Money - Managing Your Money

As a student, you probably know how much money you get and how quickly it all gets spent. Hopefully, this guide will help you organize your finances better, and give you a few useful tips to make your money last a bit longer.

Maximising your Income

The first step you need to take is make a list of your income - identify how much money you are getting from different sources. Then look into whether there are other sources of income you could apply for.

To help you do this, the Student Advice & Representation Centre has produced a series of guides giving information on the possible sources of income for students, depending on their circumstances and mode of study:

If you would like a paper copy, please contact the Student Advice & Representation Centre . We can also advise you further on what sources you could possibly obtain income from.

Prioritise your expenses

Once you have looked at what money you have coming in and investigated possible further sources of income, you should then make a list of your expenses to identify how much you spend on priorities and non-priorities. As well as food , you may have other outgoings, which you must treat as a priority:

  • Rent/Mortgage- It is important that you know how much you are paying and when it is payable.
  • Fuel (Gas & Electricity) - You will usually have to pay these bills in addition to your rent. It is important to take meter readings when you move into a property. There are a number of gas and electricity suppliers, and most offer payment plans to spread the cost of bills.
  • Water Rates - your contract will say if you are liable for water rates. You can pay these in a number of ways to spread the cost.
  • Television Licence - You will need a TV licence if you have your own TV in a house or flat - you may need more than one if you do not live as one household. If you do not buy one, you could be fined or even imprisoned. You can spread the cost of paying over the year.
  • Council Tax - Most students are exempt from the council tax, but not always. If you receive a council tax bill, you should seek advice immediately from the Student Advice & Representation Centre.
  • Insurance - you should always take out insurance to cover your personal possessions. There are a number of insurance companies who have student policies, so it is worth shopping around to get a policy which suits you.
  • Books and other course-related costs and equipment - it is vital that, as a student, you have these to study successfully.
  • Other regular costs may include toiletries, travel and clothes .

Draw up a budget

The next thing to do is to draw up a budget planner using the information you have already listed about your income and expenditure - hopefully by having everything on paper, this should help you manage your money. You can use the 'Personal Budget Sheet' produced by the Student Advice & Representation Centre to help you do this - we can help you fill it in if you need assistance.

Tips for Saving Money

A lot of these tips are common sense, but could save you money in the long run!

Food

  • If you can, try and eat and shop with your friends - buying food in bulk is often cheaper.
  • Find out where your local supermarket puts it's reduced foods - you might find shopping towards the end of the day means more reduced stuff.
  • Try and buy 'own brands' and economy products, especially on the basics like tinned tomatoes! And BOGOF (Buy One Get One Free) when you can.
  • You should also make your own sandwiches for lunch - you'll be surprised how much bought lunches can add up.

Bills

  • You may be able to switch to a cheaper gas or electricity supplier. However, check your contract first, as some landlords prohibit it - even if your contract doesn't mention it, you should let your landlord know. If you are thinking of changing, you should shop around - look at the supplier information on the Energywatch website to compare suppliers.
  • You may want to pay bills on a monthly basis, so that you won't have a large quarterly payment to make. You should ensure that bills are based on actual readings, rather than estimated ones, so you are being charged accurately. If you do pay quarterly, put money aside for bills.
  • Make sure lights and electrical equipment is turned off (not just left on standby) when not in use.

Books

  • Try Blackwells or Amazon for second hand books, before spending money on brand new ones. Students on higher years on your course often advertise books for sale on noticeboards.
  • Telephones · Would it be cheaper to have a pay as you go mobile phone, so you don't run up big bills? Make sure you put money aside for mobile phone bills and keep spending to a minimum like everything else. Also, try and get the best deal for your needs.
  • If you have a land-line phone in the house, you could consider an incoming-calls only phone. Alternatively, you should get itemized bills to make sure you and your housemates know who have made all the calls.

Student Discounts

  • Use your NUS card! A lot of places offer student discounts or special deals.

Travel

  • Get a young person's railcard or coachcard. You can often cover the cost of these in one or two journeys.
  • If you have to use the bus every day, you may be able to get a bus pass.
  • Is it practical for you to walk or cycle instead of get the bus?

Banks

If you have a bank or building society account that pays interest, make sure that you fill in Inland Revenue form R85, so you are paid interest without tax being taken off.

Don't go overdrawn without first arranging an overdraft limit - most banks offer students an interest-free overdraft. Likewise, don't go over your overdraft limit without speaking to the bank.

Keep in contact with the bank - don't ignore or throw out letter from them, act on them.

If you are worried about your account, it helps to talk to them - if you prepare a budget this can often help in your negotiations with them. Remember that banks on campus are used to dealing with students..most of whom are on tight budgets. If you don't communicate with the bank, you will probably find you get charged high bank charges or interest or even have your bank account closed.

Credit and Debt

It is not advisable to commit yourself to credit without checking whether you can meet the repayments. Likewise, you should not take on more debt to try and repay other debts.

Credit cards should not be seen as another source of funding, but as debt. Try and limit your credit, and try and stick to one credit card if you feel you need one (say for emergencies).

If you are being pursued for any type of debt, which you either cannot pay or do not believe you owe, you should contact the Student Advice & Representation Centre. Debts from credit cards, store cards, catalogues etc. are treated as lower priority than things like rent/mortgage, utility bills etc. The Student Advice & Representation Centre can help you renegotiate payments if you can't afford to pay creditors, so please contact us if you are having difficulty meeting your financial commitments.

Author: name Date: 10/08/2005

University of Nottingham Students' Union
Portland Building, University Park , Nottingham NG7 2RD
Tel: + 44 (0)115 846 8800 Fax: + 44 (0)115 846 8801

© 2005 University of Nottingham Students' Union