MANAGING FINANCES DURING A PANDEMIC:
We have found that students are in very different situations and can limit their circumstances to what they can and want to do now. Almost everyone experiences adversity in one way or another. Individuals lose their jobs and the wages they depend on, with no guarantee of a return to a stable state. It can be very difficult to plan anything right now with so much uncertainty in the world.
We hope to give you some tips on what you can do to help you financially in these uncertain times. Not all of these tips apply to you, and they’re good. We want to highlight a variety of options so that you can approach your personal finances in the way that works best for you.
1. Stay informed and safe.
Talk to your family about major financial changes that may be needed, especially if a family member has lost their job. Can they continue to support you as before? Will they trust you differently than before? Start the conversation so everyone is on the same line. It’s no secret that the global economy is battling the COVID-19 pandemic. Now, more than ever, it is important to pay attention to financial news to protect you and your wallet.
Stay informed by signing up for a newsletter from a source you trust. If you use a financial app (like Mint or Acorns), they can offer you a newsletter with the latest financial news. If you no longer want to deal with money, our office offers a number of personal financing tools on our website. Now is a good time to start learning! Protect yourself from blows. The coup leaders take advantage of the instability of the world we live in. Check the security of your accounts and keep your personal and financial information private.
2. Evaluate your financial relationship with your family
Talk to your family about major financial changes that are needed, especially if a family member has lost their job. Can they continue to support you as before? Will they trust you differently than before? Start the conversation so everyone is on the same line.
3. Evaluate your prospects and financial plans
The COVID-19 pandemic may have given you new insights into your financial habits and needs. This can lead to changes in your financial goals. It can be difficult to predict the future now, but identify what you have under control and make a plan.
4. Adjust your budget.
If you currently have limited income, try to reduce the unnecessary fees charged by your account. Many accounts require that you do not maintain the minimum required balance and/or do not make a minimum monthly direct deposit. If you want to change banks, consider online savings account to maximize your interest income. The most important step in the budget is probably the periodic review and adjustment that takes place in the event of major financial changes. There is no doubt that significant financial changes are taking place around the world. Evaluate how interested you are and redistribute budget allocations.
While some costs are likely to have fallen (social costs, food, transportation, hairdressing, dry cleaning, personal fitness classes, etc.), others may have increased (grocery bills, food delivery, online services, and subscriptions, etc.) budget around the changes to be reproduced. Contribute more to the economy. If a lesson can be learned from the global pandemic, the unexpected could happen at any time, so we need to be as prepared as possible. We’re not saying that you should stack canned food in your pantry, but that you should have a plan for when the unexpected happens. Start an uncertainty fund if you don’t already have one. Irregular income plan.
If your prescription has changed during this time, determine how to do it. You can also expect one-time extra income, such as a surcharge, tax refund, first aid, housing on campus, and/or maintenance discount. Take an inventory to determine how much you need to spend on bills, groceries, and other necessary expenses, then decide how to handle the rest. We recommend that you save it for later.
5. Evaluate your banking relationships.
If you currently have limited income, try to reduce the unnecessary fees charged by your account. Many accounts require that you do not maintain the minimum required balance and/or do not make a minimum monthly direct deposit. If you want to change banks, consider online savings account to maximize your interest rates.