Visa reveals the student guide to managing finances

"Starting University, whether in Dubai or overseas is possibly one of the biggest changes in a young person's life. For many students heading off to university, it will be the first time they have lived independently and have been required to handle their own finances. This is the perfect time for young people to learn to plan ahead and take charge of their money. The financial skills learnt now will benefit them for the rest of their life and stand them in good stead for the future," said Norlissa Kissam, Vice President of Marketing for the Middle East at Visa International.

Visa International has developed a bilingual Arabic and English financial literacy website, www.ehsib.com, for people of all ages to take a step closer to financial freedom. The website covers core skills such as budgeting and avoiding financial pitfalls along with practical advice.

"The first step, as obvious as it seems, is to open a bank account if you don't have one already. From this students can pay their expenses and deposit their income or allowance. If you don't do this you will have to carry all of your cash around with you which can lead to extra spending whereas a bank account allows you to keep track of how much money you have."

"Students need to understand the different types of financial products available to them and how they work, only then can they set about effectively managing their finances," says Kissam.

Savings account
A savings account is an easy way to start accumulating some financial reserves. Although saving accounts do not earn much interest, the money is readily available in case of financial emergencies.

Current Account
A current account is where regular income should be deposited, whether that is a student grant or an allowance. You will typically be able to withdraw money from an ATM and use a debit card for everyday shopping and have these transactions deducted from your account balance. "Keep a record of all your transactions so that you know exactly how much money you have in your account," continues Kissam. "You will receive a monthly statement that lists all of your transactions as well as your end balance and this is the best way to keep track of your expenses."

Debit cards
Many students will get their first debit card when heading to university and learning how a debit card works is essential for managing finances. A debit card is linked to either a current or savings account. When using a debit card either for cash withdrawal or for purchases at point of sale, money is taken directly from your deposit account. A debit card offers convenience due to its wide acceptance while allowing you to spend only what you have in your account.

Creating a budget
"When heading off to university it is essential that students learn to budget. This can be done by keeping note of their expenses to find out where their money is going. Students should also be realistic about their budget and include expenses for entertainment and clothing," says Kissam. "The next step is to check your expenses against your income to establish whether you have more going out than you have coming in."

Build good credit
Students can start to build a good credit history by using a debit or credit card wisely. A credit card should have a 20- to 30-day grace period so that interest won't be charged if you pay the balance in full every month. It is essential that students budget for interest payments if they decide they want to pay the amount owed over a longer period.

Convenience
"With a debit card you pay immediately; with a credit card you pay later and can spread the payments. Having both a credit card and a debit card gives you the choice with every transaction. The most important thing to remember about using a credit card is to pay off that card as soon as you can and not to over-extend yourself financially," says Kassim.

Part time jobs
"Whether staying in Dubai or studying overseas, more and more students are taking on part time jobs to supplement their incomes. A good place to start is the university's careers centre. Part time work is not only a great way to supplement your income and learn about managing your finances but it also allows you to gain work experience and to try out different areas of employment."

"Leaving school is a daunting prospect and hopefully these money-saving tips, will give students the financial savvy to be top of their class when it comes to managing a limited budget," concluded Kassim.