Expert money tips for students and graduates

Whether you’re a university student trying to make the most of life on a student budget or a new graduate figuring out what to do with your new salary, it can be tough to make smart money choices. 

Luckily for you, MAS has a brilliant team of Student Advisers who have a wealth of experience helping university students and graduates take control of their finances. We asked them to share some of their top tips for young people wanting to smash their money goals. Our Student Advisers can talk over your insurance options and future finances, and they’re available for free, no-obligation reviews with all students and grads.

Set up a student-friendly budget

The most important thing for students and graduates to do is sit down and make a basic budget that isn’t too strict and you can actually stick to. 

Make sure you cover all your essentials and allocate money for fun stuff too. A budget isn’t supposed to be a struggle to stick to; it should reflect how much you actually spend. 

MAS Student Adviser Crystal Wildey says once you graduate and start working, it’s sensible to create a budget to manage your new salary or wages. 

“If this is your first full-time job, then it's a great idea to make a budget to see where you'd like to allocate your funds. I highly recommend the Sorted budget tool as it gives a great visual representation of where your money is going, and you can easily adjust the figures as you go.” 

Update your budget when things change

MAS Student Adviser Debbie Guest recommends updating your budget annually, or when your circumstances change.

“Update any budget you compiled when you started studying or at the beginning of this year, with any changes to your income and your outgoings for next year – this is especially relevant if you are moving from halls to flatting,” she says. 

“Different study years can carry different costs, for example if you’re attending placements, and this could impact your ability to work too.” 

Actively choose a KiwiSaver Scheme fund that works for you

A lot of us stay in the KiwiSaver default fund that we’re automatically enrolled in when we first start working, although these aren’t necessarily the fund types that best fit our financial goals and timelines. MAS Student Adviser Alex Court is always keen to see students make smart KiwiSaver scheme choices while they’re young. 

“Your KiwiSaver account is something that can chug away in the background, even while you're studying. Let your money grow while you finish your degree. The biggest factor in saving and investing is time, so take advantage of it.”

MAS Student Adviser Jarrad Booyens agrees that it’s important to pick a KiwiSaver scheme fund that’s right for you. “It may seem like it's not necessary now but it will be one less thing to do before you start work at the end of your studies,” he says. 

Make the most of your KiwiSaver account contributions

The employer and government contributions to your KiwiSaver account are key to making the most of the KiwiSaver scheme while you’re studying, says MAS Student Adviser Dan Johnson. 

“Make sure you maximise the government’s contribution to your KiwiSaver account every year, and take advantage of the 3% contribution that employers will match – these can be powerful forces for growing your balance.” To check whether you’re on track to meet your goals, try MAS’s KiwiSaver retirement calculator. 

Keep an eye on your spending over holidays

Otago MAS Student Adviser Angie Brown encourages students to “try not to go too crazy with their earnings” if they’re working over holiday breaks. 

“Do what you can to put money aside into savings to assist with your next year or studies – your future self will thank you for it. Many people have even set up accounts with a different bank that they can regularly transfer money to but can only access by physically going into the bank branch.” 

Make sure everything is sorted when you move flats 

Debbie Guest says things can be forgotten when moving out of flats, such as forgetting to close accounts or pay final bills, which can cause problems down the line. 

“Make sure everything is up to date with any flat account and costs before you leave your study location – you don't want any bills following you when you say goodbye to your student flat,” she says. 

Have a free grad review with a MAS Student Adviser

The best advice you can receive is advice that’s tailored to your personal situation. All graduates could benefit from meeting a MAS Student Adviser for a free, no-obligation review. They can talk over your individual situation and financial future, and help you find insurance options that can support your goals. 

Make an appointment with a MAS Student Adviser today.