Preparing a Student Budget – Understanding Wants and Needs

Sometimes it can be hard to tell when you want something and when you actually need it. In this developed country we are lucky in so many ways but many of us still seem to suffer with ‘first world problems’. The definition of a first world problem is: 

“Something that is considered a problem only because whoever experiences it has access to a lot of material benefits, and which would not be considered a problem in a developing country.” 

Next time you are standing in the supermarket and you’re annoyed that they don’t seem to have the leading brand of cola try buying the home brand instead. It won’t taste that different and you’ll probably even save a few dollars.

 Your needs

 When you prepare your student budget it is crucial to define what is a want and what is a need. Your needs are the basic things that you will require as a student. These include: 

       ·         Food and water
       ·         Shelter
       ·         Clothing
       ·         Books and other equipment for university
       ·         Transport

 Your wants

 These are the things that you don’t really need to survive but you feel they will improve your life in some way. These include: 

  • Going out and socializing
  •  Electronics and gadgets
  •  Expensive clothes and accessories
  •  Concert tickets

You can choose how much of your budget is allocated to these things based on their level of priority to you. These are the sorts of things that you want to think about before creating your budget

 

 

Student-Finance.com.au is not a credit provider and does not act as a intermediary between any credit providers. This website does not provide Financial Product Advice or deal in the sale of any financial product. If you require this service it is recommended to seek the help of a professional. You should consider your own specific circumstances before making any Financial decision.