With everyday bringing new bad news in the economy due to the COVID-19 pandemic it is worth considering how you can change your financial management practices to prepare for the uncertainty students and families are facing. Many students are affected by the loss of a job or the disappearance of a summer internship and certainly will feel the financial impacts for the coming months.
With the reduction in income many students are facing, many of your peers may be dipping into savings or watching their bank account dwindle. There are Ohio State resources available to support you through hard economic times including the student emergency fund and Buckeye Food Alliance, an on campus food pantry. Students may also qualify for unemployment or other benefits. Those who are still working should consider establishing an emergency fund to help offset future economic hardship like loss of income. Since there is no end date to this crisis, start considering how you might deal with future financial issues even if you have not yet been affected.
Focusing on reducing expenses will help stretch your remaining income or savings as far as possible. Expenses can be broken into three categories. Fixed expenses are those that are consistent monthly because of a contract like rent or an installment loan. Variable expenses are most of your discretionary expenses like entertainment, food purchases, and gasoline. The final category is irregular expenses, those that are not necessarily predictable like medical expenses and auto repair.
As most fixed expenses cannot be readily changed, there is not much you can do about them in the short run. However, it would be a good idea to avoid committing to a new lease or borrowing for a large purchase like a car until you’re on more confident financial footing. Variable expenses are those that you can influence most in the short run and the most promising way to make your money stretch. It’s important to practice self-care and continue to have fun but you should consider what tradeoffs you’re willing to make to reduce spending. Irregular expenses may not necessarily be controllable, but it’s important to continue to think about how to include these into your projections so that an unexpected auto repair expense or medical bill won’t make things worse. If you’re unsure how to budget for something like this, consider looking over your historical expenses to establish a baseline cost.
As always, the student wellness center is available to support you through any difficulties financial or otherwise. Financial coaching is currently available via zoom where you can work with an extensively trained coach to make a plan to persevere through challenging financial times.
Links to resources:
Together As Buckeyes Grant: https://sfa.osu.edu/contact-us/consumer-disclosure/COVD-19-aid
Student emergency fund: https://advocacy.osu.edu/student-emergency-fund/
Buckeye Food Alliance: https://www.buckeyefoodalliance.org/
Student Legal Services https://studentlegal.osu.edu/