Keep your finances in check at uni

For the most part, being a student is fun. Three or four years of good times, expanding your mind and independence. However, your newfound freedom can only be an endless party until the cash runs out.

The temptation to spend your cash on nights out is never far away. When you see that first student loan payment sitting in your bank account, it looks like loads of money, so why not spend some of it on having a good time?

But even with cheap deals on drinks in the student union, your spending on going out can soon add up. Socialising costs students an average of £675 a year, making it their fourth-biggest weekly outgoing, even ahead of books.  

Unexpected costs

It’s not just buying drinks you have to worry about when you’re out. There are taxis, entry fees to nightclubs, and food too.

Julia Manley is a Senior Student Money Adviser at Anglia Ruskin University. She says: ‘Lots of students come to see me about financial problems, sometimes down to too much socialising, especially during the first term.

‘It’s hard being away from home for the first time and the situation is not helped because student loans are paid each term rather than weekly or monthly. A student on full funding could receive around £2,000 for their first payment, which can seem like a large amount but of course isn’t when it has to last 3-4 months.’

How to be sensible with your cash

So how can you make sure you keep your spending under control?

It may sound simple, but keeping an eye on your outgoings is important. Research has shown that eight out of 10 students don’t keep track of their finances.

 Julia says the first thing you should do is draw up a budget for the year. ‘If your expenditure is more than your income, you need to work out you are going to deal with that, either by reducing your expenditure – by, for example, not going out as much,  or by increasing your income with a part-time job,’ she says.

 There are several online budget planners that can help with this, including Uniaid’s Student Calculator, www.studentcalculator.org.uk.

Julia also recommends getting a student bank account so you can take advantage of the interest-free overdraft and avoiding credit or store cards.

Saving money when you’re out

There are loads of easy ways you can cut down your spending when you’re out too.

Unless eating out is part of the plan, eat before going out for drinks to save cash. There are extra benefits too: drinking on a full stomach will mean you won’t get drunk so quickly and ensure those good times don’t take a turn for the worse.

Stick to the Government’s recommended guidelines on alcohol and you won’t spend too much. It is advised that men drink no more than 3-4 units a day and women no more than 2-3. To give you an idea of what that means, there are 1.5 units in a small (125ml) glass of wine, one unit in a single (25ml) shot of vodka and more than two units in a pint of standard beer.

Why not alternate soft drinks with alcoholic drinks when you’re out to make sure you stay within these guidelines? Drinking plenty water and soft drinks will also keep you hydrated.

Drinking within the recommended guidelines will make it easier to get home safely – and cheaply. You should feel confident and alert enough to go home on public transport (although, drunk or not, you should always travel home with a friend). If you do get a cab, you’ll be vigilant enough to check if you’re getting into a licensed taxi.

Steer clear of rounds. This often ends up more expensive than just buying drinks for yourself. Even if you don’t want to drink any more you’ll feel like you still have to stand your round.

References

[1] NUS Student Experience Report 2008 http://www.nus.org.uk/PageFiles/4017/NUS_StudentExperienceReport.pdf

[1] Credit Action, Debt facts and figures 2006 http://www.creditaction.org.uk/assets/PDF/statistics/2006/november-2006.pdf

Page last updated by

Root User, 19 Apr 2010.

Page checked on

02 Oct 2009