Student life can be an expensive time when you consider all the essentials that need to be organised. Rent and household bills are a regular monthly outgoing, cupboards need to be filled with food and study materials need to be bought.
Learning how to budget will help with student finances and having the right bank account can make a world of difference.
Budgeting doesnt have to be difficult and once you get into the swing of things, managing your finances will become easier. One easy way to avoid overspending is by setting yourself a specified amount that you can spend each day.
It is easy to fritter money away especially with the temptations of afternoon coffees and nights out but if you carry only the amount of cash you allow yourself to spend each day then overspending becomes less likely.
If you share a house or flat with others then make sure all financial outgoings are organised from the outset. You could make a list of the consumables that everyone shares, from teabags to bin liners, and calculate a figure for everyone to contribute each month. Apply the same rule to household bills such as electricity and telephone and you will be able to gain an accurate idea of what your monthly expenditure will be.
When you first start searching for a student bank account there are several ways to weigh up which is the best for you. Compare the interest rate paid when your account is in credit as well as the overdraft facilities available. Some banks offer tiered planned overdrafts so you can apply for a lesser amount in the first few months and can then increase this after a certain time period.
If you would rather have a fixed overdraft limit then look out for untiered options that guarantee a set amount will be available. Having an interest free overdraft is common with student bank accounts so ensure you arent paying for this facility.
You will more than likely need a debit card so you can withdraw money at home as well as abroad. You may also want to investigate getting a student credit card which can help to pay for bits and bobs you may not have the upfront cash for.
When youre just starting out with your own credit card you should try to pay off your balance each month as opposed to carrying an amount over into the next month. You can easily do this by only using your card for purchases you can afford. Its important to avoid using your credit to live beyond your means as this can lead to financial problems.
In order to be considered for a student credit card you need to be aged over eighteen years old. You must be resident in the United Kingdom in order to open a bank account there and its important you dont have any County Court Judgements on your financial records as this could result in banks refusing you credit.
Special report