Student Finance
Being a student can be expensive, especially if you are living away from home too. Here are some tips on how to manage your money, and still enjoy yourself!
Check your bank balance
It can be scary to look at how much (or little) money you have. But it is where to begin when trying to organise your finances. Do keep a close eye on your bank balance. Most banks now offer online banking so it is very easy to check your balance regularly. They are very secure, and password protected. It is especially good to do this if you buy things online, as you don’t want to miss if someone is trying to defraud you out of your hard-earned cash!
Budget
Boring I hear you say? Yes it is boring. But it is also what you need to do in order to live independently and still be able to afford to have nights out with your friends. To begin with you should take a little notebook with you for a week and write down everything you spend money on – everything right down to the packet of chewing gum you bought. You’ll be surprised at how much it all adds up to! Then you should write down a list of everything you have to spend on a month i.e. rent, transport, direct debits, and compare it to how much you earn or receive in a month.
Use the suggested list below:
Income
Where do you get your money from (per month)?
Bursary/Student Loan (per month) ……………………..
Job (per month) …………………………………………
Parents/Other (per month) ……………………………....
Any other income (per month)…………………………..
Outgoings
What do you spend your money on (per month)?
Accommodation…………………………………………..
Travel……………………………………………………
Food…………………………………………………….
Bills (electricity/gas)……………………………………
Mobile Phone……………………………………………
College Supplies (books etc)……………………………
Socialising………………………………………………
Clothes………………………………………………….
Toiletries……………………………………………….
Other……………………………………………………
If you had an unexpected bill to pay how would you pay for it?
Savings? Credit Card? Loan?
• At the end of this you should be able to see whether you are going to be in credit or debt at the end of the month.
• If you are in credit, great!
• You should open a savings account to save this in.
• You can open an Individual Savings Account (ISA) at most banks and building societies. This means you can save up to £3600 per tax year without paying tax on it. Be aware however that the ones with the best interest rates however may limit you on how often you can take your money out without a charge. Your bank should be able to advise you what is best for you.
o If you have any debts on credit cards, you should use your excess money to pay this as the interest rates are usually very high.
If you are in debt, don’t despair!
• Assess to see how much debt you are in. If you are only marginally going to be in debt after budgeting every month, is there somewhere you can cut back on? If you pay expensive gym memberships, can’t you go for a run in the park or use the College or City leisure facilities? Can you get a better deal on your mobile phone?
• Look at other ways to extend your income. Can you get a job, or extend your hours during your holidays? Remember that your College work should be your first priority.
• Make sure you are getting good use out of your Student Card. Look for deals where you can get a student discount, such as cinema tickets. Also if you buy a monthly pass for the bus you should be able to get a student rate. Likewise if you are a full time student you could get a Student Railcard for use on the trains.
• You may be entitled to a Student Overdraft facility. An overdraft is when your bank will grant you a certain amount to go over your bank balance. You normally get charged if you go into your overdraft, however some students (HND students) may be able to get a Student Account and overdraft facility at their bank. You would need to ask at your local branch if you need more advice.
• If you are severely struggling with debt, then you can see the Citizen’s Advice Bureau. They are based at 41 Union Street (near the First Bus Office).
This is their website http://www.cas.org.uk/WebOfficeDetails.aspx?id=3
• For more advice on student finance, see this website
http://www.student-finance.co.uk/accounts/overdraft.htm