, free cash deposits, free debit card purchases as well as free balance enquiries and mini statements to mention but a few.”
She also advised that it is important for students to create a spending plan which accounts for every penny that leaves their pocket, be it for food, public transport, books or clothes. The spending plan can be used alongside the budget to see if the student has a realistic view of how much is coming in and going out, as well as what they will have to cut out on their spending plan.
“Most students do not think about savings and it’s something for later in life, but they do need to save, even if it is a mere N$10 per day. It not only teaches discipline and acquaints one with the habit of saving for later in life, but it also allows for one to have something for a rainy day,” Gaomas-Guchu said.
She concluded that students should not be afraid to revisit their budgets and spending plan to adjust them as needed, and encouraged them to consult their nearest Standard Bank consultants for advice on navigating their finances.