Nobody is born knowing how to handle money, and school rarely teaches it. These basics will help you from your first allowance to your first salary.
1. Know where your money goes
A budget is a plan for your money. Write down what comes in (allowance, bursary, wages) and what goes out. Then sort the spending into three buckets:
- Needs: rent, food, transport, data, study materials.
- Wants: takeaways, clothes, entertainment.
- Future: savings, emergency money, paying off debt.
Many people use a rough split of 50 / 30 / 20 as a starting point. Student budgets are tighter, so adjust it. What matters is that the “Future” bucket is never zero, even if it is R50.
2. Build an emergency fund first
An emergency fund is money you do not touch unless something unexpected happens, such as a broken laptop, a medical bill or a sudden trip home. Start small. One month of basic costs is a good first goal, and three months is better.
3. Saving versus investing
- Saving is for short-term goals and emergencies. The money should be safe and easy to reach.
- Investing is for goals more than five years away. It can grow more over time but it can also go down, so only invest money you can leave alone.
- Time is your biggest advantage. Small amounts invested early can grow a lot because the growth itself earns growth (compound interest).
4. Tax-free savings accounts
A tax-free savings account (TFSA) lets your returns grow without tax. As of 1 March 2026 you can put in up to R46,000 per tax year, and up to R500,000 over your lifetime. Going over the limits is penalised with a heavy tax, so keep track of what you pay in. Limits can change in future budgets, so check SARS for the current figures.
5. Be careful with debt
- Store accounts, credit cards and “buy now, pay later” feel easy but cost a lot in interest and fees. Read the terms before you sign.
- Only borrow from registered credit providers. You can check on the National Credit Regulator website. Unregistered loan sharks are dangerous.
- If you cannot pay, speak to the lender early instead of hiding.
6. Watch out for scams
- You never pay to apply for NSFAS or for a genuine bursary.
- Be suspicious of “guaranteed” returns, quick money and anyone who pressures you to act now.
- Never share your PIN, OTP or banking password with anyone, including people who say they are from your bank.
7. Earn more
Income is the other half of the equation. Tutoring, freelancing, selling products and part-time work all build skills and cash. See University Students for ideas.
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