Problem face by student in managing their finances

“Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like.” (Will Rogers, as cited in Krass, 2014)Student nowadays are not equipped with the knowledge to managing finances as it is crucial life skill. Even though financial responsibilities increase, their still have low understanding of budgeting, saving and debt management. Different problems faced by students while trying to process their finances for higher education include lack of financial knowledge, heavy cost of living, and overt spending habits.

One the main reason student struggle with saving money is they lack financial literancy. Some of student didn’t know how to manage money and clueless about debt and interest work. Then, they will overusing credit cards because they didn’t have a basic financial knowledge. For instance, without knowing how interest accumulates some student might sign up a credit card and overusing it. This will lead them to a huge debt that is hard to pay. To handle this problem, students need to join a financial literacy workshops to understand personal finance and decision making. Without appropriate knowledge, students will continue to make mistakes with their money that are easily preventable. Improving students’ financial literacy is the starting point to improving their ability to manage money.

Secondly, major problem student face is the high cost of living and tuition fees. Some of student find it hard for them to manage their finances effectively as the rising cost of tuition, transportation and food. Also, it often not enough to cover all expenses even with scholarships or part time jobs. For example, a student living in a city sometime need to spend more than RM800 a month for a rent. When you factor in food, transportation, and academic supplies, they’ll have close to nothing left. To handle this situation, universities should support students with affordable housing and provide budget counseling. Due to increasing living expenses, students are under financial pressure and might sacrifice their health or academic success. Offering financial assistance and resources can alleviate this strain.

Lastly, due to overspending at the beginning of the month lead student to a financial issues. Even though some student receive money from parent or have a part time jobs, they tend to overspend during the beginning of the month. For instance, student often to spend on expensive clothes and visit a fancy cafe in the first week which make them have no money left for transportation fee and groceries. A suggestion to help student handle this issue is they can use budgeting app and setting weekly spending limits. Lacking budgeting discipline, students will keep depleting their funds too quickly. A straightforward practice of financial planning can greatly lessen their monetary anxiety.

In conclusion, during higher education journey many students face serious financial challenges. The primary issues consist of insufficient financial knowledge, increasing living expenses, and ineffective budgeting practices like excessive spending at the beginning of the month. Financial issues can lead to long-term stress and academic consequences if not addressed properly. It is important students learn money-management skills to prevent experiencing debt and pain. If these issues go unaddressed, they can result in longer-lasting financial stress or academic setbacks. Students need to develop habits that will allow them to manage their money responsibly, avoiding the consequences of unmanageable debt.