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Money Tips

Student Money Saving Tips

Student Money Saving Tips

Category: Students
Date: 9/12/2011

It's not all caps and gowns and bicycles with textbooks underarm, nor (unfortunately) is it an episode of Hollyoaks! The reality of university life sits somewhere in the middle: hard work yes, but also a fun time. Part of the fun is derived from the freedom – it will probably be the first time that you will live independently away from your family. But with great power comes great responsibility and aside from the newfound joys of cooking, washing and cleaning, you also need to learn quickly how to manage your student finances.

Sort your Student Loan early

You can tell who they are; hanging around the SU bar with a placard "will work for Snakebite and Black" – they are the students whose loans haven't come through yet because they left applying for them a little too late. It happens every year – don't be one of them! Apply for your student loan as soon as you can to avoid a difficult first few weeks.

Student Current Accounts

After sorting your Student Loan, getting a Student Current Account should be your next priority. Many of these offer an interest-free overdraft for the duration of your studies, which will work out considerably cheaper than more expensive forms of borrowing such as a credit card. Careful though – whatever you borrow, even if it is interest-free, still needs to be paid back eventually.

Plastic not so fantastic

Steer clear of any plastic debt if possible. This includes credit cards, but also store cards. Store cards are credit cards - don't get sucked in to taking out more debt. Consider taking out a prepaid card instead. Read our tip 'Who and what is a prepaid card good for?'

Save!

Save? Yes save! Over the summer aim to save as much money as you can. For most students debt is an inevitable side-effect of the university experience, but minimising your debt should be a priority. In particular try to have a little money set aside for the beginning of the semester, when social costs and study materials will drain your resources. Research the best savings accounts here.

Budget

Sit down and work out a budget with your income on one side (student loan, allowance from mum and dad, wages) and your outgoings (accommodation, food, study materials, TV licence, bills etc.). It may seem quite depressing, and you may have to accept that you have to dip a little further into the overdraft each month, but you are better to plan ahead and know exactly what you are spending rather than burying your head in the sand.

Freshers' week

There's no denying that Freshers' week is one of the best times at university; but minimise the hangover to your wallet by doing the following:

  • Set yourself a mini-budget just for Freshers' week and stick to it. As previously mentioned, save up beforehand if you really want to go for it in the first week, so you don't blow your Student Loan or max out an overdraft or credit card.
  • Don't join lots of societies in your first few days of arriving at uni. Chances are you'll pay the membership fee and then never go if you join on impulse. By all means join a couple of societies, but consider your choice carefully.
  • Party Smart. Partying smart doesn't mean you can't party hard, but choose your battles. There will be lots of parties and events – you don't have to be everywhere!

Get a job!

Lots of savvy students augment their income early by acquiring a part-time job. It doesn't need to affect your studies or social life in a negative way, but will most definitely have a positive effect on your bank balance and give you some much needed work experience. Don't work too much though; remember your focus is to study, so make sure you limit your hours. Take a look at these useful links for details about finding a student job:

NUS card

Your NUS Card is a powerful ally in the quest to save pennies. It will get you discounts at many leading high street and online retailers as well as certain cinemas, restaurants and taxidermists. Even if a discount isn't advertised there might well be one. So always ask.

Travel

If you're not careful, bus and train fares could soon start chipping away at your loan, so:

  • Walk or cycle where you can. It's kinder to the environment, healthier for you and even healthier to your finances.
  • If you have to make repeated trips on public transport in any one day or week or semester, investigate whether it's cheaper to get a multi-trip or season ticket.
  • Book your train journeys home early, you can often get cheaper train tickets doing it this way. Check individual rail company websites for information about when their Advance tickets are available from as they can open reservations for cheaper fares quite early (about 80 days). There are also add-on tickets called Plus-Bus serving some cities and towns around the UK - investigate whether you can
    uou can buy PLUSBUS with your train ticket for cheap bus travel to and from your rail station and around town. Also look around for cheap intercity bus or coach links as well – this may cost you less than a train journey. Check out National Express for a Young Person's coachcard that can save you 30% on your coach travel and Megabus for low cost inter city bus travel from £1 plus 50p booking fee.
  • If you travel regularly by train consider buying a Young Person's Railcard. It will save you a third off your fares.
  • If there is a group of you heading somewhere, it might be cheaper to all get a taxi. If several of you all need to go grocery shopping in your halls or house, go together and save.

Insurance

This might cost you money, but not nearly as much as it would if you were burgled. Check if you are covered (or can be covered) under the terms of your parents' contents insurance; if not, take out some specialist Student Insurance. If you do opt for some student cover, shop around as prices vary and be sure to cover yourself adequately. If you are taking expensive items with you check they don't exceed the Single Item Allowance on the policy. Also Personal Possessions Cover (cover for when your possessions are away from halls or your house) and Pedal Cycle Cover may not come as standard so it would be advisable to add these. You are going to be doing a lot of reading over the next few years; start now by reading the small print of your policy to satisfy yourself that you are fully protected. Research cheap contents insurance here.

Fitness

The gym can be expensive; although the university gym is likely to work out less expensive than an off-campus gym. However, there are forms of exercise that can be done without spending too much. Running for instance is a great way to keep in shape. Student-friendly events like parkrun, (a free. weekly 5 kilometre running event) are springing up all over the country.

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at anytime.

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