Money
BASICS
It can't buy you love.
But you will need it at university nonetheless.
There was a time when the penniless student was considered a fact of life. Chaucer’s Clerk in the Canterbury Tales, for example, ate little and had threadbare clothes because he spent all of his money on books.
These days, almost all undergraduate students will be eligible to receive a maintenance grant which is designed to help with the cost of food and clothing. Undergraduates are unlikely to starve or freeze to death!
However, it is worth remembering that, with the current high cost of living, those grants won’t spread very far.
And, of course, there will be plenty of student activities which can eat up your money very quickly! As we have written HERE, we feel it is important to let off steam now and then, as well as engage in social activities such as sport and societies. But these need to be affordable as well as fun.
Budget
So, before you go, we suggest you attempt to draw up a list of what you think you will spend money on at university and try to create some sort of budget. (This will undoubtedly be inaccurate or incomplete – you will only know the precise costs when you have completed your first term – but it will still be a very useful exercise.)
Here are some of our suggestions to add to that list:
Food
Laundry costs
Cleaning products etc
Personal care/make up
Travel costs
Books
Stationary
Software
Necessary Clothing
Subscriptions/Memberships
Going Out (once or twice a week)
Insurance
Unexpected events
The last one might seem odd, but it is important to realise that sometimes life throws you a curveball. A family member gets ill; your stuff gets stolen; your car breaks down; you need to change accommodation; your health or wellbeing suddenly declines. The list of things that can go wrong is endless.
This is why it is sensible to have a little bit of money set aside for emergencies. That way, if you suddenly need to journey home or are faced with a bill you weren’t expecting, the effect will be limited.
TIP
It is usually possible for students to get some sort of insurance for their possessions at a low rate. Taking advantage of that may limit the effects of theft or damage, as well as providing some peace of mind.
Bank Accounts
You will need to have a Student Current Account before going – this is where your grant/loans will be paid into.
Choosing the right bank account is important. We recommend you don’t automatically sign up with the bank used by your parents as Student accounts generally offer specific perks (such as Rail travel cards or vouchers for eating out) which aren’t necessarily available through the bank that adults use.
It is not an easy choice to make – particularly as banks often change their offers and other details every year – so we recommend you use the guides at moneysavingexpert.com as we find these offer the latest and best advice.
Work
A final thing to think about is the long-term cost of going to university. It is always better to have earned some money before going because, as we have seen, costs are high and unforeseen events can occur.
Use the summer break to work more hours and get a fund together. (You could also look at opportunities to work during the winter break as well.)
Also, think seriously about delaying starting your course by a year, giving you time to raise more funds as well as gaining more life experience. University is fun and definitely something to look forward to, but it is better to be prepared financially before you go.