SORTING a student loan and bank account takes time and hassle, but it is just the start. To leave university in good financial shape, you will need to secure affordable housing and streamline living costs. As ever, making the effort to shop around is key.

Accommodation and living costs

The cheapest option is to live at home with parents. But for many students, that misses the point of the university experience. If you do fly the nest, housing will be a huge expense. Halls of residence offer a sheltered introduction to life away from home and can be cost-effective for first-year students.

For example, City University in London charges undergraduates from £94.50 a week, including utilities, undercutting average rent costs in the capital. Most halls are booked up for this year, but Jenna Khalfan, of the National Union of Students (NUS), says that places should become available as students drop out.

The specialist website at www.accommodationfor-students.com says that students who rent outside halls pay an average of £60.58 a week, or £2,907.84 a year, before household bills of about £25 a month. London rents are much higher, at £102.33 a week. William Berry, the site’s founder, advises students to visit five to ten properties before deciding and suggests that students will get more for their money farther away from campus.

If your parents are well off, you could try to persuade them to invest in a student buy-to-let. Spare rooms in the house, or flat, can be rented to cover the mortgage, so you can live rent-free, or at a subsidised rate. Your parents, meanwhile, should benefit from an income boost and long-term capital appreciation. Melanie Bien, of Savills Private Finance, the mortgage broker, says: “Property in a university town can be an excellent investment because there is a ready supply of tenants.”

You are not liable for council tax if you live in halls or an all-student house or flat. If you live with nonstudents, you may be liable for reduced council tax and should contact your council’s tax office for details.

Royal Bank of Scotland puts average living costs, after rent, at £130 a week. These can be reduced by careful budgeting and switching to better utility and telephone deals using comparison websites such as uSwitch.com and moneysupermarket.com. Also look at the money-saving tips for students at www.countdowntouni.direct .

gov.uk, including buying a Young Persons Railcard, which saves a third on rail fares for only £20 a year.

Insurance

A laptop, iPod, games console and digital camera are now standard student kit. Research from Churchill, the insurer, indicates that students take an average of £1,600 of valuables to university and are a prime target for thieves. Basic standalone cover from Endsleigh, the specialist provider, insures possessions to the value of £2,500 from £16 a year for those in halls of residence. Some students are covered free under parents’ household policies, but ask your parents to check this and whether cover is automatic or must be requested.

Insurers require policyholders to report thefts to the police within 24 hours of discovery and most request proof of purchase before paying out for lost or stolen items. Richard Mason, of moneysupermarket.com , says to keep receipts for valuables and a note of serial numbers.

He also advises against making claims on parents’ household policies or standalone policies for losses of less than £400. These can damage your no-claims discount and cost more in higher premiums.

The NUS advises students to consider insurance, but Mr Mason says that basic security precautions, such as a cheap safe and making sure you lock windows, can be a more pragmatic alternative.

Working

About 50 per cent of students work part-time to support their education. Halifax says that undergraduates who work put in about 18 hours a week and make £6,000 a year. However, Ms Khalfan gives warning that working long hours can be counter-productive when it prevents students from participating in CV-boosting activities such as sports and debating.

Classic student jobs are work in bars and shops, but the flexible hours kept by most students allow for some more interesting options. You could work as a film extra in the holidays, for instance, to take home about £80 to £140 a day. Work on the streets as a charity fundraiser pays about £8 to £12 an hour, while paid work experience and placements in industry are a lucrative option for students of engineering and other technology-based degrees.

Opportunities are advertised in your student union’s job shop and on websites such as www.gumtree.com .

Income tax contributions are deducted by your employer, but you will have to complete a tax return if you are classified as self-employed – if you write freelance articles for a local newspaper or magazine, for example. The first £5,225 earned in the 2007-08 tax year will be free of income tax. For a more detailed explanation of the rules, go to the Revenue’s website at www.hmrc.gov.uk/students .

Make the most of mobile phone tariffs

A MOBILE phone is a must for students but the choice of price plans can be overwhelming.

Stick to plans that offer value and flexibility, says Rob Barnes, of moneysupermarket.com. “It is worth having the option of using more minutes and texts than you think you will need,” he says, “because calls become expensive when you have used up your allowance.”

Mr Barnes recommends the Flext 35 tariff from T-Mobile, available online for £30. This gives you 900 minutes or 1,800 texts a month, or a mixture of the two. You receive a free Nokia N95, a smart internet-enabled handset with a five megapixel camera, and free weekend landline calls. Mr Barnes adds: “You can then bolt on a web-and-walk tariff for £7, which gives unlimited access to the internet on your mobile.”

For students who want the cheapest deal, 3 mobile offers 750 minutes to any network and 100 texts for £17.50 a month online. It has other tariffs for £15 a month, all of which include a free phone. O2 Simplicity gives you a Sim card and contract with 200 free minutes to any network and 400 texts for £15 a month, but no handset.

CASE STUDY

AN opportunist thief broke into Philip Savage’s student house in Bristol and walked away with his laptop computer, PS3 games console, watch and digital camera. Fortunately, the 22-year-old from Guildford, who has since completed his business studies course at the University of the West of England, was insured and able to claim for the £3,000 of stolen items.

Mr Savage, right, says that the Endsleigh cover, which costs £124 a year, was a good buy but admits that the break-in may have been avoided with better security – the burglar forced a feeble Victorian window latch. “I don’t know what I would have done without the insurance,” he says.