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13 March 2019 | Story Xolisa Mnukwa
financial savvy
Over 60% of South African students are in debt and spend more than the average South African adult.

For many students, university is their first money-management experience, and it is therefore crucial for them to prioritise basic personal-finance knowledge in order to avoid poor money management, and not knowing where their money is going.

Various other educational institutions, facilities, and initiatives such as Student Connections highlight student financial wellness as a topic of importance at higher-education institutions, because of the following reasons:

1. Low retention rates (university dropouts)
2. Loan default (graduating with student-loan debt)
3. Financial hardships affecting future success (low academic performance)

According to LinkedIn, a business and employment-oriented service, the spending and saving habits you develop in college are likely to stick with you throughout your adult life.

A personal finance study conducted by University of the Free State (UFS) Economics and Finance Lecturer, Cecile Duvenhage, revealed trends on how much students spend, and what they spend it on. Her outcomes discovered that students believe money buys them worthwhile experiences; it also revealed that over 60% of South African students are in debt, spending more than the average South African. 


According to Duvenhage, the best way to optimise your use of money is to understand three things:

1. The psychology of money – relationship with money, your goals (reality, beliefs, perception, experiences, repeated messages)

2. The science of money – where is your money? What are you using it on, and how to make more (investing, savings, assets, liabilities, expenses, and income/pocket money)

3. The art of money – creating a financial game plan to stay afloat (knowledge, context, personal goals, game plan)

The Guardian website also highlights important tips for managing your money:

- If you’re struggling to manage your personal finances, ask for help. The earlier you get support, the less susceptible you are to overspend 

- If you have financial aid, be sure to complete and send back your signed agreements in order to avoid delays in obtaining your money

- Add up your income, and then deduct all your essential expenses.

- Essential expenses include: tuition fees, rent/accommodation, electricity, and other accommodation expenses, groceries/food, and travel costs

The article, 6 common money management mistakes college students make, advises students to “live within your means, and [to] make choices based on the money that you have available.” 

The article further recommends that students download a free, easy-to-use budgeting app such as Fudget: Budget Planner or Intuit Mint on their cellphones, which automatically creates a basic spending plan to personalise according to their means.

For enquiries or assistance with money management, contact finaid@ufs.ac.za 

News Archive

Food insecurity should not stand in the way of education
2015-06-11

 

Every year, hundreds of students drop out of university due to financial difficulties – only to return to dire financial circumstances. It is only a few who manage to secure a bursary to fund their studies. These bursaries often pay only for academic and residential expenses, leaving students without additional funding for food.

The University of the Free State realized that up to 60% of its students were food insecure. Many of these students admitted to having to work after class to buy food or having to beg from friends. In 2011, the UFS launched the No Student Hungry Bursary Programme (NSH), which provides modest food bursaries to food insecure students. Currently, 130 students receive food bursaries from the programme to ensure they have one less thing to worry about while they are studying.

This year, at our Autumn Graduation Ceremony, six beneficiaries of the NSH Bursary Programme, received their degrees – an achievement all them feel they could not have reached was it not for the support by NSH.

For Tshililo Nethengwe, accounting student from Venda, her first year at university in 2012 was a daily battle. Although her parents managed to pay her study and accommodation fees, the meager monthly food allowance her parents could afford was not enough to last her the month.

“Every morning I used to tell myself not to think about food because I am here to study. Somehow, I still managed to get something to eat – even if it was just a few slices of bread a day. I was very determined to succeed in my studies, and NSH took away the burden of needing to ‘hustle’ and beg for food.”

Tshililo was one of six NSH recipients who received their degrees and is now doing her honours in B.Com Accounting.

“The NSH Bursary Programme invests in potential, and supports academic achievers who come from challenging backgrounds,” explains Vicky Simpson, co-ordinator of NSH.

“We promote the success of undergraduate students, enabling them to focus on their studies and not on where their next meal will come from. Successful graduates will have a positive and direct impact on our economy, different communities, and many households.”

The NSH food bursary is awarded to students on the basis of financial need, academic excellence, and the commitment to serve the community. We have helped more than 500 students since 2011, when Prof Jonathan Jansen, Vice-Chancellor and Rector, started NSH.

“These students share amazing stories that inspire us. Many had to endure hardship, but they managed to persevere, worked hard, and made it to university. The ability to buy a meal makes an enormous difference.”

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