From the old days until now many people have problems with personal finances, especially for students. It can be observed in internet, especially in social media that there are plenty of memes describing how students suffer at the end of the month. It shows that students are unable manage their personal finances.
So, financial management is of great importance. According to Horne and Wachowicz (2005,) financial management is"activities related to the acquistion, funding and assets management with some general purposes as background". With that understanding we already know what is meant by arranging finances. So in this essay, I will explain the ways and benefits of financial management for students.
There are several ways to manage finance. First make the expenditure budget for a certain period. For one week or more, expenditure budget is made to know the estimate of your expenses during a certain period.
Secondly, do not save too much money in your pocket, because you will be tempted by avariety of snacks or goods. Third, stay away from the glamorous lifestyle, just live in accordance with your financial condition. The most important thing is your basic needs has been fulfilled. Fourth long thinking, think before spending your money, do not follow any unimportant wants. These are some ways that can help you to manage your finances.
As for the benefits of managing finance. First, you can save every month because you already know your expenditure every month. Second, you can reduce the burden of parents, because your very high pocket money before you manage your finance well.
Third, indirectly you can help your parents to invest more because of the decrease in family expenditures. Fourth, your life is more organized because of the expenditure that has been planned. Fifth, you will no longer suffer at the end of the month because you ca eat more nutritions. With the benefits of from managing this finance, it can motivate you to manage your finances well.
So it is very important to manage your finances so that you do not trouble yourself and parents. By increasing the burden of their expenses so high because you do not manage your money well. And your life will also get better.
Reference:
Horne James C. Van dan John M.Wachowicz,JR.2005.fundamental of financial management,12th ed jakarta: Salemba Empat,2005