"So what do students blow their cash on? Yes, you've guessed it– alcohol, travel, food, accommodation – but not necessarily in that order. As a student myself, and about to enter my final year, I know that budgeting can be tough. But there are a few sneaky ways to make sure you're left with some money (and dignity) at the end of the year:
Book travel in advance
Most people know that by obtaining a young person's railcard, you automatically receive one third off all rail travel, but you can lower your costs even further by booking in advance.
I know it's often hard to know what you are doing next week, let alone next month, but a lack of organisation costs. To give you an idea, a Virgin train from Leeds to London will only cost you £10 if you book a month ahead, while setting you back more than £50 if you book on the day. You can travel from London to Manchester with Megabus for the ridiculously cheap price of £1 if you book about six weeks early. If you know you are heading home for a specific weekend, be prepared.
Free rides
I arrived at university with wheels and I quickly found myself ferrying friends from A to B all too often for free, with the mindset that "they'll pay me back later". Oil prices are rising again, so if you have a car, ensure people contribute to petrol costs if you give them a lift.
Even better, if you're the active type, or even if you're not, get a bicycle. It's free and chances are, quicker than the bus. If you are a student in London using public transport daily, you would have to spend £98 monthly to travel in zones one to four. Using a bicycle as much as possible could save you £1,176 a year.
Stick to the list
In our first month of living together, my five housemates and I spent an embarrassing £200 each on food and drink – £1,200 altogether.
There were a couple of reasons for this. First, we never stuck to the shopping list, but would end up strolling the aisles haphazardly adding pointless items such as endless condiments and herbs that sat in a cupboard for the rest of the year.
Second, we all thought meat was an essential part of every meal. Plan your meals carefully and only buy what you need. Try to buy the cheaper store brand when possible. Buying your food and cooking it together as a house is far more economical and enjoyable than hoarding your own food stash in a plastic bag in the fridge.
Go vegetarian
In a moment of financial crisis, going vegetarian can be a massive cost-cutter. A meat-free diet may not sound appealing at first, but there are some great vegetarian recipes online at sites such as www.jamieoliver.com. The amount of free time students have is staggering, so use it to make an exotic new dish.
Find discounts
If you are going out for a meal, the internet abounds with discount vouchers that halve the cost of your meal. Tootsies, GBK and ASK all have offers www.vouchercodes.co.uk/restaurants .
Make the most of your student card by finding the latest deals on www.studentbeans.com – it has offers such as two for one cinema tickets, 50pc off selected fashion retailers and even a half-price eye test. The Bargain Hunter page in Your Money regularly lists discounts and vouchers; it's on page 10 of this section today.
Beware too much booze
At four in the morning it seemed like such a good idea to blow your remaining £30 on a round of tequila slammers. But your hangover will be even worse if you've got money problems to worry about as well.
While boozy nights out are an integral part of many students' lives, bouts of memory loss and an empty bank account don't necessarily equal a good night. Party within your funds and within your physical capability – it's actually not as much fun as it sounds to hit the town every night of the week.
Daily pub sessions can be a further drain on your finances. Stay in with friends for a cheaper night. A bottle of wine from an off licence will cost you the same as a glass in the pub.
Martin Lewis, the money saving expert, advised students to "go out at the end of the month, when you know you've covered all your financial necessities. Unless you are a single woman who may need to take a card for a taxi home, only take out the cash you intend to spend."
Be careful with your possessions, particularly when you have been drinking. I unwittingly thought it would be safe to leave my bag on the floor next to me in a nightclub, allowing someone to steal my iPhone and wallet.
If you are going out, don't take all your cards with you or even better, just carry cash. Insure your personal belongings – Julie Owens, head of home insurance at moneysupermarket.com said: "As students are three times more likely to be a victim of theft than any other age group, it is essential for them to have adequate insurance in place to protect their belongings."
Buy cheap books
University libraries can be infuriating. Every time I am preparing for a tutorial and manically searching the library for one particular book, it is always on loan. Some superhumanly organised student has taken it out weeks before.
Unless you are always 10 steps ahead of your lectures, there is often little option but to buy the reading material at extra cost. Amazon.co.uk is the cheapest way to purchase well-known books.
For under £3 you can buy a second-hand copy of the book you need and even sell it after you've used it.
But university libraries are certainly useful for one thing. DVDs. It's free to borrow them from the library, and there's often a pretty satisfying collection. So next time you are contemplating a night in, hit your library, not the nearest rental shop.
Get a job
A holiday job or part time work at university will boost your funds.
Plus if you earn less than £6,475 – the current personal allowance for everyone aged under 65 – it is tax free. Ask your employer for a P38 form"
For more debt advice why not have a look at the site.
