Budget breakdown: How students should spend HELB loan wisely

Students should avoid misusing HELB loans by budgeting properly. Misusing these loans can lead to financial struggles, poor academic performance, and even the inability to repay the loan after graduation.

It’s alarming to see how some campus students misuse their HELB loans for gambling, sports betting, luxuries, entertainment, and supporting their partners. This careless use can have financial ramifications, so students must adjust their spending habits to avoid these problems.

First and foremost, students must prioritize their academic demands. After all, their education led them to higher education institutions. They can prevent bad performance by investing in educational materials such as books, laptops, and lab coats.

Secondly, students should spend wisely on accommodation and food to ensure they do not run out of money. For instance, one should plan for the necessities that fit within his or her budget, depending on his or her background. For example, one can decide to live in a simple or extravagant house rather than an expensive one to avoid financial struggles.

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Many students are tempted to buy unnecessary and expensive items. Therefore, they must avoid the temptations of impulse purchases and peer pressure. Instead, they should plan their purchases and avoid peer pressure, knowing everyone’s financial situation is unique.

Furthermore, budget and track expenses. Students should budget and track expenses before doing anything. One should take time to draft their budget. For example, one should plan that this amount would be used to pay rent, fees, food, and the other for transport. Through doing this, one cannot spend anyhow on what was not planned for unless otherwise

Nevertheless, consider small investment. Students should consider small investments like starting a small business on the side or doing online writing that cannot interfere with academic activities. This will ensure at least they have something in their pockets that can help with foodstuff and other little expenses.

Loan repayment

Moreover, plan for loan repayment. Students should consider that the Helb loan must be repaid after graduation. They should plan for these by saving a little and securing jobs to avoid stagnating in the future and mitigate repayment struggles.

Lastly, avoid borrowing or gambling. Students should avoid borrowing and sports betting since it is addictive and might cause them to suffer high losses.  This might likely lead to stress and suicide. Imagine a case where you lost all the money you had in gambling or “mining money”.  Borrowing also should be avoided since it comes with high interest.

In conclusion, by implementing measures like spending wisely, avoiding peer pressure, proper budgeting, small investments, and avoiding gambling, students will make good decisions and avoid misusing health funds for unnecessary things.

Faith Oloo

Oloo is a student at Rongo University.