If you have a student in the family they may well be about to set off to college (hoping those A level results were good!)…Make sure they read these top budgeting tips for students from the debt advisory line….
September will see a new set of students embarking on their university adventure, but financially, times have never been harder for under-graduates. With high tuition fees and expensive living costs, it’s no surprise that many students worry about racking up debt whilst studying.
Photo Credit Tea but no e
According to a survey published by the Association of Investment Companies* (AIC), 54% of students believe they will graduate with over £20,000 of debt and expect it to take up to 20 years to repay. The study also highlighted that 86% of parents would struggle to support their child throughout university due to being financially-strained themselves.
In recent years tuition fees have risen to £9,000 per year at most universities. A report published by the Institute of Fiscal Studies highlighted that these rises will result in higher levels of student debt, increasing from £22,127 to £37,658.
The Debt Advisory Line is warning students of the dangers of overspending whilst living away from home and is urging them to take steps to avoid becoming victim to spiraling debt. H
Here you go students….
Check what you’re entitled to – see if you are eligible for a student grant – not as common as they used to be but are still a huge help to students from low-income families.
Go second hand – don’t stump up the full price if you can get the same thing in good condition second hand. For example, buying used textbooks can make great savings and you can also buy and sell privately, bypassing any used-bookstore fees.
Always ask for student discount – By paying £10 for an ‘NUS Extra’ card, students can save 5% off book orders through Amazon, as well as reductions and discounts at various high-street retailers.
It’s a hard one but try not to use overdrafts or credit cards – living on borrowed credit can leave you with high usage charges and interest rates, which will only exasperate your financial problems.
Save on Rent – Living in student halls can be a lot of fun, but it can also be expensive. It can be Beneficial for the first year to find your feet; however other options are available thereafter. If living at home is an option this can save a lot of money.
Share petrol – lift sharing instantly cuts your fuel costs, so why not offer to share lifts with friends who are from the same area as you when driving home for the weekend or holidays.
Food – When shopping, go for supermarket own brands instead of pricey premium branded products. Don’t forget to make a list too! If you know what you need and stick to it, you will save money. Look out for offers with three for twos saving you multiple trips and money and cook meals in bulk and freeze portions so you always have something in to eat. This will save you time and money.
If you have any top budgeting tips for students (ones based on your own experiences are often the best!) please add them to comments on this post.
All will be welcomed I’m sure!