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( 3 / 253 )Interest rates have today been held at 0.5% by the Bank of England which will come as a relief to many.
"The Bank of England today kept interest rates on hold at 0.5% and its quantitative easing (QE) programme steady at £175bn, defying some City speculation that it might ease policy further.
The monetary policy committee said in a statement it would keep its QE policy under review and expected its purchases of assets to continue for a further two months until it reached the £175bn total announced a month ago.
The MPC did not, though, announce a cut in the interest rate it charges banks for overnight funding, something Bank governor Mervyn King had said it would consider if it felt commercial banks were hoarding the money they were getting in exchange for assets sold to the central bank.
The lack of change in interest rates means they have been at a record low of 0.5% for sixth months running.
David Kern, chief economist at the British Chambers of Commerce (BCC), said: "Following last month's welcome decision to increase quantitative easing to £175bn, we are not surprised that the MPC has chosen to persevere with the current programme and keep interest rates at 0.5%. However, persistent weakness in lending to businesses, particularly to small firms, poses serious risks to the early signs of economic recovery.
"As a temporary measure, the MPC should consider cutting the interest rate paid on deposits kept by commercial banks at the Bank of England, and in some circumstances make this rate negative. This might discourage hoarding of cash and encourage the banks to lend more."
He also warned that the economy remained fragile and urged the MPC to expand its QE programme to £200bn, which King voted for at the MPC's August meeting.
There is increasing speculation in the City that, with inflation low and the economy still dogged by a weak banking system and the need to tighten fiscal policy in future to reduce the ballooning budget deficit, interest rates could stay very low for several years"
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( 3 / 265 )Chances are that you will have an arranged overdraft on your bank account, however if you do not and you go overdrawn you can be charged a huge amount of money for this, even if in some cases it was the banks fault.
"The bank – which is now largely owned by the Government - has significantly reduced its unauthorised overdraft charges.
For example if a cheque is bound you will now pay just £5, down from £38 and the fee for exceeding your limit has been halved to £15.
Recently Which? "named and shamed" the RBS group for charging some of the highest overdraft fees.
These changes come just weeks before the new Supreme Court is due to rule on whether the Office of Fair Trading can assess these charges for "fairness".
If the court rules in favour of the OFT, then it is likely that banks will be forced to reduce these fees.
So this move could be seen as a pre-emptive strike, designed to show the authorities that they have fixed the problem and heading off more prescriptive regulation and retrospective payouts.
A spokesman for the banking industry, who asked not to be named, said: "Most banks accept that this fees will be lower in future. But what many are really concerned about is opening the floodgates to compensation claims. If banks are forced to repay these charges the bill could run into billions of pounds."
Prior to this court case, the banking industry refunded an estimated £560m to customers who protested that such penalty charges were unfair. However since April 2007 – when this OFT test case commenced – all claims have been frozen, except for cases where customers can prove they are suffering "financial hardship".
RBS isn't the only bank reducing these charges. Last year Barclays reduced its overdraft fees while Lloyds Banking Group – which now runs both Lloyds TSB and Halifax, adjusted its charges at both banks.
However, only Barclays charges less than the recommendation made by the OFT three years ago that these penalty fees should be no more than £12.
In total RBS/ NatWest has reduced five of the main charges levied each time a customers breaches their overdraft limit. The interest rate charged on unauthorised borrowing is reduced from 29.69pc to 19.24pc.
The "monthly fee" for breaching limits has been cuts from £28 to £20. In addition to these charges, customers are also charged a fee for each transaction that is either "bounced" or paid so taking them over their limit.
Often a series of payments will go through, landing customers with multiple charges. As a result customers can end up paying fees that are far greater than their overdraft infringement.
The "rejected transaction fee" has been reduced from £38 to £5; "accepted transactions" which take you overdrawn will now cost £15 as opposed to £30; while "accepted transactions" that have been accompanied with a cheque guarantee card will be reduced from £38 to £15"
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( 3 / 267 )With interest rates as they currently are, you may find that by switching your mortgage you could obtain a better mortgage deal and save yourself some money. However finding a good deal can often seem like a minefield so you need to make sure that you do your research.
"TWO-YEAR FIX FROM FIRST DIRECT, INITIAL RATE 3.49 PER CENT
If you would rather not have to worry about interest rates changing and want to be sure that your monthly repayments are fixed for a set number of years, there are a number of competitive fixed-rate mortgages on the market.
The lowest two-year fixed rate is from First Direct, according to Mr Hollingworth. The rate is 3.49 per cent, but borrowers will need to be careful to factor in the large fee, £1,298, to make sure that it represents the best deal for them. The rule of thumb is that the bigger the loan, the less significant the fee.
