One in every four Nigerian student struggles with effectively managing their finances. Money management skills are essential for students, particularly those from low-income homes. You must learn to budget and prioritize your expenses to stay financially stable throughout your academic year.

This blog post provides practical personal finance tips to help you take control of your finances as a Nigerian student and achieve your academic and personal goals.

Below, we’ve grouped the tips into three practical categories for easy use:

Top 3 Personal Finance Tips for Nigerian Students

1. Budgeting Basics

To effectively manage money, you must understand the basics. Here, we’ve listed some essential budgeting basics to get you started on the right track:

a) Make a budget

Creating a budget is the first step to effective money management. Do you have some sources of income? List them out. This could be your monthly allowances, money from friends and family, funds from scholarships, or part-time jobs. Once drafted up, make a list of your expenses. Essentials such as rent, transportation, groceries, books, entertainment, and leisure needs should be categorized and allocated funds based on your priorities and income level.

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b) Track your expenses

You’ve created your budget. It’s time to track your expenses. Tracking your expenses keeps you accountable and helps you live below your means. Use a notebook, spreadsheet, or an app to record every penny you spend regularly. When you make purchases, be it textbooks or groceries, jot them down. Review your spending regularly, see if there are areas to cut back on, and make adjustments.

c) Differentiate between needs and wants

Needs differ from wants. Your needs are necessary expenses required for your well-being and academic success. They include rent, textbooks, groceries, and school fees. Wants, on the other hand, are non-essential needs you can do without. Although they enhance your lifestyle, they are not a necessity. These include eating out with friends, clubbing, and buying new gadgets. You can divide your monthly spending into needs and wants, prioritize the most essentials, and eliminate the non-essentials. This will help you save money and stay within your budget. 

2. Saving Strategies

A solid savings plan is the foundation of financial stability. The following effective saving strategies will help you reach your financial goals:

a) Set a savings goal: short-term Or. long-term

A clear savings goal can motivate you to save consistently. First, identify if you want to save towards a short-term goal like buying a new gadget or a long-term goal like rent. A long-term savings goal is recommended if you plan to save for school fees and a side business. Whichever you choose, break your goals into smaller, actionable targets. Then, set a timeline for achieving them. Finally, track your progress occasionally and adjust your savings accordingly.

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b) Build an emergency fund

Life is unpredictable, and things can go south quickly. You need an emergency fund to hedge against unplanned expenses. To cover unannounced expenses such as repairs, property loss, and medical bills, save at least three to six months’ living expenses in your emergency fund. You can create a savings goal to lock a small portion of your monthly income until you reach your target. That said, make sure to keep these funds separate from your daily spending money so it’s easily accessible in times of emergency.

c) Automate your savings with apps

Technology has made saving easier and more convenient. With banking apps, you can automate your savings, set up weekly transfers from your account, and divide your savings into groups. You can also lock funds in fixed accounts and earn monthly interest. If you’re generous with money or are constantly tempted to spend, use a savings app to lock your funds. This approach will help you reduce expenses and build a savings habit.

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3. Generate Extra Income

In addition to budgeting and saving, earning extra income can provide a financial boost. Consider these options to increase your income:

a) Explore part-time job opportunities for students

In one of our blog posts, we discussed part-time job opportunities students can explore. Jobs such as freelancing, tutoring, etc., fit into most students’ schedules and can serve as an extra source of income. This will help you earn additional income to support your expenses and savings goals. 

For starters, look for on-campus jobs, such as working in the library, tutoring, or assisting in research projects. Off-campus opportunities, like retail, food service, or customer service, can also be viable options. Part-time jobs provide you with extra income and offer valuable work experience and skills that can enhance your resume.

b) Try online freelancing

Freelancing opportunities allow you to work from home under your own set hours. With skills like content writing, graphic design, social media management, and virtual assistant, you can make money on Fiverr and Upwork. You must identify your skills, create a profile on the freelancing platforms, and then start bidding for projects. To learn more about how to get started, read our guide on how to start freelancing as a student with no experience.

c) Start a small business or side hustle

Starting a small business can be a rewarding way to generate more income. Not only does it teach you saving strategies, but it also offers valuable working experience you can use in the future. Depending on your interests, you can try small side hustles such as e-commerce, selling handmade products, laundry and dry cleaning services, event planning, personal shopping, and styling. To learn more about small businesses for students, read 20 unique business ideas students can start with little to no capital.

4. Smart Spending Habits

While earning and saving money are crucial, developing smart spending habits is equally important. Here are some tips to help you spend wisely:

a) Comparison shopping

Comparison shopping involves comparing prices from different vendors before making a purchase. This is an excellent way to find discounts and get the best value for your money. Price comparison websites like Jumia and Konga can help you quickly find the lowest prices on items. Alternatively, if you’re shopping offline in a physical marketplace, you can visit various vendors to see price differences. This practice saves you money and helps you avoid overspending on needed items.

b) Utilize student discounts and offers

It’s quite easy to find discounts and offers as a student. For example, many cloth vendors offer discounts on thrift clothes. You can take advantage of this offer to save money. Also, bookstores usually discount second-hand books. Ask around within your school environments, and you’ll find more businesses willing to offer discounts on items. More importantly, constantly wear your student ID card so businesses can easily identify you and offer discounts. Use this approach to save on everyday expenses and activities.

c) Avoid impulse purchases

Are there items you do not need? Resist the urge to purchase them. Impulsive buying can quickly drain your finances. You want to be sure you need something before making a purchase. A good practice is to ask yourself if the item is a need or a want. Can I afford it? Is it within my budget? Whatever the answer, make sure to give yourself at least 24 hours before deciding whether to make the purchase.

Also, pay attention to your emotions. Stats show that people under stress are more willing to spend on items, so avoid shopping during this period. You can practice restraint and mindful spending to put this in order. Ultimately, you’ll resist splurging money on unnecessary purchases and achieve your financial goals.

Conclusion

While we agree managing finances can be hard, it’s not unachievable. With the tips shared in this guide, you can start by taking baby steps. Create a budget and use a tracking tool to record your expenses. Set up a money-generating side hustle so you don’t run out of funds. Develop smart spending habits and avoid impulsive buying. With constant practice, you can take control of your finances and set yourself up for a more secure future. Remember, small changes and consistent efforts make significant differences. Start today, and you’ll be on your way to becoming financially responsible and independent.

At Student Upkeep Initiative, we help low-income students access funds and sponsorship to further their tertiary education. Visit our sponsors page to find sponsorships that meet your educational needs. All the best in your academic journey!