Being a student at University and trying to juggle classes, paying rent, the cost of living and so on can be rather tricky, especially when you are on a tight budget. Here are a few great tips on how to manage your money in the best way possible and still have a few pounds to spend on your girlfriend at the end of the month.
UK students are allowed to apply for a loan from the government and can receive as much as nine thousand pounds. This money is available to everyone, but has to be paid back once the course is finished. If your family falls into the lower income bracket, then you can also apply for a grant to help with the costs of living. This grant does not need to be paid back to the government. There is also a maintenance loan available, but this also has to be paid back once your studies are completed.
Choosing the right student account
Making sure that you get an account that offers you an interest free overdraft facility is more than likely the most important feature for a student. Check what other offers there are before jumping into the first one that comes along. It is also advisable that you do not choose an overdraft too large, because you will eventually have to pay it back. Do your best not to go over the overdraft limit, if you do, you will end up paying hefty penalties.
Student credit cards
There are certain banks that have special credit cards available for students, but their limit is normally rather low. If you are using your credit card, you need to understand how much interest you will be charged for purchases you make. It is better to use your student overdraft facility, because it is interest free. Do not get caught up in bad debt before you even finish your studies.
Budget, Budget, Budget
As boring as it may sound, it is very important to create a budget and stick to it. You need to know what you are spending your money on each month and if you are spending way more than you actually have to spend, then you need to sit down and figure out ways to cut down on your spending and try to rather save some money each month.
Students generally have a laptop, iPod, mobile phone and other expensive items with them on a regular basis. It is important to make sure that these items are insured correctly in case of theft or loss. It is possible to add your items onto your parents insurance, but they must be aware of what you are doing. If you’re not covered by your parents’ home insurance, look for buildings insurance quotes online and get your belongings covered.
Get a part time job
Find a job that is flexible, one that you can do a few evening per week and one that pays you daily if possible. By doing so, you will ensure that you always have some money available and you will not have to use the overdraft facility that often, which means that you will have less money to pay back at the end of the day.