7 CRAFTY CASH SAVING TIPS FOR STUDENTS
Child or grandchild off to uni? This page will save them a small fortune!
THE campus countdown has begun. In one month, 300,000 freshfaced students will head off to university for the first time.
For most fleeing the nest, the freedoms will bring a new-found independence — albeit one with a hefty price tag.
From bare essentials, such as rent, food and books, to bills for the broader side of student life — a little socialising, clothes and mobile phones — the pressure to spend will be intense.
It’ll also be the first time these scholars have managed a budget or a bank account.
With the typical student expecting to rack up £30,000 of debt over a three-year course, don’t be surprised if many try to tap the Bank of Mum and Dad — or grandparents — for help.
not everyone can afford to part with spare cash, though. Here are the top seven tips for parents to show their offspring how to stand on their own two feet . . .
BORROW AS MUCH FREE CASH AS POSSIBLE
THE bigger the better for a bank overdraft might sound reckless. But it makes sense even if they don’t plan to use it — it can be a handy buffer for unexpected expenses.
Halifax is the most generous bank, with overdrafts of up to £3,000 interest-free for first-year students. RBS, NatWest and Barclays offer up to £2,000 at 0 pc.
Remember, though, just because that’s the advertised limit, it doesn’t mean they’ll get it. In the first year, a bank might typically offer just £1,000. Turn down any offer of a credit card giving up to £500, though. They carry pricey interest rates of around 35 pc and you’ll pay £12 if you miss a repayment.
And certainly don’t use a payday lender. A £100 loan from Wonga means a £124 repayment just 30 days later.
Victoria Cope, 18, from Stockport is off to Manchester Metropolitan University to train as a primary school teacher. She has signed up for as big an overdraft as possible with Halifax.
Though she doesn’t plan to use it all, she wants the peace of mind that she won’t pick up charges if she overspends. I was tempted by a free Railcard available from another bank because I’ll be commuting from home,’ she says. ‘But in the end, I decided a bigger overdraft would help me to manage my money better without fear of picking up fees.’
AVOID PAYING £145 TV LICENCE — LEGALLY
YOU can keep up to date with all your favourite TV shows without having a TV. Stick to catch-up services on laptops, tablets or mobiles and there’s no need to pay the £145.50 TV licence.
Be aware that college halls of residence with a TV licence only cover those watching live s hows in a communal area.
For those who do have their own TV, there’s a refund for the months that the student accommodation is empty in the summer. It’s possible to get up to £37 back.
SPEND £12 TO GET £500 OF DISCOUNTS
An NUS Extra card entitles students to money off in most popular High Street stores, from online purchases at Amazon to food shopping at the Co- op and cinema ticket discounts at odeon.
It costs £12 a year — or £32 for three years. If you’re not sure this is a benefit, there’s a nifty tool on the NUS website to help work out likely savings. The typical student saves £523 a year, it says. It also pays to be a loyal shopper. Students with smartphones can download a free app called Loyalive, which stores all of their loyalty cards on it. Take a picture of each card — for example, Boots Advantage card and Tesco Clubcard — and it s t ores t he details. Then, when shopping in any of those stores, simply scan the phone at the till and the points are logged and collected, so you can build up those bonuses.
AVOID ACCOUNTS WITH USELESS PERKS
EVERY year, banks pick an array of perks to draw in student customers. From free Railcards to generous cashback schemes, banks are keen to win new young customers.
And it’s no wonder, since more than four in ten stay with their student bank until their late 30s.
once you’re settled on the size of overdraft you need, focus on the rewards you’ll get most use out of.
For students planning to travel home regularly, natWest’s student account, which offers a national Express coach card, could be handy.
Santander’s 123 student account offers a Railcard knocking up to onethird off train tickets.
If a course needs a huge number of books, then HSBC offers a £60 Amazon gift card to new students.
CLAIM TAX BACK ON A PART-TIME JOB
EIGHT in ten students have a parttime job, so ensure they don’t end up giving more away to the taxman than necessary.
Students must pay tax. often, e mployers make t hem pay emergency tax at 20 pc because of their irregular wages.
Since most won’t earn more than £204 a week — £10,600 a year, the current tax-free personal allowance — they’ll need to claim this back.
If you need to do this, call the Revenue on 0300 200 3300 and ask for a P800 form. Alternatively, you can do this online at gov.uk/
claim-tax-refund.
once you submit your claim and it is approved, you should receive a rebate within 14 days.
PICK AN UNLIMITED BROADBAND DEAL . . .
BLOCKBUSTERS, music downloads, gaming and video calls to friends at rival universities . . .
The broadband bill for a house shared by several students all wanting to use their gadgets nonstop can be astronomical if they pick a cheap capped tariff, which charges up to £6 every time a web use limit is bust.
Paying an extra few pounds a month f or an unlimited data package is better in the long run.
you’ll need a minimum broadband speed of a least 2mpbs to allow all that web use at the same time, but the more of you sharing it, the better connection you’ll need.
Best deals according to Money Supermarket are from Sky, which offers speeds up to 17mbps for free if you pay £16.40 a month line rental. Virgin offers ultra- f ast broadband up to 50 mpbs for £4.50 a month plus £16.99 line rental.
. . . BUT PUT A CAP ON MOBILE PHONE BILLS
IT’S easy to breach an allowance for calls, texts or internet use when first away from home.
If, like some parents, you agree to foot the bill and want to avoid nasty shocks, ask the network to put a bar on how much your child spends. This might typically be a £30 bill limit or not allowing any more than 500mb of data in a month.
When they approach that limit, they’ll get a text telling them they’re near their allowance. once it’s breached, calls can no longer be made and online access is frozen.
The alternative is to pay for an unlimited mobile contract, but they can be very expensive — often more than £70 a month.