Early financial habits every student should start building today

Finance coach and advisor Margaret Njeri says that the best time to start saving is as soon as money comes in. Whether it’s pocket money, an allowance, or earnings from a side hustle, even small amounts teach discipline and set the stage for future financial stability.

Starting early, she explains, goes beyond building a bank balance, but it also teaches delayed gratification, responsible budgeting and financial discipline.

“Small, consistent savings today can grow into a cushion tomorrow paired with interest or safe investments,” she says.

Many students wonder how much they should put aside and Margaret recommends saving 20 per cent of every income.

She observes that the most common misconception students have is that they think they have to wait until they start working to start saving.

“Habits form now and waiting until adulthood makes saving harder,” she says.

Students can create a realistic budget using a simple notebook or a budgeting app by starting to track all sources of income: allowances, scholarships and freelance gigs, then listing regular expenses like food, transport and academic materials. She advises saving first and then spending later.

While saving comes first, she notes that students with a secure emergency fund can explore short-term investments. Fixed deposits of three to twelve months offer safe growth, while micro-investing apps allow students to invest tiny amounts in money markets.

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She encourages students to open a student savings account or activate a digital wallet. Start small and over time, it accumulates into a strong foundation. When choosing accounts, she advises student-friendly options with low fees, no minimum balances, and mobile accessibility. SACCOs and money market fund accounts are also practical for disciplined saving, she says.

For higher yields, digital platforms such as M-Shwari and KCB M-Pesa savings apps are convenient, mobile-friendly and more rewarding.

Earning while studying

“Students can get into side hustles like tutoring, online freelancing, reselling, content creation, delivery services, or campus-based services like printing and laundry to supplement income and boost savings,” she says.

To handle irregular expenses, such as trips, exams, or emergencies, she suggests a sinking fund—setting aside a little each week or month to cover planned future costs. She says this prevents last-minute stress and keeps finances predictable. Margaret notes that students usually receive money from scholarships or freelance work.

“Treating these like a steady income, like budgeting first and saving before spending, helps avoid the temptation to splurge,” she says.

Navigating peer pressure

Social spending affects financial discipline, says Margaret. She recommends declining activities outside their budget and suggesting low-cost alternatives.

Students can make saving fun by using challenges like ’50 bob a day’ or ‘no-spend weekends’ and reward themselves with small treats when they hit milestones to reinforce motivation, Margaret encourages.

According to the expert, habits formed in student life can have a lasting impact. It sets the foundation, and a student who budgets, saves, and is financially aware becomes a financially stable adult. One can plan for unexpected expenses or emergencies by building a small emergency fund that can cover transport, health, or urgent needs.

“They can reduce expenses without compromising quality of life by carrying lunch, sharing transport, limiting impulse online shopping, and taking advantage of student discounts,” she advises.

Margaret maintains that education is a priority investment, yet she advises saving even a small portion of income to prepare students for financial independence.