All over the country, young (and some not so young) people are preparing to start university courses. For many, it will be the first time away from home. Managing cash and finances can seem just as challenging as the course itself.
You should have your student loan sorted by now, but as you may have already realised, it’s not as much as you would like, and you are going to have to be clever with your money to make it stretch far enough.
At Continuum we have some tips to help.
1. Pick a suitable bank account
Most banks offer special student accounts with generous terms. Shop around for the most appropriate interest-free overdrafts and other perks that suit your needs. Make sure to explore overdrafts, credit options, alerts, and mobile banking features to help you track and understand your spending.
If you are going away to study, you might want a free travelcard. Several banks (such as Santander for example) offer them as an incentive.
2. Use digital banking
You might still find some physical banks on campus, but these are going the way of all bank branches. Having your bank in your pocket is essential. Banking via a mobile app makes it easy to keep track of what is going in and out of your account. You can order a new PIN number, manage payments, pay in a cheque, report a lost or stolen card, add biometrics for security and much more besides.
3. Create a budget and stick to it
Plan for termtime costs on a monthly basis. Rent, bills, course materials and transport then see what’s left for everything else. (Don’t forget, your rent may still go out outside term time). If you have unexpected costs, adjust non-essential spending straight away, rather than hoping to catch up later – because you probably won’t.
it might feel exciting to see a large sum appear in your account at the beginning of term but resist the temptation to overspend. Divide your loan into equal monthly amounts to cover the entire term.
4. Find extra funding
Check if you’re eligible for any scholarships and bursaries offered by your university. Also, check for any course-specific or personal circumstance support that could boost your finances. Your university or college student services will point you in the right direction.
5. Unlock student discounts
Banks and retailers want your business in the future, so they may offer you student discounts now. Check out your favourite retailers and their websites for student deals. Apps like UNiDAYS or Student Beans can help you find them, and unlock deals across fashion, tech and food brands.
6. Careful with credit
If you have a student credit card, keep within your limits. Use your credit card only for planned, essential purchases like textbooks, rather than spontaneous spending. And don’t forget that going over your limit or missing a monthly payment can lead to extra charges and will damage your credit rating.
But don’t be afraid to use it. A well-managed credit card demonstrates responsibility and can help build a good credit record. That can help you access more suitable mortgage rates and finance deals after graduation.
An overdraft can also be useful for a short-term borrowing need – make sure to understand the terms and conditions attached to your overdraft.
7. Get a job
Getting part time work that fits in with your lectures and other commitments can be a big boost for your finances.
Look for on-campus and local jobs that understand student schedules and priorities. You may need to look at evening work. It’s not just pubs and bars that need evening work. Supermarkets, petrol stations and cleaners all need people to work outside the usual 9-5
Your university careers service can help you find flexible work that fits around your studies without overwhelming your schedule. But competition will be tough. Start your job search before term begins.
8. Expect the unexpected
Try to set aside a small amount from your loan when it arrives for the unexpected. These emergency funds can help with costs like replacing a broken laptop or a ticket for a train home.
If you do need to dip into your emergency fund, pay it back. You might need it for the next emergency.
9. Get some expert help
Need some help with budgeting, or finding a suitable bank account? Want to know about ways to help make your student loan last a little longer with a savings account? Do you have questions about money?
Give us a call at Continuum. You might think it’s too early to start planning your financial future after university if you haven’t even started – but it might be time to start laying the foundations, by talking to an expert who can help you answer the financial questions the next few years will bring.
The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation you should seek independent financial advice before embarking on any course of action.
The Financial Conduct Authority does not regulate deposit accounts.
