Cases of online loans (pinjol) that ensnare many students lately prove a lack of financial or financial literacy. A dynamic lifestyle coupled with a lack of financial management knowledge makes it difficult for millennials to manage their finances. The term financial literacy is the ability of an individual to make decisions in terms of managing his assets or personal finances.

Knowledge of financial literacy is considered important for all people, including students. Students must have the knowledge and skills to manage their personal financial resources effectively and wisely, both for the short term and for the long term in order to achieve a more stable future. The higher the knowledge and ability of students in managing finances, the wiser they will be in making financial decisions.

Therefore, as a student, you must have knowledge in the field of personal finance because this knowledge will help students manage their finances in the future. Here are tips for increasing your financial literacy:

1. Create a Monthly Budget
   A budget is a financial plan created to estimate the amount of money coming in and out of your bank account in a certain period. You can make a monthly budget according to your priority scale, because this is important for monitoring all sources of income and your monthly expenses and avoiding excessive spending.
   The trick that you can apply is to use the 40-30-20-10 formula in a financial plan. 40% is the budget for daily needs, 30% for debt needs, 20% for investment and savings, and 10% for social needs.
    
2. Avoid Consumer and Paylater Debt
   Consumer debt is debt taken to buy goods or services that are not really needed, or to fulfill momentary desires. Students who are trapped in consumer debt can experience difficulties in developing savings habits and financial planning in the future. Don't be easy to use the paylater facility in an application. Take into account the interest and the total price that you have to pay using paylater payments because there will definitely be far more expenses that you have to pay.
    
3. Improving Investment Capability
   The increasing prices of goods and necessities make saving and investing very important for you to do early on. Therefore you can start learning about various types of investments such as stocks, bonds, and mutual funds. Also learn about the risks and potential returns of each type of investment. Even though you may not have a lot of money to invest right now, you can start to understand the basics of investing because it will help you prepare for the future.
    
4. Take advantage of Discounts or Promos
   Discounts can help you save money on various daily necessities such as food, clothing, or other necessities. By taking advantage of discounts, you can buy these items at a lower price, so they can save money on other needs.
    
5. Use Finance Apps
   If you have difficulty keeping track of your finances, you can use various financial regulatory applications. You can record all forms of transactions ranging from expenses, income, to making financial planning with applications installed on your gadget, such as the Wallet application, My Finance, Monefy, etc.