Students are inclined by psychological effects that have an impact on their poor saving habits. In this context, students believe that they are too young to start saving and claim they will start saving once they are employed. However, they need to cultivate financial intelligence and start developing good spending habits by beginning to save at an early age.
- Influence by wants and not needs
Students are influenced more by wants and not by the needs. They do not understand the difference between wants and needs, thus, spend all they have for immediate gratification. Furthermore, there is peer competition among students in terms of fashion trends and high tech devices. Most students opt for buying expensive clothes and devices to keep up with new trends. As a result, they end up not saving, but splurge on things they do not need.
- Fun pursuit in campus
Campus life depicts much fun in terms of clubbing, holding and attending parties as well as eating costly junk foods. This leads to extravagant saving, especially during weekends as clubbing and partying has become a norm in colleges/universities. Another thing that that prevent students save money is the lack of knowledge in budgeting. Most students do not know have a plan to spend their money. Immediately they get money they do not understand how to set limits and those who have budgets are unable/unwilling to stick to their budget.
- Diverse sources of money
Students have money at disposal from their parents, friends, guardians as well as student loans. The notion that they get money from these sources makes them spend without saving because when broke they can get money from these sources without much hassle.
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