Student Money Management

Financial management as a student is one thing that you probably can't be bothered to think about right now, however spending a few minutes reading through our handy guide to managing your finnces will reap rewards later on down the line. Debt is a way of life for many students these days but there are ways to minimise your chances of carrying unmanageable debts into your future working life.

First of all, make sure you are getting all the money you are entitled to. Apply to your Local Education Authority to be assessed for a student loan and a contribution towards your tuition fees. If you have been living in Wales prior to the start of your course, find out if you are eligible for an Assembly Learning Grant.

Shop around for a decent student bank account. Don’t be tempted by the freebies on offer, the most important aspect of the account is the interest free overdraft facility. Only apply for a single student account, as it is much easier to manage if all your money is going in and out of one account. Try to choose a bank with a branch within the locality of your university. If the branch has a Student Advisor you are more likely to get a sympathetic response if you encounter problems.

Try to avoid the temptation of applying for credit cards and store cards. The interest on these cards makes it one of the most expensive ways of borrowing money.

Work out a budget of your income and expenditure. If it is obvious that you are not going to be able to manage, think of ways in which you can supplement your income. Most universities will have a Job Shop for students, either within the Careers Service or the Student Union, so contact them if you need to find part-time work.

If you are finding it really difficult to manage, explore the possibility of applying for a Hardship Loan or if studying in Wales, to the university’s Financial Contingency Fund (Hardship Funds in England). Most universities will have Financial Advisors that can talk you through the application process.

Prioritise your debts. It is obviously important to keep a roof over your head, so make sure that your rent is paid on time. If you are going to be late paying creditors let them know rather than ignoring their letters. If you can’t pay the whole amount, pay what you can afford as a gesture of goodwill.

Be wary of taking on any long-term commitments as a student. Buying a car or a state-of-the-art computer can prove to be a very big drain on your resources.

Try to avoid mobile phone contracts. Pay as you Go phones will help you to keep track of how much you are spending. It’s good to talk, but remember it can be expensive!

If you do get into financial difficulties seek help sooner rather than later.

The biggest danger for overspending is in the first term. Don’t be tempted to buy designer clothes, 20 CD’s or loads of beer when you have the just had the first instalment of your student loan. Wait until the end of term, if you still have the money!

 

Read Part 6 Student Living Expenses