Going to university or college at the end of this summer?
Remember these basics and you’ll have far fewer money worries.
1. Not all debt is bad…
In recent years, growing fees and other expenses have put many potential students off higher education, especially those from lower income families. However, gaining a degree can usually be seen as an investment in your future career. Research the true likely costs, rather than letting your imagination run away with itself, if you’re leaving for university soon – having realistic expectations can save you a lot of unnecessary fear and stress.
The important thing is to keep spending under control, and borrow wisely. Official student loans are low-interest borrowing, and you don’t have to start paying them back until you’re earning over a certain salary threshold, so these debts are not going to get out of control. Many students also qualify for grants, bursaries and exemptions for fees, lowering the overall cost.
2. Don’t give up if you mess up
The theory of living on a budget does not always live up to the reality of it, and many students give up after their first few mistakes, diving headlong into greater overspending. It’s ok if you mess up a bit during your first term, in fact it’s probably to be expected. Just learn from your experiences, and re-draw your budget to make it more realistic, if needed.
The commonest mistake is not budgeting extra for the expensive first couple of weeks after you arrive at university. It’s a good idea to save up some cash during the summer holidays before you leave home, so you don’t need to worry too much about setting-up costs such as textbooks, travelcards, joining fees and so on.
3. Don’t be a money or lifestyle snob
If you’re too attached to brand names, or you think it’s embarrassing to use money-off coupons, it’s time for a rethink. Cheaper brands, especially supermarket own-label and economy ranges, can be just as good as more expensive ones and you can get student discount on almost everything – if you ask for it. Shop around, and take pride in finding good deals.
4. Avoid high interest borrowing
High interest debts that you can’t pay back quickly are extremely dangerous and can burden you with a toxic debt load that’s hard to escape from. In particular, it’s best to avoid credit card debt as students tend to be offered unfavourable rates, and you should especially avoid taking out payday loans since you won’t be on a regular wage.
If things really are that desperate, make an urgent appointment to speak to a student finance advisor at your university instead. They may be able to help you find emergency funds to get you out of a tight spot.
{Image: David Morris}
