Top 10 Tips on How to Save Money as a Student in Malaysia

Embarking on the path of higher education in Malaysia is a thrilling venture. It's a time of personal growth, expanding horizons, and nurturing your dreams. However, it often comes with significant financial challenges. From tuition fees to daily expenses, a student’s life can be financially taxing. This is precisely why understanding how to save money effectively is crucial.

In this article, we will explore ten practical tips tailored to students in Malaysia, helping you make smart financial choices and empower your student life with financial security and independence.

How to Save Money for Students

1. Create a Realistic Budget

Your journey towards financial stability starts with creating a budget. This is your financial roadmap, helping you navigate the intricacies of managing your money. Begin by listing all your income sources, including any allowances or part-time job earnings.

On the other side, detail your potential expenses, from tuition fees and textbooks to accommodation, food, and leisure activities. This budget will be your guiding light, enabling you to allocate your funds wisely and ensure you're not overspending.

2. Explore Student Discounts and Offers

One of the fantastic benefits of being a student in Malaysia is the availability of exclusive discounts and offers. This includes student-specific deals at local stores, discounts on public transport, and special promotions at eateries. These opportunities are not only a way to alleviate the financial burden but also part of the perks of being a student.

To access these discounts, make sure to carry your student ID with you. It's your golden ticket to saving money.

How to Save Money as Students in Malaysia with Discounts and Offers

Source: Freepik

3. Minimise Accommodation Costs

A significant portion of your student expenses goes towards accommodation. To make it more affordable, consider options like on-campus dormitories or shared apartments with roommates. These options tend to be more budget-friendly than renting a single apartment. Additionally, explore strategies to save on rent and utilities. Simple steps like being mindful of your electricity and water usage can lead to substantial savings.

4. Cook Meals at Home

Eating out frequently can quickly deplete your funds. A pocket-friendly alternative is cooking your meals at home. Not only does it save you money, but it also allows you to have better control over your nutrition.

To make it even more manageable, look for easy and affordable recipes tailored for students. With a bit of culinary adventure, you can discover delicious dishes that won't break the bank.

Another money-saving and enjoyable option is to make cooking a fun activity and share the expenses with your fellow roommates or housemates by cooking together. This not only reduces individual costs but also improves bonding and fosters a sense of shared responsibility.

5. Use Public Transport or Carpool with Friends and Share the Cost

Getting around in Malaysia can sometimes be a costly affair, especially if you rely on personal transport. Public transport is not only cost-effective but also environmentally friendly. Explore transportation discounts available for students, as they can significantly reduce your commuting expenses. Be it buses, trains, or trams, they offer a reliable and affordable means of travel.

Another money-saving option is carpooling with friends or fellow students. By sharing rides, you can distribute the cost of fuel, tolls, and parking fees among yourselves. This not only reduces individual expenses but also helps to decrease the overall environmental impact of transportation. Carpooling fosters a sense of community and shared responsibility while providing a more budget-friendly alternative for getting to your destinations.

Saving Money As A Student By Taking Bus to University

Source: Freepik

6. Buy Second-Hand Items and Share

When it comes to textbooks, household items, or even clothing, buying second-hand can be a game-changer for your finances. Look for local stores or online platforms where you can find pre-owned items at a fraction of the cost.

You can also consider buying generic brands, which are often cheaper than their branded counterparts. Thrift stores and online marketplaces can also be treasure troves for budget-friendly items. By implementing these shopping tips, you can stretch your budget and make your money go further.

Furthermore, sharing resources with roommates or friends can also lead to substantial savings. For instance, you can split the cost of a Netflix subscription or share kitchen appliances, reducing individual expenses.

8. Part-Time Jobs and Scholarships

Taking up a part-time job while studying can be a win-win situation. Not only does it provide you with extra income, but it also offers invaluable experience you can add to your CV. Explore the numerous part-time job opportunities for students in Malaysia, such as working in cafes, tutoring, or freelancing.

Additionally, delve into the world of scholarships and grants. Many institutions and organisations offer financial aid to students. This can significantly reduce the financial burden of education.

Other than that, accumulating student debt can be a heavy burden that follows you long after graduation. It's essential to understand how to avoid this pitfall. So, options like scholarships, part-time work, and budgeting can reduce your reliance on loans. Student loans can have long-term financial consequences, so it's best to keep them to a minimum or avoid them altogether.

Tutoring Peer Students in University to Earn and Save Money

Source: Freepik

9. Savings and Future Planning

While managing your current expenses is crucial, don't forget to think about your financial future. Allocate a portion of your earnings to savings, even if it's a small amount. This will accumulate over time and serve as a financial safety net.

Additionally, developing wise spending habits now will ensure that you are well-prepared for the future. Learning how to manage your finances as an undergraduate is a skill that will serve you well throughout your life.

10. Utilise Money Management Tools or Platforms

In today's digital age, students in Malaysia have the advantage of harnessing the power of money management tools and platforms to maximise their savings. These tools come in the form of mobile apps and online platforms designed to help you track, budget, and save your money more effectively.

