Money management 101 for parents and students

Ten money-savvy tips for all the family. By Precious Adesina

FOR PARENTS

THE BOTTOM LINE

UK universities may charge up to £9,250 in tuition fees – though some charge less, so make sure you check. Living costs are location-dependent; most universities offer an estimate of what students will need.

A STUDENT LOAN IS YOUR FRIEND All UK students can get full tuition-fee loans from student finance, but maintenance loans depend on household income, where they study and how long for. The calculator at gov.uk/student-finance-calculator will help you work out what you’re eligible for.

Remember that student debt won’t affect a student’s credit rating and is wiped after 30 years. Your child will only have to repay a percentage of what they earn over a certain threshold, so if you’re not sure they will be a high earner for most of their career, a loan could save you both money.

“If your household has experienced a loss of income due to the pandemic, you could be entitled to a higher maintenance loan,” says Dr Dominique Thompson, a young people’s mental health expert who teamed up with student accommodation platform mystudenthalls.com to launch a student wellbeing guide. Check out gov.uk/ repaying-your-student-loan

THINK OUTSIDE THE BOX Student finance is the main source of university funding, but there’s a whole world of scholarships and bursaries out there. “There are thousands of overlooked grants offered by universities, private companies and charities every year. Unlike loans, most of these funds don’t need to be paid back,” says Dr Thompson. Check out the Scholarship Hub: thescholarshiphub.org.uk

DECIDE WHAT YOU CAN GIVE Even with all the support available, many students still end up looking to their families for help. Sit down with your child, work out a budget and discuss how you might chip in.

TEACH THEM THE BASICS University may be the first time your child has managed their own money. Take your child on a food shop to give them an idea of how much things cost.

FOR STUDENTS

DON’T DREAD STUDENT DEBT Remember: no amount of debt will prevent you from taking out another loan, credit card or mortgage once you graduate. You’ll never be asked to repay more than you can afford.

SPEAK TO YOUR UNIVERSITY “Universities have been allocated funding for student hardship and mental health support. Search ‘student funding’ on your university’s website,” says Dr Thompson.

HIT THE JOB BOARDS

If you plan to work part-time, get your CV ready to go for when you move to university. “Working part-time will help balance finances in the moment, and help for future job prospects, too,” says Adam Bullock, UK director of money-saving website Topcashback. “With a wealth of websites that cater to remote working, job opportunities are no longer confined to a university city.”

DON’T WING IT – BUDGET One way to alleviate financial stress is to figure out your incomings and outgoings and, hey presto, you have a budget. Experts at student discount website Student Beans suggest adopting the 50/30/20 rule as an easy way to budget money – 50 per cent of your income should go towards necessities, 30 per cent on leisure, and 20 per cent should go towards savings.

BANK BETTER

When looking for a student account, don’t be distracted by offers of freebies. “Check what each bank is offering and decide if it’s right for you,” says Anthony Morrow, co-founder of financial advice service Openmoney. “While an interest-free overdraft is a great idea, remember that it is not free money. You will need to have a repayment plan.” Bullock suggests downloading banking apps like Splitwise, Monzo and Yolt which allow students to manage bills, leaving little space for overspending. “Budgeting at university paves the way to a financially stable future.”