How To Budget Your Monthly Allowance

If your parents/ guardians send you an allowance of maybe let’s say, Ksh.20,000/= How can you pay your rent, buy food, pay for insurance and health care, debt repayment and have fun without running out of money? That is a lot to cover with the amount you have, right?

How do we navigate that? Simple, let’s work with a budget.

With a budget, you get to plan for every coin you have. But how will you balance that?

• Take Care of the Basic needs

The basics for every campus student is housing, food and transportation. The recommended amount of money to pay for your rent is 10% of your monthly allowance. Let’s say you live near your campus, what is the range of the rent prices where you are? Do you need a roommate to help you cover these costs?

You should also consider having an estimated budget for the food you eat, toiletries and electricity and your water bills.

Lastly, this budget should include the fare to and from school. You should also set aside some money for printing the assignments or funds to help you do a project.

• Health Insurance 

Most likely you might still be lucky enough to be covered by your parents’ health insurance. If you don’t have that then, it is advisable you sign up for one, just in case you have a medical emergency.

• Saving and Enjoyment allowance.

Once in a while, it’s good for you to save up for adventure, or that small party you want to have with your classmates. This sum of money is saved up after you have settled everything necessary. You could save up little amounts for a few months to go to that road trip that needs funding.

In conclusion, practice budget management: Your allowance, expenses and priorities will change over time, so actively manage your budget by revisiting it regularly, perhaps once in 3 months. If you’re struggling to stick with your plan, try the above tips

This strategy will help you make it out of campus . If you are open to making money before you finish campus, read more about the different types of side hustles you can do.

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