Principles of Managing Money For Student’s Finance

Principles of Managing Money For Student’s Finance: Do you know that you could be benefited from managing money wisely during your academic years?

If there is one thing you need to take care of as a student college, that’ll be your finance. It is important to manage your source of income whether it means your parent’s money, scholarship fund or part-time earnings.  Developing a good finance habit can prepare you in life after graduation.

As a college student, it is a challenge to spend money wisely because you haven’t had a regular income yet.

At that time, most of the students want to have fun and doing crazy things (bet you one of them). Especially students who live far from their home.  

There are things such as books, housing, college project and other expenses you need to look after, besides your meal plan or transportation. If you live in a big city, the cost of living probably higher or double than where you come from.

The fact is that you wouldn’t stay in college forever, would you? Well, except you choose to be in an academic career. You can use the period in college life to discipline yourself financially and pursue some job experiences (as a part-timer).

Another benefit is that you could start saving and grow your money since you are a student by learning how to save and invest. Being able to manage your money would make your experience in college more fun and rich because you’re able to explore your potential to grow and manage money. 

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With that said, I’ll share with you, some basic ways to manage money as a student college, ones that give you a lifetime benefit. So, let’s dive in.


Basic Principles of Managing Money Wisely For a Student College

Here’s 6 principles of managing money for Student’s Finance that you should have now!


Principles of Managing Money #1 Financial Goals

Setting your short, middle and long-term target of your finance during the college period. It is the best place to begin.

Your short-term goal can be paying off for books of this term/semester, buying a printer or a small notebook.

Middle term-goals can be visiting your family, study tour, traveling or camping with some friends. And the long-term goal can be having a house, buying a motorbike or car, get married, having an early retirement or continue your master degree. Whatever it is, write them down.

After that, count on how much money you’ll need to achieve each of those goals. Figure out also some practical ways to make them happen.


Principles of Managing Money #2 Financial Plan

After determining your goals, make a financial plan. It is a comprehensive evaluation of goals, steps, and spending to help you meet your goals in the future.

Derive or generate the financial plan from your short, middle and long-term goals. And break them into a more specific plan.

This plan will make you more focus on the way you spend money. Without a plan, money is bound to go in the wrong place. When did the last time you spend money without knowing why? I bet you had no plan at all at that time, did you?

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Other elements in the financial plan are budget, saving, insurance, risk management and retirement plan.


What kind of saving, investment, insurance, risk management or retirement you’d like to have in the near term or the future? Please give your comment on the box below this article.


Simply start to plan them in your financial plan. You need to know how much money you should save to reach your goals. To make it easier, the Finansialku application will help you to count it.

Before making any allocation of how much money you need for each goal, make a priority scale to decide which one should be met first.

Now, say that you need a motorbike because you want to save for the transport expense. And you also notice that you’ll need some money to pay off the housing for the next 6 months. But you receive an invitation to mountain climbing from a friend.

You could prioritize paying off the housing bill and saving to buy motorbike before the mountain climbing.

In his book, You Can Choose To Be Rich, Robert T. Kiyosaki mentions that the principle of prioritizing money is to pay yourself first. He is not suggesting that you should spend the money over whatever stuffs you like, such as the latest gadget or cosmetics. What he means is that you turn the money into an asset.

In other words, invest your money to make more money.

Wouldn’t it be good to have a passive income grow out of your asset since a young age?


Principles of Managing Money #3 Budgeting

A budget is the record of your regular expenses monthly. Budget making is usually started at the beginning of the month.

It helps you to control your spending. And it keeps you from overspending as well as impulsive buying.

List first the income you receive each month, whether it’s from your parents, birthday gift, part-time earnings or other incomes. Then, write down the expenses you’ll have each month.

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You can adjust this 30/20/20/20/10 budget allocation into your needs and income.

Use 30% on groceries, housing, copy of lesson materials, meal plan, transportation, and other college necessities. At least give 20% on debt repayment and insurance, and 20% on savings or investment.

