By: Marcellino Sho
Edited by: Shasta Kansakar
DISCLAIMER
THIS ARTICLE SHOULD NOT BE USED FOR FINANCIAL ADVICE. THIS ARTICLE IS ONLY FOR EDUCATIONAL AND ENTERTAINMENT PURPOSES.
Introduction to Financial Literacy and Personal Finance
Talking about money has always been a taboo topic, yet every adult has to properly manage their wealth to lead a successful life. However, only one-third of adults understand basic financial concepts. This includes being able to know how to pay expenses, borrow money, budget, and invest/save for retirement. As for university students, it is very important to learn how to live frugally and not put too much pressure on one’s financial sponsor. A survey conducted on APU students to determine the status quo of their financial literacy showed that most of the respondents were somewhat familiar and very much interested in learning about financial literacy. However, there is a lack of resources for them to learn from.
By reading this article you, the reader, will hear tips and tricks from your peers to reduce
your monthly and yearly expenses. Financial classes are not taught in school, which causes a lot of young adults to be incompetent in managing their money. University students are in a transition period where not only do they need to be mindful of their grades, but also be mindful of their expenses each month. Students cannot depend on their financial sponsors forever, so now is the perfect time to build good financial habits which will go a long way in their life.
Personal Finance Bites: Emergency Funds
Emergency funds are saved up money which usually covers 1-3 months worth of expenses that are stashed away in a high interest savings account, which acts as a safety net in the case of unexpected emergencies like accidents, illness, or job loss. The amount of money that needs to be saved up varies from person to person depending on their expenses and income. Sometimes accidents can happen in students' daily lives (i.e., broken laptop, lost phone, etc). It is a great idea to keep some cash in hand in case of such emergencies, hence the name ‘Emergency fund’.
As for myself, I saved up 2 months worth of expenses in my savings account in Indonesia. This is because I still live with my family back home, so my monthly expenses are quite low. However, my laptop recently broke down, and I used some of my emergency funds to pay for the repairs. Fortunately I had some cash stashed away, so I won't need to ask for help from my parents!
Tips to Reduce Expenses For APU Students
While it is not realistic for college students to always have emergency funds, you can still save and manage your money properly. APU Times interviewed several third-year students, who shared tips to reduce expenses and manage money well at APU. All of the interviewees have part-time jobs working in English schools, convenience stores, or on-campus (i.e. TA, RA, and Student Organizations). They receive financial aid from their sponsors, and some are also receiving scholarships.
MONEY MANAGEMENT
It is always a great idea to be mindful of where you spend your money. Having a monthly budget and sticking to it is one of the easiest ways to do so. Analyze your expenses and prioritize your needs. Since Beppu has a culture of partying, drinking, and eating out with friends, do not feel pressured into always participating in these events.
FOOD & GROCERIES
Both of the interviewed RAs agree that learning how to cook is one of the best ways to reduce your food cost. You should buy groceries in bulk at the supermarkets downtown, and always keep an eye out for discounts and sales. Some of the supermarkets recommended by the interviewees are Gyomu supermarket (discounts on bentos) and Max Value (discounts on meat and vegetables). However, if you are running late to an early class on campus , you can also try the 100 yen breakfast at the APU Cafeteria
EFFECTIVE SPENDING
It is good to buy second-hand items as much as possible. Going on a shopping spree can cost a small fortune especially with clothes. You shouldn’t be ashamed of thrifting. Thrift stores not only offer a variety of clothes but are also relatively cheap. Some popular thrift stores in Beppu are Style, West Coast, and 2nd Street. An article made by Nadhira for APU INA highlights thrift stores for APU Students. Similarly, you can contact your senpais or search for things on a Facebook group called ‘minishare’. APU Students and Alumni have a culture of buying and selling second hand items on minishare, so be sure to utilize it when looking for second-hand items. Sometimes however, there are some exceptions to second hand buying though.. Laptops and other expensive gadgets are an exception since buying brand new ones usually offer insurance and a relatively longer life span.
TRANSPORTATION
If you need to travel a lot, you can consider buying a bicycle. Beppu is a very bike-friendly city, so you can bike anywhere and easily find parking spots too. It is way cheaper to bike than to ride a bus since the bus fares in Beppu start from 150 yen/stop. If you have a part-time job outside of Beppu city, you can also consider getting a license for a motorbike. As for daily campus commute for classes or work, you can get yourself a bus card. A bus card will cost you 100 000 yen/year and it will allow you to commute anywhere in Beppu city without paying additional fee. However if you don’t travel frequently, triple tickets are always available. Triple tickets will cost you 1000 yen which is considerably cheaper than a bus card.
PART-TIME JOBS ADVANTAGES
Having a part-time job can be beneficial both financially and socially. As a student you can work for up to 28 hours per week and on holidays you can work for up to 40 hours per week. You can apply for a variety of jobs both on and off campus. Do keep in mind that most jobs outside campus require you to be able to converse in Japanese. The minimum wage in Beppu city is 790 yen per hour, but there are some jobs that offer additional benefits.
Our interviewee Daryna works as a part-time English teacher and she is able to make around 60,000 yen per month working for two schools in Oita. Vincent, who works in a convenience store, doesn’t make as much but he is able to receive Haiki (廃棄) from his workplace. Haiki is a practice where employees can take items from the store that are on its expiration date for free. In Vincent's case, he can take up to 3 food items on the same day. Do keep in mind that different convenience stores will have different rules for Haiki. On the other hand, working on-campus as an RA will waive your AP house rent during your period as an RA. Being an RA will put you in charge of AP House residents and you will create and facilitate monthly floor meetings,which can bolster your social skills as well.
ADDITIONAL TIPS
Line (The messaging app) has a great tool called line receipts which you can use to keep track of your expenses by scanning your bills. Line also gives out small vouchers or coupons for discounts sometimes, so keep an eye out for it.
When you are shopping or visiting a restaurant, always ask if there are any student discounts, you might be able to save a few hundred yen. Big supermarkets or shops usually have a point system which can give out discounts of free items when you’ve collected enough points.
Living independently while studying abroad can be financially challenging.Nonetheless we hope this article can act as a resource for financial literacy and help new students in APU be more mindful of their own finances.
image resources:
https://irasutoya.com
https://www.freepik.com/free-photo/close-up-female-hand-counting-with-calculator_1121885.htm#query=money%20management&position=2&from_view=search
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