Moving on to university can be a daunting yet exciting prospect for many students. One of the more daunting aspects being the financial balance of attending university, keeping in touch with friends and also keeping in touch with your bank balance. One other cost carried from home may be a car, many sixth form students see it as the perfect time to learn to drive and often finance a car once they have passed.
Once moving to university this cost can cause problems unless managed correctly. Many students move to university and within months find themselves in financial irregularities which aren’t always easy to escape from. This is often caused by a rush of blood to the head with a four figure bank balance for often the first time. Many students notice this bank balance and fly to the nearest shops to stock up on electrical products and clothes which in reality they may not be able to afford.
Getting a head start on managing finances is often the key to staying financially stable during university life. Before going out and blowing a student loan on a fancy new TV or an expensive pair of jeans which has caught the eye, it is worthwhile outlining a prudent financial budget taking into account all factors such as paying for utility bills, rent and the cost of keeping a car while at university. Many students will opt to leave their car at home and choose not to insure it while at university. After all there is the possibility of insuring the car over the holiday periods throughout the year, but some of the younger petrol heads will decide that’s not an option and will try and make it work. Running a car can often be an expensive affair especially for somebody working on a tight budget, costs such as road tax, MOT, servicing and most of all petrol can all mount up.
Making sure this is budgeted for is key to keeping financially stable.
To produce an effective budget split the year up into months and calculate all costs which cannot change and then try to be prudent on the costs which may vary. Deduct these costs away from each month’s income, calculating whether a part time job needs to be factored in to increase monthly income. Always sticking to this budget is important overspending in one month will have to be offset against the following month with a budget cut. Trying to keep on top of this budget throughout the year will pay dividends at the end of the study period, hefty overdrafts can often be a problem when a student graduates and helps minimise the debts already taken on with the cost of study.