Personal Money Management
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.
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
Available by post from:
Orca Bookservices Ltd, Unit A3
Fleets Corner, Poole, Dorset BH17 0HL
Telephone: 01202 665432
Orca Book Services
“Students’ Money Matters" by Gwenda Thomas.
Published annually by Trotman
This is comprehensive. It also covers alternative sources of
funding.
Trotman
"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: CCCS
CCCS
is a
specialist organisation which provides free money management
assistance and confidential counselling to the financially
distressed, including those in debt.
