Author: Bakhtawar Batool Ansari is a student of BBA Finance at SisTech Sukkur.
In current times of inflation in Pakistan, tracking expenses and setting goals to manage finances effectively has become an important part of students’ lives. In a recent survey of 114 students, we explored their approaches to tracking expenses and setting financial goals. The participants were diverse, including 68 males and 46 females, with ages ranging from 18 to over 35. In terms of education, half of the participants were undergraduates, and the other half were graduates. Their fields of study varied, with 38% in education, 35% in business, 14% in engineering, 9% in arts and humanities, and 4% in health science.
Expense Tracking Methods: An overwhelming majority of the students (80%) reported tracking their expenses. Most students (51%) use mobile applications for this purpose, followed by manual record-keeping (24%), spreadsheets (12%), banking applications (8%), and other methods (5%). Participants generally found their tracking methods effective for maintaining records and setting financial goals.
Budgeting Practices: When it comes to budgeting, most participants (45%) stated that their budget is dependent on their income. Other budgeting approaches included a fixed monthly amount (32%), financial goals (13%), and past experiences (10%). The sources of income for these students were varied: jobs (48%), parental support (31%), freelancing (8%), scholarships (6%), savings (5%), and other sources (2%).
Spending Habits: The survey revealed that most students spend their money on transportation (25%), followed by food and groceries (22%), family responsibilities and rent (17% each), tuition fees (15%), and other expenses including online shopping (4%).
Financial Goals: Almost all participants reported setting financial goals. The majority (40%) set short-term goals, such as buying a new phone or traveling. Another significant portion (39%) saved money for long-term needs, such as emergency funds and future education. Only 12% saved for business investments, and 9% saved to pay off debts, including credit card and student loans.
Sources of Financial Advice: When seeking financial advice, most students turned to family (47%), followed by online resources (23%). A smaller number consulted financial advisors (13%) or university resources (5%), while 12% did not seek any financial advice.
The Role of Education: A notable finding was that 58% of participants felt their education had not adequately prepared them to track expenses and set financial goals. Additionally, participants cited unpredictable inflation and unemployment as significant hurdles in managing their finances effectively.
Conclusion
This survey highlights the financial practices and challenges faced by students today. While many are proactive in tracking expenses and setting goals, there is a clear need for better financial education to help them navigate their financial futures more effectively. These
survey results raise critical questions to consider:
- How can educational institutions better prepare students for real-world financial
management? - How can students be encouraged to seek professional financial advice rather than
relying solely on family or online resources? - What strategies can be implemented to help students cope with economic challenges
such as inflation and unemployment? - How can technology be leveraged more effectively to assist students in tracking their
expenses and setting financial goals?
Addressing these questions can pave the way for more informed and financially secure future generations.
