It’s that time of year again when people start or go back to university and college so it seems like the ideal time to cover some pointers on how to cope, particularly in financial terms. There are plenty of traps you can fall into it if you are not careful, but thankfully, if you are clever with your money you can still make the most of your student life without crippling yourself financially.
- Don’t get credit cards! When it comes to credit cards, loans and overdrafts always remember that companies aren’t doing it out of the kindness of their hearts. A friend tried to apply for a loan but the bank said she had too good a chance of paying it back in time and it wouldn’t be in the bank’s interest to give him one. A rare show of honesty but it proves the point.
- Track your spending! I do this even now after I have finished with university. Its very useful to keep a log of how much you spend and how you are spending it. That way you can tell exactly where your money is going and make potentially useful conclusions from it. If you are spending a lot on eating out, you can cut back or go to cheaper places.
- Regarding nights out, it’s obviously a pretty common thing to do at university; going to the student bar, nightclubs etc. If you are worried about spending a lot, do what a friend suggested to me and just take out a set amount of money beforehand and then leave your bank cards or wallet at home. Be sure to do it when you are sober so you don’t keep forgetting how much you’ve taken and withdrawing more (this never happened to me I assure you…)
- Take advantage of what is on offer on campus. The biggest cause of spending too much tends to be boredom and if you can keep yourself occupied you will be much better off financially. Not only should your university offer lots of free/cheap events, when you do end up leaving you can say you made the most of your time there.
- There will always be kids with rich parents and those who willfully walk into debt at university, thinking they can deal with it a later date. Avoid hanging around them too much. People are always influenced by the company they keep and you may find yourself getting involved in their expensive lifestyles too.
- Don’t have a car. When you take into account maintenance, insurance and tax they are a very big expense. Where possible live in/near campus so you can walk and don’t have to drive to get there. Get used to using public transport whenever possible. If you do need a car you are bound to end up with friends who have them so subtly ask for lifts off them. Yes it is cheeky, but everybody else will be in the same situation.
- Textbooks are another big expense so buy used ones where possible (Amazon, eBay etc) and then sell them on when you’ve finished with them. Very rarely will you need to keep them once your course is complete anyway. It is always beneficial to have your own copy of a book but do also consider whether you can make do with taking the books you need out of the library too (don’t rely on this approach however, libraries have limited numbers of copies and its quite possible you could miss out).
- If you can learn to defeat that big impulse to buy stuff then you are well on your way to controlling your money. If you want to buy something ask yourself if you really need it. If you do, do you need it right then or can it wait? If you want to buy something, give yourself a time limit of maybe ten days before deciding to get it. That way your shopping impulses will have died away and you can decide rationally whether you want it or not.
September 3, 2006 Lifestyle Design
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