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Information on personal money management for undergraduate students
Introduction
Please note that this is a specialist area and there is no substitute for financial advice from the appropriate public, private, and voluntary agencies with responsibilities in the field.
Banking
It is desirable these days for an undergraduate to have a bank account at a high street bank or building society. There are different sorts, and some of the better ones pay you interest.
Student loans are now only paid by the Student Loans Company (SLC) to the student’s bank account via the BACS system.
Banks can also help with such matters as overdrafts and loans, as well as personal money management advice.
You must check all the scheme details before you borrow any money.
Many banks/building societies provide free incentives for students to join them, so it pays to shop around.
Proximity to the student campus or your accommodation is also a relevant factor.
You may wish to consider using a debit card, which allows you to pay for goods and withdraw money from your account, but try to avoid credit cards, which encourage you to borrow at high rates of interest. Make sure your card is insured against loss and theft.
If you have a cash crisis, do see them without delay before things get worse.
Costs of living at University
It is perhaps misleading to give illustrative figures in a document such as this, because these can change rapidly, differ a lot between universities, and also at a particular university, depending on the type of accommodation.
Generally university halls of residence are the cheapest, then university self-catering flats, with privately rented flats the most expensive. Costs can often be shared by renting with friends.
It is advisable to obtain full and up-to-date information from your own university accommodation office at an early stage prior to starting your course.
Whilst in residence at university you may well find it necessary/desirable to move your accommodation almost annually. Search and application need to be conducted carefully and at the right time to reduce the competition.
In addition to accommodation costs you will need to identify and budget for any additional university costs, apart from annual fees. These will vary among institutions, and also between courses, but could include such items as:
laboratory fees, specialist clothing, field trips, academic dress, student union dues, club subscriptions, meal tickets, social events and equipment, as well as books and study materials, including photocopying. Many of these will be initial charges, coming at the start of the course or academic year.
Eating arrangements, whether full-board, half-board, kitchen or none, will obviously have a bearing on food costs, as will your selection methods in shops and supermarkets.
Travel costs can be an important consideration, both to and from home, for trips away, and within the university and locality itself. Road and rail travel discounts are often available for students.
Clothing and entertainment are other significant items of expenditure to cost, as well as laundry and toiletries, lighting, water, electricity/gas.
Budgeting
Budgeting is essential. In principle it is easy. You work out a monthly account, listing your income and expenditure. The hard part is to ensure that you do not spend more than you have.
Standard budget calculators, which list the main income and expenditure items, are available from some sources of information and advice listed in the leaflet. These can easily be adapted to your own needs.
Money-Saving Ideas
It is important to try and economise. Develop a habit of mind which looks to saving money wherever possible. Credit Action’s “Money Manual for Students” has many useful tips.
Money Worries and Debt Management
It is vital to seek help and advice at an early stage before matters get out of hand. Appropriate sources to turn to can include your family, LEA, bank or building society, your friends, the Student Union Welfare Officer, Advice Agencies, and even those to whom you may owe money.
The UK Insolvency Helpline – 0800 074 6918
Free national debt advisory service
http://www.insolvencyhelpline.co.uk/
Sources of Information and Advice
“Student Life – A Survival Guide” – helps students to budget and make the most of their time as students.
Published by Lifetime Careers Wiltshire Ltd
Website: http://www.lifetime-publishing.co.uk/
Available by post from:
Orca Bookservices Ltd, Unit A3
Fleets Corner, Poole, Dorset BH17 0HL
Telephone: 01202 665432
www.orcabookservices.co.uk
“Students’ Money Matters" by Gwenda Thomas.
Published annually by Trotman
This is comprehensive. It also covers alternative sources of funding.
www.trotman.co.uk
"Money Manual for Students" by Keith Tondeur.
Publish by Credit Action.
Howard House, The Point,
Weaver Road, Lincoln, LN6 3NQ
Credit Action Helpline: 0800 138 1111
Download for free from Credit Action
Consumer Credit Counselling Service (CCCS)
Wade House, Merrion Centre, Leeds LS2 8NG
Telephone: 0800 138 1111
Website: http://www.cccs.co.uk/
CCCS is a specialist organisation which provides free money management assistance and confidential counselling to the financially distressed, including those in debt. |