Everyone needs a budget. That was the message given to final-year students at St. Monica’s College of Education at Asante-Mampong as they prepare to leave the classroom for the world of work.
Budgeting helps manage finances by allocating income towards expenses, savings, and goals.
Finance Officer of the College, Isaac Osei Kwarteng, explained that monitoring where money goes helps people understand spending patterns, identify short- and long-term goals, and separate expenses into needs and wants.
Because of common budgeting challenges such as unplanned purchases, irregular income, and balancing short-term wants with long-term needs, students were oriented to prepare them for life after school.
“Having gotten their first paycheck, they must know how to maneuver their way through so that they can be financially independent,” Mr. Kwarteng said.
He stressed that the orientation is important because it helps students design personal budgets by estimating their revenue and expenditure.
Mr. Kwarteng also introduced students to the 50/30/20 rule, where 50% of income goes to needs, 30% to wants, and 20% to savings or debt.
“So we told them that because of inflation and other issues, savings can easily be wiped off. That is why they must develop an investment culture, where a fixed amount is regularly deducted,” he added.
The students also learned budgeting techniques such as the envelope system – allocating cash to specific categories, zero-based budgeting – assigning every cedi a purpose and priority-based budgeting – focusing on high-priority financial goals.
They were advised to be realistic, flexible to allow for unexpected expenses, build an emergency fund, and plan debt management.
The final-year students described the event as eye-opening, saying they learned that budgeting varies depending on income, lifestyle, and goals.
Gloria Agyie Boama said, “I learnt basically one thing – the 50/30/20 strategy.” She admitted she used to spend without a budget, but now intends to prioritise budgeting.
Kessewaa Stephanie said she had little networking knowledge but the seminar gave her useful insights on how to connect with people.
For Rhoda Nyarko, she is now determined to compete in the outside world and achieve her personal goals.
The annual seminar, organised by the Social Science Department of the college, equips students with knowledge beyond formal education to prepare them for the world of work.
Head of Department, Bosco Aboagye, said the testimonies from students over the past four years motivate them to continue.
“Being in school is quite different from being out there as a teacher. When our students are about to leave campus, we introduce them to real-life issues they will face,” he explained.
He noted that the seminar also tackles issues such as marriage, travel opportunities, career paths, scholarships, and personal development.
Students’ Affairs Officer, Yaa Asantewaa Bediako, described the seminar as beneficial and said it equips students with lessons they will carry with them for years.
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