I know what you’re thinking. How can I possibly save money effectively from my allowance as a student? I barely have enough to live on. Well, you’re not alone. According to Businessday, many Nigerians find it difficult to save money, especially with the current harsh economic reality. Saving money can be hard when your allowance is insufficient to cater to your basic expenses. But, in this article, we share effective strategies that will teach you creative ways to save money as a university student in Nigeria. 

As you approach adulthood, studenthood is the first step to gaining some sense of responsibility but with limited pressure. For some, this is your first time having your own money. This often comes with the freedom to decide how to spend your money with no external influence. For others, you’ve been at this for a while. It doesn’t matter which category you fall in, learning how to manage money properly is a crucial life skill that can take years to develop.

With the strategies you will learn in this article, you can establish healthy financial habits that carry you into adulthood and lay a strong foundation for yourself while being a student. 

Some of the most effective ways to save money as a student are to create a budget that you can stick to, cook your meals, share expenses with your friends, learn a high-income skill, and start a profitable side hustle. You can also start a business, cut down on expenses, and track your spending habits. 

But why should you save money? You’re just about to find out, keep reading. 

Why Should I Save Money as a University Student in Nigeria

There are many reasons why you should save money as a young adult but summarily it helps you achieve financial discipline and independence. 

Saving money helps you achieve financial discipline and independence

If your goal is to be financially independent in your twenties, financial discipline is the map you need to get there. 

Saving money as a student gives you a taste of financial independence. Imagine making financial decisions on your terms without constantly asking your parents for money. Exactly! Saving money helps you build your financial muscles by teaching you discipline, and shows you the value of delayed gratification when it comes to spending.

How to Save Money as a University Student in Nigeria

1. Create a budget and stick to it: First things first, you need a budget. A budget serves as your financial roadmap. Make a list of your income sources, like allowances, side hustles (if you have any), or any other way that brings in money. Then, make a list of all your expenses. That way, you have a picture of where your money goes which can help you plan accordingly and dedicate a realistic amount to your savings account.

   

   2. Cook your meals: Eating out frequently can drain your wallet quickly. If you have to, learn to cook simple meals. This will help you save you a lot of money. You can also pool money with your friends and organize a get-together whenever you want to eat out to avoid overspending.

   3. Share expenses with your friends or roommates: Whether you’re living off-campus or in your school hostel, consider sharing expenses with roommates. This can look like renting a house with your friends or cooking together. Try as much as possible to slash your living costs to make room for other expenses and most importantly your savings. 

   4. Use public transport when you can: Transportation is very expensive in this economy because of the increase in fuel prices. So, make use of public transportation or carpooling options with friends to save some money whenever you can. 

   5. Learn a skill: whether you have completed your university degree or not, you can learn any skill and make money from solving problems for people using that skill. Learning any skill of your interest like product design, content creation, data analytics, graphic design, digital marketing, SEO writing, software engineering, etc, helps you gain an additional source of income apart from your allowance. That way you have enough money to spend and save for future expenses. 

   

   6. Take advantage of discounts and promos: Make use of any discount opportunity you have whether on bill payments, food, clothes, or other items. An example is the 2% discount Bankly pays their customers on bill payments. So, when you buy airtime or pay for GoTV/DSTV/StartTimes or IKEDC bills on the app, they pay you 2% back in your Betta Life Credits. So, be sure to look for these types of discounts in your banking apps or when you're shopping.

   7. Buy second-hand textbooks: Textbooks are one of the most cost-intensive items for students. So, instead of buying textbooks that become useless after school, consider lending from your seniors or buying second-hand ones which should come at a much cheaper cost than new ones. You can also rent from or share books with classmates. 

   8. Open a savings account: Opening a savings account is a more effective way of enforcing a savings habit instead of keeping your savings in your main account. Platforms like Bankly make it easy to set specific savings goals on the app, with 12% annual interest to grow your money. It is important to opt for a savings account with good interest rates that help you grow your money over time.

   

   How to Develop a Savings Habit as a University Student in Nigeria

   1. Set clear financial goals: It’s easy to put off saving from your allowance this month when you don’t have a clear goal you’re saving towards. You need to set clear financial goals to develop a consistent habit. What are you saving for?  It could be anything from buying a new gadget, a safety net in case of an emergency like your phone developing a fault, holiday shopping, a group trip with friends, etc. Having a clear financial goal gives you a sense of purpose and direction when it comes to savings. 

      2. Start small: Just like building any habit, small consistent efforts lead to significant results. You shouldn’t be trying to save half your allowance for a start. That’s unrealistic and often discourages you from making it a consistent habit. You can start with a reasonable amount, even if it’s just a tiny percentage of your monthly allowance. Then, as you grow to be more comfortable with saving as a whole, make efforts to gradually increase your savings percentage.

   3. Create a realistic budget: Creating a budget is great but make sure it’s a realistic one. Make a list of your income and all your monthly expenses then plan where you want your money going per time. A budget acts as your financial roadmap. It helps you know where your money is going and helps you figure out how much you can save conveniently.

   4. Get an accountability partner: Accountability partners are life savers. They can help you get back on track when you gear off. Having an accountability partner can look like creating a group savings account on a platform like Bankly where you and your friend can save towards a goal together. 

   

   How to Open a Savings Account with Bankly

   1. Download the updated Bankly App from the App Store or Google Play Store 

   2. Sign up using your phone number and provide your BVN and NIN, to complete your registration

   3. Log in to the App and go to “Individual Savings”

   4. Tap “Start Saving”

   5. Set a savings goal

   6. Enable the “Yes, I want interest” option

   7. Fund your wallet and start saving

   Developing a savings habit takes time but with a financial partner like Bankly, it’s easier to open a savings account, set clear goals, and smash them. Now that you have learned the effective ways of saving money as a student, simply download the Bankly app here to get started. It takes less than a minute!