How new students can get to grips with finances

With many students more likely to worry about money than their exam results, Vicky Shaw looks at how to be a high-flier when it comes to finances

GOING away to university for the first time can seem daunting for a variety of reasons. It’s also likely to be the place students get their first taste of what it’s like to manage their own money.

Here’s how you can make the grade when it comes to swotting up on financial know-how:

MONEY IS A MAJOR CONCERN Money management is such a big concern among students that many freshers see it as more of an issue than how well they are likely to perform on their course, new research suggests.

Ranking a list of top concerns they had in their first year, two in five (40%) students said that “managing my money” was a key worry, significantly higher than the one in three (33%) who put “achieving academic success” at the top.

The study among more than 2,000 students aged 18 to 25 was conducted by the National Union of Students on behalf of student insurance provider Endsleigh.

Many young people are living in their overdrafts week in, week out, the research found, with just under half (49%) of students with an overdraft saying they’re always in the red, while more than one in four (28%) regularly use their overdraft.

Worries about money management aren’t only for freshers – more than half (55%) of university students surveyed said they haven’t made a plan for paying off their personal debts.

While the majority of students claim that before starting university they felt either quite (45%) or very (17%) prepared, three in five (61%) felt university life was more expensive than they had expected.

START THINKING ABOUT STUDENT FINANCES OVER THE SUMMER

While starting university can seem overwhelming, spending some time over the summer making a money plan may help students get into good money habits, which could last through university and beyond.

Alex Jones, student spokesman at Endsleigh, says parents can also help, by passing on their own experiences of planning and budgeting: “There’s still time to talk about money management before they head off to freshers this year. If you can help them to plan ahead by sorting a budget and organising things they tend to put off – like opening a good student account and getting any gadget and contents insurance they may need – they’ll be able to concentrate on their studies, and you can relax that they’ve got a plan in place to manage their funds.”

MAKE A MONEY PLAN

Here are some tips for students from Endsleigh:

Use budgeting apps. A wide range of mobile apps can help you manage your monthly spend. They tend to be simple to use and many are free. Understanding what is spent where will make a big difference to having the funds for outgoings that matter.

Talk about how you manage your money. Be open about what you’re doing with your friends. Nearly everyone at uni is in the same boat, so if you need to swap a trip to the cinema for a cheap and cheerful