Money Matters: Practical Tips on How to Manage Financial Stress

Olajide Marvellous

The current economic hardship in Nigeria has left no one untouched. It has both a direct and an indirect effect on every individual in the society, irrespective of their social class. Students are not left behind in these recent turn of events. Students are always in need of money to cater to the responsibilities of feeding, buying books, printing materials, completing assignments, among others. This, coupled with the recent hardship, has left us stressing over bills that come with the urgency of a deadline. This financial stress can have major negative impacts on our academic performance, mental health, and physical well-being as students.

Financial stress is a psychological state where financial concerns are greater than available resources. There are certain situations and behaviors that trigger financial stress. This includes poverty, high bills, lack of financial planning, and poor spending habits. Among students, several factors contribute to financial stress, such as students’ monthly income (allowance from parents or side jobs), ability to save, academic materials cost, student borrowing levels, and cost of feeding. These factors are the major determinants of financial stress among students. The inability to pay bills as a student, to eat regularly, and to purchase required academic materials (books, course packs, supplies) due to their high costs, as well as difficulties in paying school fees and work schedules, are part of the factors that contribute to financial stress, which negatively affects academic performance for students.

This is a link between financial stress and poorer mental health outcomes; for example, worry over finances can trigger mental illnesses like depression and anxiety. Similarly, studies report an association between financial stress and general poor mental health. In addition to challenges in students’ mental health, there is a link between financial stress and academic success, especially when it comes to student attrition. Studies show that students who experience higher levels of financial stress are more likely to have a reduced interest in their academics and, in extreme cases, discontinue their schooling than more financially secure peers. A study also reported that finances negatively impacted performance in a class. This may be a result of having to work more hours to settle bills or for living expenses, which subsequently reduces the number of hours committed to studying. How then do we deal with financial stress as students? To manage financial stress as a student, there is a need to address the root cause of the problem. Some of the applicable strategies to manage financial stress include:

Create a budget and track your spending: Carefully list all your income sources and expenses, including housing, food, transportation, and entertainment, to understand where your money is going and identify areas to cut back. This would help in ensuring financial accountability. The next thing you must do is to track your spending. Monitor your daily expenses to ensure you stay within your budget and avoid impulse purchases. Focus on essential expenses like housing and food before allocating money to nonessential items. This would help cut down on unnecessary purchases.

Find ways to earn extra income: Consider applying for part-time jobs, freelance work, tutoring, or selling unused items to supplement your income. Make sure that the working hours of your job are flexible and it would not have a big impact on your academic/study time. You can also explore other available financial aid options like scholarships, grants, and work-study programs.

Reduce unnecessary expenses: Consider walking to class instead of using public transportation as much as you can. You should also reduce the amount you spend on necessities like feeding. Eating out, for instance, can be expensive, so prioritise cooking your own meals to save money.

In conclusion, if financial stress is significantly impacting your mental health, consider reaching out to a health practitioner. You can always utilise the health resources on campus and take a trip to Jaja clinic.

Photo credit: Law Office of Nicholas G. Callas