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Tips on student finance from ASDA, the experts in saving money!

 

University life for most students means independence – independent study, independent finances and living away from home.

With new people to meet and places to go, personal finance isn’t probably at the top of a new student’s priorities. But it should be, because course fees and living costs will mean many will finish a degree with debts of more than £20,000.

It pays to be prepared, so here are Asda’s top tips for student finance:

Tip one: Take a look at the Asda Student Shopper Card:

You get a card for the student and a card for the parents. The two cards are linked together so parents or students can easily top up the students card, which can then be used in any Asda store.

Tip two: check out student loan availability early

Visit the student finance section at direct.gov.uk for details of student loan eligibility. Do this before you get a place on a course so you can decide whether you want, or are able, to shoulder the expense of university life.

You’ll need to weigh up what your course fees will be (a maximum of £3,290 for the 2010/11 academic year), then add in living costs, such as rent, books, food, bills and recreation.

Tip three: calculate a realistic student budget

By knowing your costs and income you’ll be able to draw up a budget and set a weekly spending Allowance. A student budget can be as simple or complicated as you wish – but be realistic and stick to your spending plans. Stories of students blowing their first term’s cash during freshers’ week aren’t uncommon and reckless spending can ruin your academic aspirations.

Tip four : find a bank account to meet your needs

Banks are keen to win students’ custom because they are likely to be the big earners of the future. That means they offer special student bank accounts offering incentives such as money-off vouchers or a 16-25 Railcard.

But while perks may be attractive, more important to many will be an interest-free overdraft option. A student overdraft will certainly come in handy for your time at university. Armed with your budget, you should have a good idea of your financial needs. Shop around for an account which suits you – which may mean you plump for a mainstream bank account, instead of a student-specific product.

Tip five: monitor your bank account

Once at university keep on top of your finances. That means regularly checking your balance online, and taking action if your spending is running out of control. A big danger to a tight student’s budget is unauthorised overdraft costs – so don’t bury your head in the sand.

Tip six: be careful with credit cards

If you’re going to use a credit card, do it with your eyes open. Debts run up on a card should be repaid as soon as possible, or you’ll be paying dearly for the privilege. If you have no regular income to repay a credit card debt your debt will grow each month.

Tip seven: take out insurance – and a TV licence

Today's student arrives with a host of electrical goodies such as iPods, laptops and digital cameras so they should sign up for student contents insurance before reaching their hall of residence. A TV licence is also another essential purchase if you’ve got your own TV set. Ignore it and you could face a fine of £1,000.

Tip eight: pay bills on time

If you’re living in a shared house someone may need to organise accounts to receive electricity and gas. If you are that person, make sure bills are paid on time, even if you are let down by your housemates. Late or missed payments will result in your credit record being damaged, which will impact on your ability to get loans in the future.