How to Plan and Manage Your NMDS Allowance

Being a tertiary student comes with the freedom to make many decisions. While freedom may be exciting, the kind of decisions you make today shape your life positively or negatively. As a young adult, you are expected to plan and manage your National Manpower Development Secretariat (NMDS) allowance or pocket money effectively. This article discusses five tips to help you manage your money.

?

·?????? Plan your spending.

As the popular saying goes ‘If you fail to plan, you are planning for failure.’ The same applies to your money. Before spending the lump sum or monthly stipend, draw up a budget and stick to it.

·?????? Save 10% of your monthly allowance.

Prepare for unexpected emergencies or delays in receiving the monthly stipend by building up savings. Open an interest-bearing savings account and save at least 10% of your monthly stipend or pocket i.e. LSL1, 870 X10% = LSL187 and be consistent.

‘Save when you don’t need it, and it’ll be there for you when you do’. – Frank Sonnenberg

?

·?????? Use student discounts.

Take advantage of student discounts on data bundles, groceries, event tickets and transport. Your student card can help unlock opportunities to save money, use it!

?

·?????? Avoid unnecessary debt.

Avoid using debt to finance your lifestyle, for example, buying clothes or going out on credit. Taking a high-interest loan or excessive debt, where the interest compounds monthly can negatively affect your ability to repay the loan, credit record, mental health and safety on campus. If you cannot afford it, be patient and save for it.

?

·?????? Avoid peer pressure.

University is where many students discover themselves and make new friends. Unfortunately, this is where peer pressure is also the rifest. Avoid situations or friendships that tempt you to spend money you do not have, excessive use of substances i.e. alcohol and drugs or engage in unhealthy sexual practices.

?

Embrace the freedom but make decisions that your future self will be proud of! Likhomo!