A university degree has never been so expensive and the rising cost of
everything, from pasta and baked beans to rented accommodation, will not
help undergraduates trying to stay out of debt. In our second feature on
student finance, Times Money shows how to make each loan payment last until
the end of term.
Budgeting
Draw up a weekly or monthly budget for food, socialising, clothes and bills -
and stick to it. Catherine McGrath, of Lloyds TSB, says: “You can't throw
caution to the wind and go wild with your cash. Part of managing your own
budget is realising that you have financial limits and sticking to them.”
A budget does not have to read like a diary of every purchase. The aim is to
ensure that your outgoings do not exceed the amount you have coming in.
There are a number of student budget calculators online, including the one
at www.ucas.ac.uk.
Thomas Causebrook, a 21-year-old geography graduate, who studied at the
University of Sheffield, managed to sidestep debt by giving himself a weekly
allowance. “I would divide all my money by the number of weeks in the term,
putting aside a small amount for emergencies,” he says. “If you overspend
one weekend, you can cut back the next and you shouldn't be caught short at
the end of term.”
If you need more advice on managing your money, speak to your student union
finance office.
Mobile phones
Asda is not only the cheapest place to buy baked potatoes and frozen pizza;
you could save hundreds of pounds a year by switching to the supermarket's
pay-as-you-go mobile phone tariff, which charges 8p for calls to any network
and 4p for texts - less than half the price of Vodafone or Orange.
If you are a heavier user, James Parker, of Moneysupermarket.com, the
comparison website, suggests Sim-only tariffs. If you can dig out an old
handset, you could get 600 minutes of calls and unlimited texts for £20 a
month with O2 Simplicity, or 300 minutes and 2,000 texts on the Virgin
Mobile Liberty tariff, which can be cancelled with 30 days' notice.
Books
Before you spend a small fortune on all the books on your course's recommended
reading list, speak to other students on your course and suggest sharing the
cost of pricier textbooks. You could also save cash buying the books from
second and third-year students or using websites such as
sellstudentbooks.co.uk, abebooks.co.uk or Amazon.co.uk. When you have
finished a specific subject you could also raise extra cash by selling your
books on these sites.
Household bills
When you are living in halls, remember to claim back the last quarter of your
TV licence for the three-month summer period when you will be living at
home.
On the day you move into a shared house with friends, take meter readings and
give these to your energy suppliers. Find the cheapest utility tariffs by
comparing prices online using websites such as uSwitch.com or
Moneysupermarket.com. Look at dual-fuel tariffs (which means buying both
electricity and gas from the same supplier), online plans and be sure to pay
bills by direct debit to avoid extra charges. For tips on ways to save
energy and reduce your bills, visit energysavingtrust.org.uk.
Insurance
If you are living in halls, ask your student union if it has a deal with an
insurer to provide cover to those in your building. About 80 universities
have such agreements and you will benefit from a discounted rate to cover
your room. Endsleigh, the student insurer, also offers cover for halls
rooms, from £16 a year.
Students in shared houses should obtain quotes from a range of insurers to
find the cheapest. Endsleigh and Barclays both offer specialist cover for
students, with standard features such as protection against damaged library
books or lost keys.
A home contents policy from Endsleigh for a student living off-campus in
Cambridge would cost £25 a year to cover £2,500 of possessions. You can add
extra cover for items you carry with you to campus. For example, Endsleigh
will protect your iPod against loss for £12 a year.
Finally, if you drive at university, you could reduce the cost of your car
insurance by adding a parent as a named driver, assuming that he or she has
a clean record.
Discounts galore
Students carrying the NUS Extra card receive discounts at a huge range of
shops, restaurants and websites. The card costs £10 from your student union
or is free when you open a Lloyds TSB student account.
Another favourite is the 16-25 Railcard, giving a third off rail fares and a
wide range of discounts for £24 a year. NatWest offers a free five-year
card with its student account.
Discounts on the web can also add up. It is worth visiting Studentbeans.com,
S-k-i-n-t.co.uk or studentdiscounts.co.uk
to check out the offers available. Other useful websites include myvouchercodes.co.uk
and moneysavingexpert.com
.
