Student Finances: Keeping the Headaches to a Minimum

Going to university for the first time is a major step towards freedom and adulthood for many young people. This can be both exhilarating and unnerving. Student finances often fall into the unnerving category, and many students find themselves scrambling for extra money. Student finances can be helped by taking on part time jobs in addition to studies. However, you can find they have no time left over for a life.

Some students try to solve this by opening up several current accounts, relying on overdrafts and shuffling money. Other students take out short-term loans of various types and may find themselves with more debt than they can handle. Here are five tips for staying out of trouble.

1. Learn to budget to perfect your student finances.

There’s no getting around it: the sooner you make a budget (and stick to it), the better off you will be. Work out your student finances during the first few weeks of term. When you’re overwhelmed by the excitement of your new surroundings it’s easy to get distracted. If you just live for today and don’t plan then you’re setting yourself up for trouble. If you don’t know the basics of budgeting there are numerous student budget apps to help you. There’s also plenty of budgeting advice available online – like this site.

2. Take advantage of student discounts, but don’t spend just because you have a discount.

Despite the challenges of being a student there are also perks, including the variety of discounts for which you as a uni student are now eligible. Boost your student finances by utilising these. The National Union of Students (NUS) is one good place to begin; their NUS Extra Card gives you access to dozens of offers and discounts from a variety of retailers and entertainment venues. It costs only £12 for the year for a standard card or £14.99 for NUS Extra with the International Student Identity Card (ISIC).

One caveat: Go online and check the offers beforehand. If you aren’t likely to use this card you’re better off saving your money. Remember that the purpose of using discounts is to apply them towards goods or services you would buy anyway; a discount for its own sake is just money wasted. Wherever you spend your money, do inquire about the availability of student discounts. It never hurts to ask.

3. Eat out less, cook in more.

When you combine hectic student schedules, lack of cooking skills, and the fact that takeaway restaurants are at an all time high in Britain, it’s no wonder that so many uni students subsist on fast food. This is a sure fire way to damage your student finances. Health questions aside for the moment, you may argue that fast food is the most economical way to go.

Think again: those kebabs and burgers and coffee-shop lattes can really eat away at your budget over time. There’s nothing wrong with the occasional indulgence when you’re craving something greasy or you’re simply too tired or short on time to cook. But if you get in the habit of shopping wisely and cooking at home you’ll not only save money but will also very likely be healthier. It’s worth the extra effort.

4. Learn to love generics and second-hand stuff.

There are times when only the brand name will do, but you might be surprised by the quality of generics and store brands. Many products, including packaged foods, over the counter medications and household supplies are just as good as their branded equivalents. Give them a try to improve your student finances. Also learn to haunt the resale shops, flea markets and even online auctions. Everything you buy doesn’t have to be brand new.

5. If you have to get a loan, do your research and read the fine print.

Sometimes people run into difficulties no matter how frugal they are, and getting a loan seems like the only option when all other possibilities are exhausted. This can have a lasting impact on your student finances. There are many different kinds of personal loans, but some students turn to short-term loans such as a no credit check payday loan. Most experts advise that this should be a last resort because it is so easy to get into trouble with these very high-interest loans. Even so, such a loan may be a workable option for you if you do three things: research carefully, read the fine print on the agreement, and make an absolute commitment to pay the debt back on time. Letting the loan roll over to another month, or taking out another loan to pay that one off, will only compound the problem. Stop the debt cycle before it starts.

And if you are in debt already, or are simply struggling to make ends meet, the National Association of Student Money Advisers is a good resource for suggestions and guidance. As well, the Save the Student site has lots of tips and tricks for students who are interested in spending less and earning more.