By : Encik Mohamad Ashaari bin Awab _^K.B.;P.A.

The cost of living is constantly changing based on the current economic conditions of the country and the world. Efficient and systematic financial management is essential and should be practiced by every individual to ensure that their financial resources are not wasted on unbeneficial and unnecessary matters. The question is, do students also need to be smart in managing their finances? The answer is ‘Yes’; students need to manage their money wisely because good financial management skills are an important aspect of their lives. Here are some reasons why students should be smart in managing their money:

Students who understand and practice good financial management will build a strong foundation for their finances in the future. This includes skills in budgeting, saving, investing, and reducing debt.

Moreover, by managing their finances wisely, students can reduce the financial stress they may face during their studies. This allows them to focus on learning and achieving their academic goals without being overly distracted by financial problems.

Thirdly, students need to understand the risks of excessive debt and learn to avoid unnecessary borrowing. This involves making smart decisions about how to use student loans or scholarships, using credit cards wisely, and avoiding overspending, especially on non-essential items.

Good financial management during their studies will also help students prepare for life after graduation. They can save for emergencies, plan financial goals after completing their studies, and strategize on how to repay student debts like PTPTN, MARA, and others.

In addition, students should learn to set specific savings goals, such as emergency funds, wedding funds, educational savings, and retirement savings. It is crucial to ensure they do not become part of the statistics of Malaysians who fail to save and end up borrowing for emergencies, weddings, and, most alarmingly, having to work into retirement age just to pay off remaining debts.

Furthermore, students who master financial management skills will have more control over their lives. They can make more independent decisions and successfully achieve their financial goals, such as getting married, buying a house, traveling, or pursuing further education.

In conclusion, financial management skills are an important aspect of a student's life and should be emphasized as part of their education. With knowledge and the practice of wise financial management, students can build a strong foundation for financial stability in the future.

Date of Input: 30/10/2024 | Updated: 30/10/2024 | ayna