Guide in Managing Finances

( Personal Finance)
Janice Rhea P. Cabacungan,
Ph.D
Faculty, DMMMSU-SLUC

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SOME PROBLEMS OF A COLLEGE STUDENT

What is Financial
Management?

Finance - Money

Management act of
controlling and organizing the
activities of the organization

What is Financial
Management?

refers to the efficient and effective

management of money (funds) in such a
manner as to accomplish the objectives of
the organization.
INDIVIDUAL/PRIVATE
FINANCE

PERSONAL
FINANCE

What is Financial
Management?

refers to the efficient and effective

management of money (funds) in such a
manner as to accomplish the objectives of
the organization.
INDIVIDUAL/PRIVATE
FINANCE

PERSONAL
FINANCE

What is PERSONAL
FINANCE?
is
thefinancial
managementwhich an individual
or
a
family
unit
performs
tobudget,
save,
and
spend
monetary resources over time,
taking
into
account
various
financial risks and future life
events.

Money Management Tips

1. Set up a budget
Budget ?
?
The first step to taking control
of your finances is doing a
budget. It will take a little
effort, but its a great way to
get a quick snapshot of the
money you have coming in
and going out.

Plan or
allocation on
how you are
going to use
your money

Setting up a budget means youre:

Less likely to end up in debt
Less likely to get caught out by
unexpected costs
More likely to have a good credit
rating
Able to spot areas where you can
make savings

How to set up a budget?

To get started on your budget,
youll need to work out how much
you spend on:
Learn how to manage your money
better with a Budget planner

Household bills (utilities)

Living costs (Foods, clothing.)
Financial products (insurance)
Family and friends (presents)
Travel (car costs, public transport)
Leisure (holidays, sport, restaurants)

 In a Budget planner
grab as much
information as you can
about your money and
spending. You can even
save your information
and come back to it
anytime you like.
Alternatively, you can
set up a budget using a
spreadsheet or just
write it all down on
paper/small
notebook.

2. Getting your budget back on track

If youre spending more than you have

coming in, you need to work out where

you can cut back.

If you are spending too much load because of using social media
networks you have to look for alternatives like combos, special
promos or maybe you have to limit its usage.

You could also keep a spending diary and keep a note of

everything you buy in a day/week/month. Or, if you do most of
your spending with a bank card, look at last months bank
statement and work out where your money is going.

3. Get your family involved

Get everyone in your family involved

with keeping to a budget. Sit down
together and make a plan that you can
all stick to. Work out how much
spending money is available and agree
between you what youll each have.

4. Paying off loans and credit

cards
If you have loans or owe money on credit
cards it usually makes sense to pay off the
debt that charges the highest rate of
interest first.
Examples include:
Store cards, which normally charge the highest
rates of interest
Credit cards
Personal loans from the bank, which normally
charge a lower rate of interest than credit or store
cards

 It is important to make sure you

dont break the terms of your
agreements. So even if youre
focusing on paying down another
debt, you must pay at least the
minimum on any credit cards and
your monthly required payments on
any loan agreements.

5. Set a savings goal

Some people find it hard to get motivated
about saving, but its often much easier if you
set a goal.

Your first step is to have some

emergency savings money to fall
back on if you have an emergency.
Try to get three months worth of expenses in
an easy or instant access account. Dont worry
if you cant save this straight away, but keep it
as a target to aim for.

The best way to save money is to pay some

money into a savings account every month.
Once youve set aside your emergency fund,
possible savings goals to consider might include:
Taking a holiday without having to worry
about the bills when you get back
Having some extra money to draw for
special family affairs
Buying a new set of jeans without taking
out a loan

6. Investing your savings

As your savings start to grow, you
can:
Put more money into your
insurance. Its a great way to
make sure youll be able to live
more comfortably later in life.
Make an investment plan based
on your goals and timeframes.
Put up a small business

REALITY TALKS.
Most college students are living
on a budget. If not, they are
likely the students who have
simply just getting themselves
into a cycle of debt.
How to become smarter about
the way you consume your
money????

Stretch your peso further with

the following money saving tips:

1. Dig through your home.

Before purchasing anything from the
store, search for treasures in your own home.
Supply of pens and pencils may be hidden in
your dreaded junk drawer and perfectly clean
notebooks and papers may be stuffed in your
cabinets. Take note of what you already have
at home and consider what you will really
need before hitting the stores.

2. Look for handme down books

and other reference materials. Instead of
buying a new book or photocopying
handouts that you need for your classes, ask
your friends who already took up those
classes if they have kept theirs. You may ask
them if you may buy or rent the materials
for a much cheaper price or better if they
may lend it for free for the whole semester.

3. Do not make impulse purchases.

Before wasting a ridiculous amount
of money on anything, you must
always ask yourself first if you really
need it or you just want to have it.
Impulse purchases can quickly and
massively blow your budget. Aside
from creating your shopping list, set
a spending limit, and stick to both.

4. Shake off your cravings and do

some meal planning.
Your body needs food to withstand
the stress that come with being a
college student, but that does not
mean that you have to eat plenty to
stay healthy. Do not eat more
than what your body needs. It is
important to oversee what you
consume, because a healthy diet is
a key to a strong body and sound
mind. Aside from the health
benefits that you can get from
eating just enough, this may help
you reduce your daily spending.

5. Do not indulge in vices

There is nothing wrong with having
fun once in a while; just make sure
that you are mostly zeroing in your
money on the necessities rather than
on your personal indulgences.

WHAT else TO DO??

YOU REALLY DONT HAVE
THE ENOUGH MONEY

Ways on How to Earn Money While

Studying in College
1. Be a part or full-time tutor
Tutoring a child or even a high
school student is not hard. Many
tutorial centers and schools are
looking for tutors studying in college
that takes a specific course. For
example, if you are a Mathematics
major, most likely you will be hired as
a tutor for Math.

2. Work as a fast-food crew

3. Be a writer for blogs

4. Do online Selling

6. Be a part-time model

7. Direct Selling

8. Offer your service as a web

designer or computer related works

Encoding
Web designing
Trouble Shooting

9. Work part-time in a relatives

business

10. Offer your skills to other

people
.

To Wrap Up
All the ideas included in the lecture
are only some of the ways you can
manage your finances well. I guess
there are other ways not mentioned,
its you who can identify and work on it
based on your needs and your
situations.

References
1. Smart budgeting for college students
By Alexandra Caole Vila(philstar.com)|Updated June 16, 2014
- 5:24pm
http://www.philstar.com/campus/extra-curricularactivities/2014/06/16/1335516/smart-budgeting-collegestudents

2. Beginners guide to managing your money

https://www.moneyadviceservice.org.uk/en/articles/beginnersguide-to-managing-your-money

3. Ways on How to Earn Money While Studying in

College
byGILY TENORIOonJUNE 28, 2012
http://learnfinancialeducation.com/10-ways-on-how-to-earnmoney-while-studying-in-college/