Graduation
Set a budget. Most students underestimate how much money they will spend in term time on books, food and socialising. They should set a realistic budget, shop at discount supermarkets for basic items such as food and be encouraged to save up loyalty points, which can be converted into vouchers to be spent later in the term. Remember that many shops and restaurants offer discounts to students too. If at all possible, impress on the student not to go on a massive blow-out the moment they get a student loan or other cash.
Most students underestimate how much money they will spend in term time on books, food and socialising. They should set a realistic budget, shop at discount supermarkets for basic items such as food and be encouraged to save up loyalty points, which can be converted into vouchers to be spent later in the term. Remember that many shops and restaurants offer discounts to students too. If at all possible, impress on the student not to go on a massive blow-out the moment they get a student loan or other cash.
Swap banks. Not all banks are the same. Many students will already have a bank account by the time they reach university and are often offered an upgrade to a student bank account. It is, however, an excellent time to swap bank accounts as the student market is a significant one for banks and they will compete hard for their cash. Don't fall for perks such as free iPods and cinema tickets; it is the overdraft facility that is the most valuable. The best accounts will have a 0% overdraft facility for the longest period of time.
Set the rules. If a student is sharing accommodation with friends, suggest they keep a kitty to cover shared items and set out from the start clearly who will pay for what. They might even like to set up two bank accounts, one for rent and bills and the other for spending money. If parents are helping out with bills, they should ensure that direct debits are set up from the former, so essentials are always paid.
Get insured. Insurance is often over-looked in the excitement of independent living, but with more expensive technology around such as laptops, mobile phones and MP3 players, it can be critical. The good news is, with some insurers, cover should be free. Students living in halls of residence can get their belongings covered under their parents' home insurance policies as the goods are viewed as contents temporarily removed from the home. Any claims will, however, affect the no claims history and any subsequent no-claims discounts. Some specialist insurers provide cover for student rooms on campus and in privately rented accommodation.
Get a well paid part-time job. Many students are attracted to the lifestyle of bar or restaurant work, but these jobs seldom offer much more than the minimum wage. There are other part time jobs that offer higher pay and the opportunity for flexible working. The following jobs could be considered; book-keeping at around £8ph, administration jobs which start at £7ph, working as an after school nanny for between £7.50 and £10ph and IT programmer for no less than £7ph.
And finally: it might be tempting, but try not to bail out errant students at the first sign of trouble, or they will never learn how to budget.
* Written by Teena Lyons. Teena's opinions are her own and for general information only. Always seek independent financial advice.