Making the most of your savings: going to university on a budget
Heading off to university is an exciting time but it's also an extremely expensive period of your life. It's likely going to be the first time that you'll be required to be financially independent, so it's a good idea to plan ahead and work out exactly where you can cut down on costs. Here follow a few tips to get you started:
Draw up a budget - and stick to it
If this is the first time you'll be fully regulating your own income/outgoings then you'll want to draw up a budget as early as possible. That doesn't mean that you can't spend money on the fun stuff - just that you need to work out how much you can realistically spend on entertainment and try your hardest not to exceed your limits.
Consider second hand books
Text books are a large expense at the outset of your course so look for ways to reduce the cost. There will plenty of students moving up to the next year or leaving campus who have no need for their first year textbooks any more, so look into sourcing cheap second hand copies from them. Alternatively, band together with some like-minded freshers from your course and buy the essential books as a group, sharing them among yourselves as necessary.
Get a part time job
It's not the most popular idea among many students who view their university years as a time to party as much as it is a time to work hard, but landing a part time job can be a huge boost to your finances - and may even allow you to put some money into your savings account as well as make day-to-day living more affordable. Working in a bar that fellow students frequent is a great solution, allowing you to earn money while still socialising.
Choose the right bank account
Some bank accounts aimed squarely at students will offer ‘freebies' that look good at first glance but you need to look deeper before making your choice. Look at what will be useful to you practically - such as an interest free overdraft, which some banks will provide to students, and the best savings rates if you're going to be able to put away a little money each month.
Don't spend it all at once
If you're taking out a student loan, don't fall into the trap of spending huge amounts of it when it first arrives in your account. It can initially feel like you have an endless pool of money and it's easy to lose sight of the fact that the funds need to last you for the many months until your next payment. If you overspend now, you'll be rueing your mistake in the future.
About the Author
Bythesea is an experienced financial writer specialising in savings accounts, bonds and offshore savings acccounts.
Rating: Not yet rated