It is important to manage your student debt while attending university. To avoid going into overdraft, start the school year by creating your student budget. This post will provide you with more tips for maximising your student loan each term.
Break Up Your Student Loan
When you get your student loan, think about how you can make the most of it. To get a handle on your money in university, divide your loan into parts. To begin, use a spreadsheet to total your income, such as your student loan, any grants, bursaries, sponsorships, or scholarships you are qualified for, money from your parents, earnings from a job, and any savings you are not saving for after your course. Then deduct your necessary outgoings, like tuition (if you pay them), rent for your accommodation, any house expenses (if they are not included), any transport or car costs, your phone bill, and food. The remaining funds can be divided into sections and spent on items like books or course equipment, social activities and entertainment, additional travel and going out.
Only Use Your Overdraft In An Emergency
Try not to go into your overdraft since you will have to pay it back. Keep it for when something unexpected happens. Rates and the amount of overdraft you have may vary depending on the student bank account you pick. Consider it an emergency piggy bank with the money you may dip into if required, but you’ll have to pay it back eventually because it’s not yours. It’s tempting to consider your student overdraft as free money, but this isn’t the truth – it’s a loan. Make sure you only utilise your scheduled overdraft since falling into an unscheduled overdraft is bad for your credit score, which is essential in the future.
Use Student Discounts
When you use discounts, you can stay within your student budget. In the long run, these websites, apps, and search engines will assist you in sticking to your monthly budget. Keep an eye out for student-specific offers and discounts that are floating about or that local shops in your town or area may be advertising. Some savings and deals are only available during specific times of the year, so be sure to read the terms and conditions.
Consider Getting A Part-time Job
Most students have a financial shortfall each month, suggesting that Maintenance Loans are insufficient to cover living costs. Students will typically work part-time to help pay for their education. A part-time job might help you make the most of your loan. This money will help you fund your university life. Check with your university to see what they say about having part-time work since some courses require more hours than others. Look for employment ahead of time and improve your CV.
Set Yourself A Weekly Student Budget
You may create a weekly budget using the guidance and information from your spreadsheet calculations. Try to stick to your budget, but don’t be concerned if you don’t; it will just help you stay on top of your finances.
Budget Within Your Online Banking App
Install an online banking app on your phone to receive balance updates. All your incomings and outgoings are in the palm of your hand. According to research, having access to an overview of where all your money is going might inspire you to have far better control over your spending. New banks, such as Monzo and Starling Bank, now allow you to set monthly spending budgets via their apps. You may set a spending limit and keep track of what you spend your money on to have more control over your student expenses. The app will notify you when you are close to reaching your limit and will prevent you from spending any more money.
Make the most of your loan by following these recommendations, and you will be in charge of your money as a university student.