The Basics

There are a number of basic but important steps that should be taken by students to ensure their finances don’t spiral out of control. These include:

• Understand the cost of living out - Moving out of home is anything but cheap, especially for those studying in London , so students should ensure they are fully aware of what their living expenses will be.

• Budgeting – Once all costs of higher education have been worked out, students should draw up a weekly/monthly budget and plan their spending, preferably in a spreadsheet form that can be edited when necessary.

• Choose the right Student Bank Account – When shopping for a suitable bank account, students should keep an eye out for ones that offer benefits such as interest-free overdrafts and free banking facilities. (more on student bank accounts below)

• Save – Students should try to cut costs on everyday living expenses, entertainment and other areas of student life.

• Use a Student Loan carefully – Students can easily fall into the trap of spending too much on the fun side of university life and neglecting more important money matters such as buying course-related books and transport costs.

• Stay clear from credit cards – Although these can be useful for things such as online purchases, they come with interest-based repayments, so should therefore be given careful consideration.

Accommodation and other Living Costs

Whether living in halls of residence, a flat, or in a house, accommodation costs are likely to be a student’s single biggest expense. The following are the other additional costs that students are likely to face when studying away from home:

• Household bills - gas, electricity, water rates, phone, TV licence, contents insurance, etc. *Some of these will be covered by rent if a student is living in halls of residence
• Food allowance – weekly shopping, eating out, etc
• Travel costs – train fares, petrol costs for car owners, etc
• Course costs - books, materials, etc
• Clothes allowance
• Socialising
• Leisure and sports – memberships fees, court rental fees, etc