Student Money Advice A quick guide

Work out a realistic budget

Starting University can be a daunting experience, both personally and financially. Therefore, to ease some of the worries, it may be helpful to set a realistic budget to work towards. This may be difficult to do before settling into the University and seeing how much things cost. However, an estimated budget could still be useful.

To start with, you should calculate your monthly income. This should include any money you will receive from your loans, family members or part time work. Once you've calculated your income, you should then begin calculating your estimated outgoings, including food, bills, rent, travel expenses and laundry. The remaining amount can be used to save and for any entertainment you enjoy.

Make use of your student status

As a student, you can access lots of different discounts which will help you to save on spending. You will be eligible to sign up for UniDays, Student Beans and Totum which offer discounts for a whole range of shops and services.

You can find more information about the Totum card online.

If you are aged between 16-25, you could apply for a Student Railcard. It costs £30 to purchase but you will save a third off rail travel for one year. You can find more information on their website.

Optimise your student loan

If you are eligible for a student loan, make sure to transfer it straight to a savings account once you've kept back enough for your immediate needs. This will allow you to obtain interest on the remaining amount. It will also prevent you from dipping into it for nonemergency spending.

We recommend researching different saving accounts so you can find the one with the best interest rates.

Consider a part time job

Working part time alongside your studies is not right for everyone as it depends on your lifestyle, the intensity of your course and what other obligations you have. However, if you feel you have time to get a part time job, this can be a great way to boost your income.

It's important to consider what the expectations are of your course to see whether you can fit a job in to your study time. If you do decide to get a part time job, try not to work more than 16 hours a week.

Limit your spending

You should try and reduce the number of nonpriority outgoings you have. Nonpriority spending includes takeaways, nights out and any other costs that aren't essential.

There are also simple and effective ways to reduce your priority spending. For example, ensuring that you turn plugs off at the wall when finished with them can reduce your electricity bill. Similarly, this can be done by switching lights off when they aren't needed; reducing the amount of time you spend in the shower; and turning your heating off during summer; buying second handbooks or borrowing them from the University library.

Grocery shopping can also be expensive and so batch cooking can be an effective way to limit the cost and reduce waste. You could also cook with friends to share the grocery costs.

Get the right bank account

When deciding on a bank account, you should think about what features are important to you and which banks offer the best deals. Some banks offer student overdrafts which are interest free for a certain number of years. Therefore, you should research before making a decision to ensure that the chosen bank is the right one for you. The main things to look for in a student account are

• overdraft fees: Some may charge a monthly fee for using an overdraft, whilst others will offer an interest free one. You should take this into consideration when deciding.
• interest paid on balances: Some banks will offer interest on money left in your account so look out for this option as it's definitely a bonus.
• other charges: There may be additional costs on some accounts for going into your overdraft etc so make sure to read the terms and conditions carefully before signing up.
• accessibility: It's a good idea to make sure you choose a bank with either a branch or a cashpoint near where you will be living. This way you will be able to withdraw funds without extra charges and have someone to speak to face-to-face, if you require advice. We also recommend signing up for online banking so you can keep a close eye on your account.