Savvy students read economics

Smart cookies should be planning for the future

Thousands of students will receive their A-level results on Thursday, which will determine what they do with the next few years of their lives.

More than 610,000 young people will be hoping to go to university this year.

While the number of applications received is 10% lower than in 2021, university is the first place many of us learn about money management – and those lessons can stay with us for life.

Costs and loans

Tuition fees alone often cost £30,000 for a three-year degree, and that’s before textbooks and other costs are factored in.

You can apply for a tuition fee loan but this can take up to six weeks to process so if you haven’t arranged this yet, you’ll need to get a move on.

These loans cover the full cost of tuition fees upfront and are paid directly to the university or college.

Maintenance loans are also available to help with some living costs like accommodation, transport and food but the loan is unlikely to cover all your costs, so it’ll be up to you to make up the shortfall, whether that’s by saving or taking on a part-time job.

Maintenance loans are means-tested so students from wealthier families will get less. But how much you get works on a sliding scale, based on where you’re studying and what your household income is.

Loans will be paid to you in instalments at the start of each term.

Those who excel academically or in sports or music should also look into scholarships, while bursaries and grants are available for those from lower household incomes. Check the UCAS website for eligibility.

The cost of a university education stays with most students for decades

Getting by

Set up a simple budget/ cashflow spreadsheet to work out exactly how much you will need to survive each month for the duration of your course.

This will help you to see how much you’ll need to earn or borrow to ensure your costs are met, and when your tightest financial periods will be.

Set up a second bank account for your spending and allocate yourself a weekly allowance to cover all your variable spending needs such as shopping and going out. Pay this to yourself on a Wednesday and when you’ve spent everything, don’t dip into your reserves or your good planning will go to waste.

The cost of a university education is something that stays with many students for decades, which is why I created the Student Survival Guide several years ago.

It is updated annually on my website and helps students avoid getting buried by a mountain of debt.

The guide also expands on some of the information above.

To get your free copy of the Student Survival Guide, go to warrenshute.com