How to set financial goals for students

What is Financial Goal?

A financial goal means setting objectives for the future in the form of savings and investment of money. This could be to accumulate a million dollars or some money to fill their necessities of life. Financial goals taught me how to save and invest money by avoiding debt. Financial goals may also serve as a milestone on a roadmap towards a dream life. It can only be possible if you spend less and save more.

IMPORTANCE OF PLANNING FINANCIAL GOALS

It is important to set financial goals because it helps a person develop a saving habit, which is a greater indicator of leading a wealthy life. It’s also fruitful in the future to get retired or out of work.

Types of Financial Goals

Setting financial goals can lead to a better lifestyle. It makes a person economically strong enough for emergency situations. To set financial goals, it’s important to consider different time frames. These are:

• Short-term financial goals:

Short-term financial goals have one-year time period to accomplish a task like purchasing new furniture, new apartment, or home accessories etc.

• Mid-term financial goals:

Mid-term financial goals can be accomplish within one to five years like study abroad, for wedding plan or a home down payments etc.

• Long-term financial goals:

Long-term financial goals will take more than five years like saving for retirement, collection of money for bungalow, or wedding plan of kids etc.

FINANCIAL GOALS FOR STUDENTS

Setting of financial goals is not only compulsory for the elders but also for teenagers as well as children during study life. Students who live away from home have to manage their all affairs in small economics specified from home. Students have to organize classes, fees, extracurricular activities and function of college life. To manage all these affairs students must know the importance of financial goals.

It’s necessary to set financial goals because it helps to avoid stress related to money in the future. Loyalty is the most important part to get dreams and ambition. Financial goals may provide guidance to achieve dream. By establishing sensible financial goals is a sign of financial integrity yourself.

SMART FINANCIAL GOALS FOR STUDENTS

As a student set financial goals that must be SMART that is;

• Specific
• Measurable
• Achievable
• Realistic
• Time bond

FINANCIAL GOALS EXAMPLES FOR STUDENTS

Students may set the following financial objectives

• Recognize the things that make you spend money
• Live within your earnings
• Establish financial dealings
• Plan some financial actions
• Exercise prudent debt management
• Save money avoid dinning out
• Invest in yourself
• Put some serious thought into career path
• Focus on earning money

SHORT-TERM FINANCIAL GOALS FOR STUDENTS

Short-term goals are goals that you set for yourself to reach financial success within 12 months or less. Short term goals provide you with a sense of security, similar to a safety blanket. An emergency fund is the amount of money you have set aside in case of an unexpected expense like semester fees, or house rent etc. Budgeting is all about putting money where it’s needed.

Short-term goals are about tracking spending and making sure you’re spending less than your income. For example, let’s say you’ve created a student life budget, you’ve noticed you’re overspending on dinning out, so you’ve decided to budget and cook more often at home.

Saving a part of income means saving a portion of income. Students save their part time job income for some urgent needs. Short-term goal is a wise strategy for gradually increasing saving.  Assume you have a part time job a portion of your pay can be set aside for essentials like future vacations or textbooks.

SHORT-TERM FINANCIAL GOALS EXAMPLES FOR STUDENTS

Here are a few examples of short-term goals for students to be consummate within 12 months or less.

• Check your expenditure on daily basis
• Keep funds for something you value
• Set up an emergency fund
• Master budgeting
• Save some income from part time job
• Check your credit score on a regular basis
• Avoid using debit/credit cards

MID-TERM FINANCIAL GOALS FOR STUDENTS

One to five year is considered as a medium-term goal period, and it can have a big impact on financial stability. The planning of exciting life experiences is the focus of these goals. Repay student loan is considered effective method in medium-term goal to ensures you’re on track to pay off your loans without financial stress.

Like if a person studying and plan to be a teacher, repayment plan helps to pursing dream career. By setting aside money for unique opportunities such as study abroad or internships programmes, medium-term goal may assist to achieve all these opportunities. For example if someone wants to join a recognize company for internship plan of saving money helps cover up expenses and sets up for success.

MID-TERM FINANCIAL GOALS EXAMPLES FOR STUDENTS

Some good examples of student’s medium-term goals are:

• A dream of becoming head of department
• Save for work clothes
• Put some money aside for a car down payment
• Acquire a paid internship
• Plan for a full-time position after education
• Repay student loans
• Starting a paid internship

LONG-TERM FINANCIAL GOALS FOR STUDENTS

Long-term objectives may exceed from a five year plan and are essential to safeguarding your future. These objectives deal with significant life events. A major long term goal is purchasing personal home. Long term goal entails accumulating equity over time and owning a home. Sometime it happened that student wants a home close to place of study.

It can be only possible start saving for a down payment for becoming a homeowner in the form of long term goal.  With the aim of helping you save for dream homeownership. A quality education is guaranteed when funds are set aside for educational coasts, whether they are for your own continued education or the education of future generations.

LONG-TERM FINANCIAL GOALS EXAMPLES FOR STUDENTS

A number of examples of student’s long-term goals are:

• Providing life insurance

Insurance serves as a safeguard against financial hardship. Students can benefit from a variety of insurance plans to help them prepare financially for the future even before they begins their careers. Banks and certain businesses offer student protection plans that cover things like health care, homeowner’s insurance, and school fees.

• Take career plan seriously

The most crucial decision you can make to save your future is your career. The career path should align with the financial objective. Establishing financial objecting promotes long-term financial stability, which assists in choosing a valuable academic course.

• Invest in yourself

Investing in yourself is crucial because it helps students become independent and confident. Investing in oneself entails diligent learning and studying. Enroll in some productive clubs and workshops to keep yourself updated.

• Establish a plan of retirement

A person needs a retirement plan because it helps to secure their future.  A person’s employment determines the various retirement planning options available to them, such as pension plans, self employed plans, and CP funds etc.

• Create a plan for long term care option

To preserve their future, a person needs to have a plan. When you are unemployed, you must take care of yourself and not rely on anyone. Thus, long term care planning needs to be part of the planning process.

• Reduce living expenses

Reduce living expenses as much as you can. Minimize wasteful spending on eating out, visits, pointless shopping etc. Consider all the needless usages and make an effort to cut back.