My aim is to handle some main issues about personal finance from young studying people`s perspective in my very first English blog text. Often young people move away from childhood home, when they are about nineteen years old. Sometimes a nineteen year old has never necessarily handled properly personal finance so it may be a shock to do it for the first time. (http://mtkl.fi/suomalaiset-nuoret-itsenaistyvat-aikaisin/)
The First guideline is to make sure that your expenses don´t exceed your income. Find out from your bank statement how much you have savings and how much you might get student and housing allowance and student aid in your new apartment. Sometimes your parents and your own income may affect getting student allowance and student aid.(http://www.kela.fi/web/n)
I keep track of my expenses to prepare a budget. I divide expenses in fixed and variable costs. Fixed costs don´t change and I have to pay them every month, such as rent, hobby costs, school food and traveling expenses. I However, variable costs may change and I may impact them with my behavior, such as spending on food, free time activities, and accessories. I see to that costs don’t exceed my student and housing allowance because I don’t work along studies. I have noticed that because of this I can handle my personal finance better.
This is of course decision making in the short term, but by understanding it on this level you can handle financial things better in the future. Creating and focusing on personal budget can be help in the long term, when all kinds of expenses and responsibilities grow.
How can young people have and effect on their expenses or income?
The choices are affected by how you want to spend your free time. There are commonly three solutions how to solve this case. Start working, take out a student loan or cut down your expenses. The alternatives include positive and negative effects. If you go to work, then your studies may suffer, because you cannot use that time to study. On the other hand some people don’t have hobbies or they need less time to do homework or it can be done at school. The student loan has to be paid back sooner or later but you can totally focus on school work. Cutting down expenses can have an effect on how a student wants to live. You can`t maybe buy fresh ingredients or enjoy your spare time and hobbies as you have used to. The positive effect is that you don’t have to go to work or pay back the student loan after you have graduated.
After all it is your decision how you want to use money. Someone wants to live in the moment and another one is very careful about spending the money. It is up to you!
Hopefully, you enjoyed reading my blog post and maybe you got some tips how to create a budget.
How other income affects financial aid? 2014. Kela. http://www.kela.fi/web/en. Source 06.10.2014
Suomalaiset nuoret itsenäistyvät aikaisin. 2014. Mielenterveyden keskusliitto. http://mtkl.fi/suomalaiset-nuoret-itsenaistyvat-aikaisin/. Source 26.11.2014