Most students find it difficult to resist spending their entire loan or grant - even if they've only got their hands on a part of it - as quickly as possible. But blowing your student loan by Christmas is not clever.
With what seems like a lot of cash in your bank account or the knowledge that it will be on its way there soon, the temptation to blow the entire amount on a top of the range computer or the latest in home entertainment equipment is huge.
But with the majority of graduates starting out in their working lives deeply in debt, this is not a wise move. Even if you are lucky enough to have a grant or scholarship, there is a very high likelihood that it simply is not enough to see you through college and so you've had to take out loans as well. And you will have to pay back your loans,with interest, even if that seems a long way in the future. So what can you do to avoid being flat broke by Christmas?
Work out how much you actually need before Christmas for rent, bills, food and other essentials, add in something for entertainment and stick the rest in a savings account, with the highest rate of interest you can get. Not much, these days, granted, but better than nothing. Don't touch this account before Christmas, except in dire emergencies, such as illness or starvation.
If you don't already have your own computer, use the computers provided by the college. Many student will already have their own personal computers or laptops and so there should be enough on campus to go around. If not, find out what times of the day or week they are used least and do your work then. It'll probably be early mornings, late evenings or weekends.
So choose whichever works best for your schedule and your biorhythms. This will have the added advantage of helping you to work out a study schedule, which will also enable you to get your assignments in on time.
Take advantage of students' discounts from stationery to haircuts and anything else you can find.
Avoid running up bills on your mobile phone - use email instead where possible.
Buy second hand books. Text books can be incredibly expensive, but you may only need them for a short period and with a few exceptions, you are unlikely to become too attached to them.
The same applies to other students. So get their books, either in the campus secondhand bookshop, from Amazon or by asking students in the year above you. Try to keep them in reasonably good condition and when you are finished with them, sell on to students in the year below you.
Keep to your entertainment budget by making use of college social activities and drinking in the university bar.
Follow these tips to minimize your student debt. You'll be glad when you graduate.