This mortgage is also for amounts of up to 60 per cent of the property value. For people wanting to borrow 75 per cent, the lender will charge interest at 3.94 per cent - "this also represents good value", Mr Hollingworth said.
Alternatively, moneyfacts.co.uk , the information service, recommends NatWest's two-year fix for 75 per cent loans at 3.69 per cent with a fee of £799.
FIVE-YEAR FIX FROM NEWCASTLE BUILDING SOCIETY, INITIAL RATE 4.99 PER CENT
Some borrowers are reluctant to fix for just two years, on the basis that many economists expect Bank Rate to remain very low for some or all of that period, making a variable rate such as HSBC's more attractive. After all, why fix at 3.49 per cent for two years if you think you will pay 1.99 per cent for two years with a tracker?
But as few expect rates to remain so low for five years, a longer-term fixed rate could make more sense.
Newcastle's five-year fix charges a rate that ranks alongside the lowest available over that period but is also offered for up to 75 per cent of the property value, where others, such as a 4.95 per cent deal from HSBC, are available only at 60 per cent. Mr Hollingworth said: "This is a great deal for those looking for medium-term security." The fee is £994.
THREE-YEAR TRACKER FROM ABBEY, INITIAL RATE 2.99 PER CENT
Another mortgage that illustrates the fact that borrowers will, initially at least, pay less with trackers than with fixes.
This loan charges 2.49 percentage points above Bank Rate for three years, meaning that you would currently pay 2.99 per cent. At the end of the introductory offer the rate reverts to Abbey's SVR, currently 4.24 per cent.
Borrowers need a deposit of at least 30 per cent and there is a fee of £995, although Abbey will pay for the valuation and legal work.
OFFSET LIFETIME TRACKER FROM WOOLWICH, INITIAL RATE 2.97 PER CENT
Some borrowers would prefer a loan that they can stick with for the whole term, avoiding the need to remortgage every few years.
This mortgage tracks Bank Rate for the entire term, charging 2.47 percentage points above the Bank of England rate. Borrowers need a 30 per cent deposit and will pay a fee of £1,499; there is also an early repayment charge for the first three years.
As this is an offset loan, borrowers can use their savings to help reduce the interest bill"
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( 3 / 271 )You will no doubt have heard a great deal about PPI's in the last few months due to this product being mis-sold. However recent news is that Barclays are hoping to challenge the ban on the sale of these.
"Barclays will begin its bid today to have a future ban on the sale of controversial payment protection insurance alongside credit agreements lifted.
The group is challenging a recent decision by the Competition Commission to ban the sale of the insurance alongside credit cards, loans and mortgages from October 2010, with providers instead having to wait for seven days before they can contact customers to sell them the cover.
The move is one of a number of measures which will be introduced next year in a bid to increase competition in the market, alongside changes to make it easier for people to shop around for the cover and to change providers.
Payment protection insurance (PPI) covers loan repayments if the holder is unable to work due to an accident or illness or if they lose their job.
Barclays is arguing against the point of sale ban on the grounds that it is not justified by the evidence collected as part of the Competition Commission’s investigation.
A Barclays spokeswoman said: “The Barclays appeal does not challenge the whole report but is targeted specifically against two points.
“The main area of concern is the point of sale ban which, it is felt, is not justified by the evidence that has been provided.
“Additionally, the scope of the market definition set by the Competition Commission is being challenged.
“The decision to appeal these points has not been taken lightly. However Barclays will continue working on the implementation of all of the remedies contained in the Competition Commission’s report as they are applicable.”
The group is being supported by Lloyds Banking Group, in which the Government holds a 43pc stake, and Shop Direct Group Financial Services.
It is being opposed by the Competition Commission and City watchdog the Financial Services Authority.
The case is being heard by the Competition Appeal Tribunal and is expected to last for four days, although a judgment is not expected for another two months.
Consumer group Which? called for the point of sale ban on PPI to be upheld.
The group’s chief executive Peter Vicary-Smith said: “PPI has been widely discredited, so it’s important that it’s sold separately from other financial products to help consumers make informed choices about how best to protect their finances.
“Rather than appealing the Competition Commission’s decision, Barclays should concentrate its efforts on developing protection products that offer better cover and value for money to its customers.”
The changes being implemented by the Competition Commission are expected to lead to a steep fall in the £4 billion a year that banks and insurers receive from PPI sales.
The product has been the subject of controversy in recent years after consumer groups complained it was being mis-sold to people who would never be able to claim on it, while the practice of bundling it up into loans meant that some people did not even realise they were buying it"
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