Students Investing in Their Future Need to Manage Their Finances Today

With the A-level results coming out, the long wait for UK school leavers hoping to go to university will soon be over. All the hard work that has been put into achieving the grades required will now pay off and the fun and freedom that is student life can begin. This may have been the case in the past, but the notion that university life is socially and financially responsibility free is now lamentably outdated. These days, if you want to study beyond the age of 18, learning becomes very expensive.

According to the National Union of Students (NUS) the typical cost of living expenses at a university outside London are around £8,600 a year for the essentials of food, rent, fuel, books and tuition. For students' studying in London they can expect to pay over £10,000 a year.

Barclays bank has calculated that currently the average graduate leaves university owing £13,501. Jeremy Law, the head of student and graduate banking at Barclays said, "students starting a three-year course this September could be graduating with debts of almost £20,000?graduates will find themselves with debts for years to come which may affect their ability to buy homes and invest in pensions?prince or pauper, these levels of debt may act as a deterrent to some people considering going to university."

With student debt growing every year - financial comparison sites like Moneynet are seeing an increased need for students to take control early and carefully plan for their future. Richard Brown, Chief Executive of Moneynet said "We all understand the importance of budgeting, but for students this can be especially difficult."

HSBC has estimated that there will be a difference of around £6,400 between the average student's income through loans and their total expenditure this year, making the skill of how to budget effectively a vitally important one to develop early on in a student's life.

A spokesperson for the NUS said, "When you get your student loan it can seem like a lot of money. And for those who have never had to juggle lots of money before it can be difficult not to go out and blow it."

There is help available from the NUS and other sources to students who get into financial difficulty. The NUS has set up advice centres which can provide support on money management as well as advice on how to access any other funds such as Higher Education Grants, Childcare Grants, Disabled Students' Allowance, Parents' Learning Allowance, as well as possible reduced rate loans, which may be available dependent on course subjects and individual circumstances.

An important issue for freshers to learn is that making careful financial choices early on, such as the right bank account, can help keep graduation debt to a minimum. By focusing on the interest rates, authorised and unauthorised overdraft borrowing rates, bank charges and ease of access to the money in their account, rather than the host of freebie sign-up gimmicks can make all the difference.

The NUS advises, "Students not to get a credit card as you will pay exactly the same high interest rates as everyone else". In general, credit cards rarely carry genuinely privileged terms solely for students, however students can still utilise cheap forms of credit specifically devised for their circumstances, such as graduated interest-free overdrafts and low interest student loans, before resorting to a credit card if necessary.

Living at home will help to keep costs down, but for most students, this is frequently either not possible, or not desirable. The best way to make finances go further whilst at college is obviously to get some form of job that will fit in around studying. Although many employers do not like employees having irregular working hours due to external commitments, there are some employers who will veritably embrace students as they can fill in on a part-time basis to cover unsociable hours and holiday periods. Supermarkets, restaurants and bars are ideal for student work, as is working late shifts in large financial firms, or being a mystery shopper for research companies, or even becoming a film extra for £50 to £200 a day.

The real problem that needs to be in the minds of all students though is that any money that they borrow, whether it is through a loan or a credit card, must still be paid back at some point, even if that time may seem a long way off, and they expect to be earning a high salary. The truth is that there are more graduates leaving university every year, and there is increasing competition for what seems to be a dwindling graduate job market with diminishing pay rates. Students need to take control of their finances as early as possible in order to stop their finances taking control of them for a long time to come.

References:
National Union of Students
Moneynet financial comparisons

Authors Bio:
Richard lives in Edinburgh, occasionally writing for the personal finance blog Cashzilla and hates Brassica oleracea var gemmifera (aka brussel sprouts).

---

What is ChexSystems?

Commonly referred to as the first of the three major... Read More

Reduce College Debt with Scholarships

Six Scholarship judges were sitting around an oval table. Forms... Read More

Money Matters: Strengthen Your Marriage by Putting Finances in Order

Did you know that 43% of all married couples argue... Read More

Avoiding A Nightmare On Renovation Street

You've decided you want a bigger, better and more desirable... Read More

Budgeting Before Buying

With interest rates being at an all-time low, I can... Read More

How To Survive The Grocery Shopping Blues

If you are the normal consumer, then you've probably experienced... Read More

Accessing Funds You Never Knew You Had- Household Utilities and Mortgage Expense Reduction Plan

For most of us the process of getting out of... Read More

Resources to Help You Learn About and Protect Yourself from Identity Theft

There is a new bill that is being passes, it... Read More

Budgeting Tips to Save Real Money

Sticking to a budget can be difficult, but with so... Read More

Whats The Truth Behind Your Finances?

Between 15 - 20% of people in our country (UK)... Read More

Planning Your Financial Future

Millions of people give a lot of thought to financial... Read More

Can You Afford Not To Look After Your Personal Finances?

Investing is a subject a lot of people don't want... Read More

Personal Finance ? Why You Should Compare, not Despair

Sorting out your personal finances can be a tricky and... Read More

Vacations Made Easy: Buying a Florida Investment Property

Vacations Made Easy: Buying a Florida Investment PropertyA relaxing beach... Read More

Roth IRA Contributions - IRS Rules

Confused about whether you can contribute to a Roth IRA?... Read More

Budgeting Your Way to Financial Freedom

Financial freedom cannot be achieved without budgeting. Budgeting involves tracking... Read More

Live Green; Save Green!

Have you seen the recent article on a new "green"... Read More

More Money? My Cup Runneth Over...But Im Still Thirsty

Most of us, especially those of us who have debtor's... Read More

Adverse Debt Levels Blight UK Consumers Personal Finances

Debt levels are at an all time high in the... Read More

Im Broke, How Can I Afford...

I'm still amazed every time someone comes to me complaining... Read More

First Checking Account ? When is it Time?

We all know that money doesn't grow on trees, but... Read More

How to Balance Your Checkbook ? Get a Calculator and Pencil and You are Ready To Go!

Despite how easy it is to balance a checkbook, very... Read More

Car Donations and Used Car Donations

Car donations and used car donations are the way many... Read More

Why You Should Seek Professional Help With Asset Management

Everyone needs to maintain their lives. What I mean by... Read More

10 Money-Saving Tips

1. If you have your haircut every 3 weeks, try... Read More

Dramatically Improve Your Stock Trading Success

Get Access to Realistic profitable strategies & discover the mindset... Read More

Introduction to Australian Superannuation

Australians, in general, constitute some of the worst savers in... Read More

Should You Borrow From Your 401(k) Account?

If you have a 401(k) account, it can be very... Read More

Take Control and Master Your Kitchen

Those who keep a watchful eye on where their money... Read More

How to Choose Wisely a Credit Card

So, you've made the decision to apply for a credit... Read More

Reporting Identity Theft

Would you know what to do if you suspect that... Read More

Personal Loans For Homeowners ? One Of The Numerous Rewards For Being A Homeowner

You no longer look at the pictures of homes cause... Read More

Honor Those Who Serve with Checking Account Supplies

Our global society has had a wake up call in... Read More