Where does my money go?

While planned big payments like rent and utilities are hard to forget, other expenses can also have an impact on your finances, making us all wonder, "Where did my money go?" Therefore, it is crucial to regularly review your finances, identify where your funds are being spent, and consider alternative uses for your money if possible.

During our discussions with university student and staff, we've noticed that certain expenses tend to have a big impact on our budgets. These include “Buy now, pay later" services, food, multiple subscriptions, microtransactions, transport, and alcohol and vapes. We've also found that engaging in social activities and going out can often lead to significant spending. However, we understand that university life can already be quite stressful, and we don't want to discourage you from having fun and enjoying yourself. It's all about finding a balance between managing your finances and making the most of your time at university.

Buy now, pay later services is the biggest threat to students’ finances

"Buy now, pay later" (BNPL) services, such as Afterpay, allows consumers to pay for an item in instalments and are increasingly popular among students. While they can be useful for purchasing expensive items, frequent use can lead to financial strain. A survey conducted by ANZ in 2018 found that individuals who used BNPL services scored lower on financial wellbeing quizzes than those who did not use them. Research has also found that these services lead to higher spending, which may negatively impact your finances in the long term. Furthermore, the majority of BNPL services available in New Zealand have late fees starting at $10, which increase over time depending on the delay of the payment.

Financial advisors recommend using these services to cover the cost of items one at a time or to purchase larger items such as home appliances and furniture.

Cheaper food options

Food expenses can easily take a toll on your finances and budget. However, there are several alternatives that can help you save money in the long run. Supermarkets tend to be the most expensive option, so consider exploring Asian stores, butchers, or farmers markets near your accommodation. These alternatives often offer competitive prices and can lead to significant savings. If grocery shopping and cooking aren't your favorite activities, meal kits like HelloFresh or Bargain Box can provide a convenient and cost-effective solution, replacing frequent takeout orders.

When the temptation to order food delivery strikes, try to explore nearby options within walking distance instead. By ordering takeaway over the phone and picking it up on foot, not only can you save money, but it also presents an opportunity for a refreshing mental health walk and a chance to discover hidden gems in your neighborhood. Additionally, Conscious Eats is renowned for its affordable and filling on-campus meals priced at just $7. During busy exam times, consider whether you'll have the motivation to cook dinner and if it's worth ordering an extra portion for later. For that reason, keeping an empty and clean container in your bag is always a good idea, as it promotes sustainability and helps reduce potential waste, thereby contributing to saving the planet.

Reviewing your transport options

Transportation can easily become a financial burden, especially if you drive and park on campus. While we don't recommend favoring a one-and-a-half-hour bus ride over a 15-minute drive in your own car, it's important to explore alternatives to driving alone and paying for parking all day. One obvious option is to consider the public buses and trains available from your home to campus and evaluate whether using public transport would be cost-effective for you. Carpooling with a friend can also be a great opportunity to save money, maintain your social connections, and motivate yourself to come to campus on days when you're not feeling up to it.

If you still choose to drive to campus, it may be worth considering more affordable parking options. AUSA (Auckland University Students' Association) often collaborates with parking providers near the campus to offer discounted parking rates to students.

If you already live within walking distance of campus, it might be more beneficial for you to leave home a little earlier to avoid spending money on an unnecessary bus or rental e-scooter. After all, a pleasant walk to campus could serve as a nice alternative to going to the gym on long days.

Reviewing your Subscriptions services and reoccurring payments

Unused subscriptions, such as those for the gym or streaming websites, can have a significant impact on your finances if you neglect them. It is crucial for you to periodically review your bank statements (or app) to track where your money is being spent and identify any overlooked expenses. A helpful practice to adopt is to record all payments debited from your bank account in an Excel sheet or a dedicated budgeting app. This way, you can ensure that you don't overlook any automatic payments, particularly those associated with subscriptions you no longer utilize and may have completely forgotten about.

Another option to save on reoccurring payments is to consider reviewing your power, Wi-Fi, and phone provider to ensure you have the most cost-effective plans that meet your specific needs. For instance, you could assess your phone plan and potentially reduce your data allowance from unlimited to 5 GB per month if you already have Wi-Fi access at home and on campus. If you live alone in a place where Wi-Fi is not included in the rent, you might even be able to forgo paying for internet altogether by opting for an unlimited data plan that can serve as a hotspot for your computer and TV when necessary. You can also check out Moneyhub’s webpages comparing the cost of broadband and power providers if you need extra help in figuring out which providers seem to be the best for you.

Microtransactions

Microtransactions are in-game purchases (ranging from a few cents to hundreds of dollars) that benefit the buyers by improving their gameplay. Although their relatively low cost may make them seem appealing, it's crucial to remember that they can quickly add up and significantly impact your budget if purchased frequently. Before making any in-game purchases, carefully consider your budget and whether they are truly necessary. While they may be a fun treat if you have extra money at the end of the month, it's likely that they can be avoided altogether. We recommend that you consider removing credit cards from your different accounts to avoid temptations. Alternatively, you can use Prezzy cards with a limited amount of money loaded onto them so there a limits that runs out. Many banking apps now offer trackers that let you see which websites or services are linked to your card and view the recurring subscriptions that are deducting money from your account.