Student Financial Planning
Student Financial Planning
Being a student is an expensive business, involving huge outgoings such as tuition fees, books, rent and living costs. With no income and a student loan that only goes so far, it is important to practice effective student financial planning to avoid getting into huge amounts of debt. With so many companies offering interest-free overdrafts, credit cards, loans, bank accounts and other opportunities to spend money, it is easier than you might think to fall into a university debt trap.
Some tips on how to practice effective student financial planning include:
- Set a budget, accounting for rent, tuition fees, books etc, and stick to it. If you’ve spent the week’s budget, going out will have to wait until next week
- Try to make your student loan and maintenance grant stretch as far as you can to avoid the need for credit cards
- Use an interest-free overdraft if you do find yourself in financial hardship, credit card interest-rates can cost a fortune
- Shop in bulk with your housemates, this can save money on food, household goods and frequent trips to the supermarket
Effective student financial planning means you will not have to graduate university with a huge amount of debt as well as a degree.