With these applications, you can easily monitor your spending, categorise expenses, and set saving goals. Some platforms even provide personalised financial advice to assist you in making informed decisions. These digital companions can be your best friends when it comes to staying within your budget and avoiding unnecessary expenses.

You can explore Pod App, a financial planning and money management app in Malaysia, to plan your budget and save money effortlessly.

Incorporating these ten money-saving tips into your student life in Malaysia will not only ease your financial burdens but also set you on the path to financial independence.

At the same time, it is important to build your financial literacy as an investment for your future. There are various educational resources and tools designed specifically for students. These resources can help you understand the principles of personal finance, budgeting, and investing.

Being financially literate empowers you to make informed decisions about your money and paves the way for a secure financial future.

  • The Back Negara Malaysia’s Financial Capability and Inclusion Demand Side Survey revealed that 74% of Malaysians utilize digital financial services for digital payment as well as keeping track of their spending and savings.

    Yet, more than half, specifically 52%, of Malaysians aged 18 and above have yet to commence their investment journey.

    Additionally, it's noteworthy that a majority of Malaysians, precisely 70%, set aside less than RM500 per month.

  • The most secure channels for storing your funds are savings accounts, certificates of deposit (CD), or government-backed securities. Optimal choices could be those that not only offer superior returns compared to standard savings accounts but also strike a balance between liquidity and stability.

  • Students can explore several ways to make money while balancing their academic commitments. Here are some ways to earn extra income:

    Part-Time Jobs: Many students take up part-time jobs, such as working in retail, food service, or as tutors, to earn money. Look for opportunities that align with your skills and schedule.

    Freelancing: If you have writing, graphic design, programming, or other skills, consider freelancing. Platforms like Upwork and Fiverr can connect you with clients seeking your services.

    Online Surveys and Market Research: Participate in online surveys or market research studies to earn small sums of money or gift cards. Websites like Valued Opinions and Surveytime offer such opportunities.

    Campus Jobs: Check if your university offers on-campus job opportunities for students. These roles can be convenient and flexible.

    Internships: Some internships are paid, providing students with valuable work experience while earning money.

    Sell Items: Declutter your belongings and sell items you no longer need online through online marketplaces like Mudah, Carousell, or Facebook groups.

    Tutoring: If you excel in a particular subject, offer tutoring services to fellow students who need assistance. This can be a lucrative way to earn money while helping others.

    Gig Economy Jobs: Consider gig economy jobs like food delivery rider with ShopeeFood or e-hailing services with Grab if you have a vehicle and some spare time.

    Pet Sitting or Babysitting: Providing pet-sitting or babysitting services can be a flexible and rewarding way to earn extra income.

    Content Creation: If you're skilled in content creation, start a blog, YouTube channel, or podcast. You can monetize these platforms through advertising, sponsorships, and affiliate marketing.

    Sell Handmade Items: If you're crafty, sell handmade items on platforms like Etsy or at local markets.

    Photography: If you're a photography enthusiast, consider selling your photos on stock photography websites.

    Online Writing and Blogging: If you have a passion for writing, consider starting a blog or contributing articles to websites that pay for quality content.

    Remember to balance your work commitments with your studies and personal life to ensure a successful academic and financial journey.

  • Employees Provident Fund (EPF): Even if you're currently making contributions to your EPF savings through your employment, you still have the option to boost your savings using the Self Contribution scheme, with an annual limit of up to RM60,000. If you're not formally employed, you can contribute through EPF i-Saraan.

    Amanah Saham Bumiputera (ASB) / Amanah Saham Malaysia (ASM): ASB and ASM represent unit trust funds overseen by Amanah Saham Nasional Berhad, which operates as a subsidiary under the government-linked investment firm, Permodalan Nasional Berhad (PNB). ASB is exclusively open for investments by Malaysian Bumiputeras, while non-Bumiputeras have the opportunity to invest in ASM.

    Money market or cash management fund: These are unit trust funds that encompass short-term loans to banks and government entities. Additionally, these funds retain fixed deposits from financial institutions. Due to their focus on swiftly maturing, high-quality investments, the level of risk associated with these funds remains exceptionally low.

    Bonds: A bond represents a debt security issued by governments or businesses seeking to generate capital. When you acquire a bond, you're essentially extending a loan to the issuer. In return, the issuer commits to disbursing a predetermined interest rate at specific intervals, such as semiannually.

    Although bonds typically present lower investment risk, the level of risk can vary based on the issuer. Each bond receives a rating that assesses the issuer's ability to meet its bond repayment obligations.

  • Young students exposed to lessons on budgeting, saving, and investment tend to exhibit a greater propensity for prudent financial choices in their later years. This understanding equips them to steer clear of debt traps and excessive spending. By imparting financial literacy to students, educational institutions are paving the way for their prosperous financial futures.