How good are you at managing money?

Financial management should be learnt early. If you are still having trouble, it's never too late to learn. Student writer Atia Rabbani reports

Experts say it is very important that students learn financial management as early as possible, ideally starting in high school. Most students in the UAE have quite a bit of pocket money, credit cards and parents with deep pockets. But how wise are they when it comes to using them?

Many already feel confident about their abilities. Yousuf Biltaji, an advertising student at the American University of Sharjah said: "I am very good at handling my money. If I really want something, I go back and check with my budget if I can afford it."

But are all students on the same track as Biltaji?
"I guess I am OK with handling money. I try to stop myself from buying stuff I don't need, even though at times it can be very tempting," said Salem Idris Mohammad, a business student at Sharjah Men's College.

The cause of overspending? "I blame the advertisements," Mohammad said.

Fiscal planning
Dennis Olson, chair of accounting and finance and a professor of finance at AUS, said: "Part of financial planning for students is to make sure they don't spend too much money, as most of the time students aren't really aware of how they are spending their money."

Olson said his big tip for students on healthy financial spending is to "keep track of what, when and how you are spending your money, write it down if you are going to forget."

"No one is expecting you to save money as a student, but all students can manage their money properly to control their finances. You have to spend money while you're in school. Students can't study all hours of the day. They need to go out with friends or buy things and that requires money," said Olson.

Yara Walid Saleh, another advertising student at AUS, said she is "horrible" at handling money. "I am really bad at handling money. When I see something nice, I can't resist not buying it, even if I don't need it. It's dangerous really."

The banker's view
Banks in general are like our financial teachers.
Notes spoke to Mohammad Mousa, manager of the Sharjah Islamic Bank at the American University of Sharjah, about students' financial management habits.

"We are happy to help students with managing their money properly and hear their comments about developing our services to be more helpful to them," said Mousa.

"In general I am happy with the way students manage their money. I see they have control but most of the times it depends on the parents. Some parents have open budgets for their children, others have limited budgets."

Value of money
Sometimes that can be the problem. Children get so used to parents always giving them money whenever they need it, that they stop budgeting for themselves.

Ameenah Zia, 18, a student of marketing and management at the American University in Dubai, said: "I've learnt my lesson now; earlier I wasn't that good with money. Whenever I had money, I used it all up because I knew I'd get more from my parents.

"When they stopped giving me so much money all of a sudden, I learnt to use money more wisely. I took part-time jobs and it's only when you actually make and earn money, that you know the worth of it."

Budgeting tips
So what are students supposed to do? With the high costs nowadays, it is pretty difficult to actually save up money.

Dr Donelda McKechnie, assistant professor of marketing at AUS, provided Notes with six basic tips that students could follow towards good financial management.

The writer is a student of the American University of Sharjah