Students - don’t let debt get you down

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Although student debits have risen to above £50,000 for a three-year course, finances can be managed, as long as one eye is kept on your bank account.

Spreadsheets, a closed wallet, and an awareness of spending are all ways to prevent money worries ruining the university experience.

With just two per cent of students living without an overdraft (Endsleigh) and all students given the option to apply for loans for tuition fees and living costs, students build up debt.

But even with so much borrowed money, living away from home for the first time can often leave teenagers bewildered, with more than a quarter of students spending the first instalment of their student loan in less than a month (Endsleigh).

Therefore money management, and not spending too eagerly, become key to the ever-increasing difficulty of eating normal meals.

Lizzie Kaye, a former Spalding High School student, has just finished her second year of a languages degree at Durham University.

She said: “My mum helped me out with finances by making a spreadsheet which detailed expenses such as rent and estimated gas and electricity bills, and also specified when I would be receiving money from Student Finance.

“This really helped me to keep track of my spending, as I knew how much I could afford to spend each day on food and other expenses.

“The bank I chose to get a student account with was Santander, because they were offering a free 16-25 Railcard and a £1,500 overdraft to anyone who applied, both of which have proven to be very useful.

“My advice to others regarding finance at university would be to make sure you always know how much money you have, and try to budget yourself on what you spend.

“An overdraft will always be useful too, as it is reassuring to know that it is there if you need it.”

However experts warn soon-to-be students not to be drawn in to a certain student account by gifts like a free railcard.

Instead, time should be spent looking into the best terms.

Go to: https://www.future-mag.co.uk/