TO: All First-Year Students in Lesotho Tertiary Institutions

Welcome to a New Chapter in Life

Congratulations on embarking on this exciting journey of tertiary education! This
phase of your life is filled with opportunities for growth, learning, and personal
development. Whether you’re staying on campus or commuting, your time at college
will be transformative in many ways.

Embrace Independence
For many of you, this will be your first experience living away from home. Embracing
independence means taking responsibility for your daily life, from managing your
time to handling your finances. This newfound freedom can be exciting, but it also
comes with challenges. Learning to balance your academic responsibilities with
personal life will be key.

Entering college is an exciting milestone, but it often comes with financial challenges.
Here's a practical guide to help you manage your finances effectively while focusing
on your studies.

Start Planning a Budget

For many young adults, going to college marks their first experience of living
independently and managing their own finances. Mastering the skill of budgeting is
essential, as it will be crucial throughout your life. For this purpose, first year
students are encouraged to prepare 2 budgets, initial budget comprising expenses
for covering their first activities and monthly budget comprising their monthly
expenses.

1. Plan Your Food Budget

• Buying meals outside can be more economical if planned properly. Here’s how to
  manage your food expenses:
  Monthly Food Budget: Estimate how much you’ll spend on food each month.
  o Example: If you plan to spend M50 per day on food, your monthly
  budget would be around M1500.
• Affordable Places to Eat: Identify affordable street vendors, and food markets near your campus.
• Bulk Buying: Purchase non-perishable items in bulk to save money.

2. Practical Tips for Eating on a Budget

• Meal Planning: Plan your meals for the week to avoid impulse buying and
  reduce waste.
• Healthy Eating: Balance your diet with nutritious options to maintain your
  health and energy levels.

3. Create a Detailed Budget

Here’s how to set up a budget specifically for your situation:

• Income: List all sources of income, including allowances, and NMDS income.
• Fixed Expenses: Identify your fixed assets and plan for them first.
• Variable Expenses: Include your food budget, and other personal expenses.
• Savings: Set aside a portion of your income for savings and emergencies.

4. Additional Tips for Financial Management

• Track Your Spending: Use a budgeting app or a simple spreadsheet to track daily expenses.
• Adjust as Needed: Review your budget regularly and make adjustments if you’re overspending in certain areas.
• Seek Financial Advice: Don’t hesitate to seek guidance from financialadvisors or counsellors at your institution.

By carefully planning your food and overall budget, you can make the most of your college experience while managing your finances effectively. Enjoy your time at
college and make the most of the opportunities available to you!