Student Money Tips
10 ways to make student finances smarter
By Sarah Modlock
Whether you're reading astrophysics or astronomy, you will need to make the most of your cash.
Here are 10 ways to help:
1
Don't pay to get at your own money - make sure you withdraw cash from an ATM which does not charge a fee. It may mean a bit more planning - many free cash machines are a distance from campus. The ones that are on site could charge between £1.25 and £2.00 for each withdrawal, regardless of how much you take out. Your uni may even be getting a cut - depending on the deal negotiated with the operator, universities make money by charging rent, taking a proportion of the fees charged by the machine, or both. All fee-charging ATMs must carry a message on their screens before a card is inserted, warning that they charge for withdrawals. Machines must also have an external sign, next to the screen and easy to read, stating that they charge, so that you can avoid them easily.
2
Get your student discounts - join the National Union of Students and you can enjoy discounts on a huge range of products and services from electronic equipment to condoms, pasta to prescription glasses. Your NUS Extra Card also includes a free Isic (international student identity card - www.isic.org) Card worth £7. This turns your NUS Extra Card into an international card with discounts in 100 countries. You can also enjoy discounts locally, online and on the high street. The Extra Card costs £10, with money from every sale reinvested in your own student union for better services and support. Find out more on www.nusonline.co.uk.
3
Bulk buy - there may be one of you who is hooked on choc ices and another who can't live without bubble bath but for the things you do share - everything from washing powder to loo rolls - buy in bulk where discounts such as three-for-two are available - and share the costs.
4
Get cheaper books - look out for discounts or special sales at bookshops such as Blackwell. Your student union should also have information on anyone in the year above selling off used books and Amazon is a good place to look for second hand deals.
5
Reduce your mobile bills - it pays to keep your mobile phone tariff under review. Pre-pay tariffs are handy for people who want to manage their call costs but the chances are you will rely on your mobile and use it regularly. As a rule of thumb, consumer campaigner Which? recommends that if your bill is more than £15 a month and you use your phone more than three minutes a day, you might save money with a contract but shop around the best deal. Review how much you use your phone, when you make calls, how often you text and whether you plan to take your phone abroad. Then pick the provider which offers the best deal on everything you need plus a host of luscious extras. Which?'s free SwitchwithWhich website compares more than 300 tariffs from leading providers and is updated every month when providers announce their latest tariffs.
6
Travel for less - the average student (whatever that is) will fork out well over a thousand pounds each academic year. The Young Person's Railcard costs £20, gets you a third off most rail fares in Britain and will pay for itself very quickly. All students are eligible - those aged over 26 need to prove they're in full-time education. In London, students can get 30% off Travelcards and bus passes lasting a week or more. Full-time students can also get up to 30% off National Express coach services by buying a NX2 card, which costs £10. Another way to get cheaper train fares is to book early. This is particularly useful for planned journeys such as going home for Christmas or holidays - you should be able to book several weeks in advance, secure you place and save money.
7
Keep your bills low - there are hundreds of companies competing to offer you cheaper gas, electricity and landline services. Switching energy companies is easy to do. Start by making use of the free, impartial comparison websites that are accredited by Energywatch, such as SwitchwithWhich, uSwitch and MoneyExpert. Using the same supplier for gas and electricity may also save you cash - check out dual fuel tariffs. Being more energy efficient will lower your bills - the Energy Savings Trust website has lots of tips that can save you money. Visit the Yahoo!'s Cut your Bills section and switch providers now.
8
Share bills carefully - or don't share at all. If your name is listed as the bill payer the service provider will expect you to pay, even if you are let down by a house mate. It could affect your credit record if you default on bills so only sign up if you are sure you can trust your buddies. Standing orders make shared finances easier and more reliable. Paying bills by direct debit should get you a discount.
9
Buy a TV licence - if you have a TV or TV equipment (think PCs with broadcast cards, set-top boxes or VCRs) then you are legally required to have a TV licence. However tempted you are to leave it to chance, it has to be cheaper than the £1,000 fine if you get caught. If you live in halls, watching TV in the common room is covered but you'll need a licence if you have one in your own room. In shared houses, it depends on the tenancy agreement. If your room is a separately occupied place (indicated by a separate tenancy agreement), you'll need your own licence unless there's just one TV in a communal area. If you have a joint tenancy agreement, your property just needs one licence for all the TVs. If you are going away for summer and you're not going to need your licence again before it expires, you can claim a refund for any completely unused quarter (three consecutive calendar months, e.g. July, August, September). You'll probably need to buy your TV Licence by October in order to receive a refund.
10
Get insured - according to the British Insurance Brokers' Association, around 38,500 of this year's 350,000 first-year students will be burgled during the course of their student life. On that happy note, it's time to get to grips with insurance. Less than half of students bother with insurance but that's a false economy. It would costs a fortune to replace the array of electronic kit in many student halls and houses. Keep your room or home secure and shop around for the best cover. Visit the Yahoo!'s Insurance section and get cover now.