For entertainment no more than 20% and 10% for religious or charity purposes. Remember to list your needs only.

Use the Finansialku application to help managing your budget. You can download it from Google Play Store or click this banner below.  


A budget allows you to keep the record of the expenses so you can evaluate it later. It prevents you from impulsive buying and overspending.

You should make it flexible as the spending and need vary each month. Remember that a budget doesn’t guarantee that you’d be careful about spending. So, be disciplined!


#4 Saving And Investment

This is a pretty much challenging part to do. As a student college, you want to have fun and try new experiences in college. And sometimes you’d give up the choice of saving money rather than watching your favorite concert.

But, saving and investment can give you a benefit that will last long after graduating. These are ways to grow money and turn it into an asset. It is the secret to create your wealth since a young age.

Though you still in college, you need to prepare your finances ahead of time. Because the more you save and invest, the more asset you build and the less money you’ll borrow. Along with that, the habit of saving will save you from having too many debts or loans.

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There are many ways to save and invest your money. You can store it up in a saving account or deposit. Pick up the bank that offers a high interest each month. Or choose an instrument of investment to grow it.

However, to decide the instrument of investment, you must be careful. Investment offers a profitable return. But without learning the instrument and how to invest in it, you can end up losing money. So choose the instrument that you are well-informed.

This is particularly for investing in a stock or mutual fund. One of the safest instruments that you can try is in precious metals such as gold and silver because their prices relatively increases each year. 

If you want to learn more about investing in a stock, you can click this button. You will get free ebook (Ebook only available in Bahasa Indonesia).

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#5 Create Other Income Streams

Getting a part-time job during school break is probably a great chance for you.

Learning a new skill, meeting new people and growing money to name a few, are benefits you’d enjoy. Especially when you have to pay for housing, this can be of so much help.

There are plenty of offline and online gigs you can try. In this article, you can find out more about the type of income and occupation that will help you make an informed decision on the type of job that suits you best.  

If you prefer to work from home with higher flexibility, meaning keeping your class schedule from any interruption, then go check this article I wrote about work from home jobs for every student college, whether you are a freshman, or in your last year.

Pick up the one that most suitable for your passion or skill. This step is worth a try for those who want to make money and grow their assets while in college.

You’ll only need a laptop, smartphone, and internet connection to begin. Ready for your first shot?


#6 Be Wise In Your Expenses

Although you have savings and investment, if you spend thoughtlessly, those can be run out. To avoid it, prioritize your need before your want. This is a classic way to keep your expenses low.

Another way to do it is by having your budget outlined and learn to stick to it. In a big holiday season, a strong urge to spend over new things especially clothing and electronic items probably arise. As many products are given a discount tags at that time.

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To avoid this spurge from taking over your action, it is good to have a wish list. It’s a note where you record things you wish or want to along with the price.

By doing this, you would think twice to buy right away when you see them. Use a small note that you can put in your pocket or place where you can see them often such as in a fridge’s door.

Plan your trip of visiting family or relative. Particularly if you live far from them. The cost of your trip could be double during the holiday season.

So, book your ticket as early as possible when the price is still affordable. Try to cut out small spending such as eating out, or unplanned leisure activities.

This way will surely keep your expenses low especially during a tempting season such as Lebaran, Christmas or New Year eve. It also helps you to live within your means and form a habit of wise spending.

So instead of going broke and adding more debts and loans, you are saving more at the end of the year.



Being informed on personal finance as student college is a way to experience financial freedom. One of the benefits is you could build your asset since a young age.

These 6 basic principles of managing money will bring you to your financial goals if you involve it in your practice. To quote the old saying, practice makes perfect.


If you find this article useful, please share it with other college friends. By doing this, you help them reach their financial goals.

And if you have any other principles that are proven to be effective in managing money, please share in the comment below.



  • Mirima Caldwell. June 25th, 2019. Managing Your Money While In College. –
  • Alexandra Rice. May 21st, 2019. 7 Tips in Money Management For College Student. –


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  • Student’s Finance –