What students should do with their holiday pay
Bank suggests the following basic tips to help you save your hard-earned cash ...
As we face tough economic times, students across the world make efforts to get themselves part-time jobs to help ease the financial burden on their parents.
According to Himal Parbhoo, CEO FNB Retail Cash Investments, there are four things they need to consider. He said, “It’s often a good idea to find temporary employment while completing your studies. It builds character and will help you when you eventually start working permanently.
“Depending on your current situation and goals, the money earned can be used to finance your studies or help pay off your student loan, fund a holiday or even go towards your longer-term goals like the deposits for a car or your first house.”
Parbhoo suggested the following basic tips to help you save your hard-earned cash:
1. Set your savings goal:
Deciding to work over the holiday period is a great step in managing and growing your financial independence. This money could be used for a holiday at the end of the year, assist with expenses, accommodation, transport or could be saved for long-term goals like your retirement or an investment vehicle. Whatever your goal, ensure that you stick to your savings strategy and not default at any stage.
2. Open a savings or an investment account:
It’s a good idea to put the money you earned in a savings or an investment account. Look at account options and the interest rates to ensure that this account works best for your needs and savings goals.
3. Cut unnecessary expenses:
Review your monthly spending by listing all your expenses in a budget, and identify where you can cut expenses that you don’t need and rather focus on the things that matter. Less spending means more savings that you can put in your pocket.
4. Set monthly targets:
This should be an ongoing process with the aim of settling small debt and expenses as soon as you can.
“Working during your holidays can help you save more towards your goals. What’s most important is to start planning early and ensure that your savings plan is adhered to,” concluded Himal.
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