Starting college or university is an exhilarating journey filled with new opportunities and responsibilities. Among these responsibilities, managing your finances can be a bit daunting. In this article, we’ll guide you through essential steps to make your money last throughout the term.
1. Create a Solid Budget Plan
Budgeting is the cornerstone of financial success as a student. Take stock of your income sources and all anticipated expenses, including accommodation, bills, groceries, transportation, and social activities. Utilize the free budget planning tool on the Government-backed MoneyHelper website to kickstart your budgeting process.
2. Break Down Your Expenses
To manage your finances effectively, break down your estimated weekly or monthly expenses. This approach helps when you receive significant sums like loans or grants. Ruki Heritage, director of student experience at the University of Bedfordshire, suggests practical money-saving strategies. Consider bulk-buying groceries, cooking in groups, and utilizing student discounts. Buying textbooks from fellow students can also save you a bundle.
3. Explore Part-Time Work
Consider getting a part-time or weekend job to supplement your income and gain valuable work experience for your CV. Your university may have a careers and recruitment page with term-time job listings. Strive for a balance between work and study, aiming for no more than 10 to 15 hours per week.
4. Seek Financial Support
Don’t hesitate to explore the financial support options your university offers, such as hardship funds and bursaries. The criteria for eligibility should be readily available, but if you have questions, don’t hesitate to ask.
5. Socialize on a Budget
Building friendships doesn’t have to break the bank. Join university societies or sports teams to meet new people. Organize low-cost activities like picnics or park strolls with your flatmates or coursemates. Most towns offer free local activities, such as museum exhibitions and music festivals. Look for student discounts and activity passes to reduce costs further.
6. Choose the Right Student Account
Selecting the right bank or building society for your student account is crucial. HSBC UK and Nationwide Building Society offer interest-free overdrafts of up to £3,000 by the third year. Be cautious about accumulating unnecessary debt and remember that it must be repaid eventually.
7. Explore Banking Perks
Many student account providers offer cash incentives and additional perks, subject to specific terms and conditions. Evaluate the benefits carefully and ensure you’ll use them regularly to make the most of your account.
8. Embrace Mobile Budgeting Apps
Stay on top of your finances with mobile budgeting apps that track your spending. Some apps can automatically transfer money into your savings account, helping you build a financial cushion.
9. Consider Insurance
Protect your valuable possessions by considering insurance. Gadgets, bicycles, and even trainers can be covered. Graeme Trudgill, CEO of the British Insurance Brokers’ Association, recommends checking your parents’ home insurance policies for potential cost-effective coverage. Pay attention to the policy’s terms and conditions, especially regarding theft and proof of ownership.
10. Manage Your Excess
Finally, if your insurance policy has an excess (a deductible amount deducted from a claim), you may enjoy lower premiums. Carefully assess your insurance needs and choose the right level of excess for your circumstances.
Navigating student finances can be challenging, but with careful planning and prudent choices, you can enjoy your college or university life without financial stress. Make the most of available resources and embrace smart financial habits to ensure a smooth financial journey during your academic years.