Money Matters
It's a new year, with new challenges and new expenditures. Finances can be tight whilst studying so take our advice and get sorted. The Source will support and guide you through your Money Worries. Our advisors are available to help you budget and offer advice on Financial Issues, including further funding options and cost reduction tips.
Top 5 Urban Myths
As a student I can get away with not paying my rent
Not true – if your rent is in arrears then you are in breach of your contract which is a legally binding documentation and you could potentially be taken to court.
Its cool to get 'illegal cash-back'
As 'cool' as you may feel at the time its still an amount that will be added to your debt and be expected to be paid back – student or not, there's no getting out of it.
It's easy to get a second student bank account, which means twice as much overdraft
Yes, some students have been known to play the system and manage to sign up for two separate student accounts, but we wouldn't say it was easy and not only would you be looking at twice as much to pay back, you'd also be committing a fraudulent offence.
You'll never be as poor as you are when you're a student
Not necessarily – if you're slap happy with your cash whilst your study, don't forget that you'll be expected to pay it all back as soon as you land your first job – the more you spend the more debt you'll have and that's not even considering the delights of Council Tax and such that are all still to come.
Leaving the country for a year means I don't have to pay off my debts
Rubbish – believe us if that we're the case we'd all be doing it. You're debts are your own and responsibility should be taken for them right from the word go - It's easier to track you down then you might think.
If you're going to ignore our advice above, and you're already started to pile on the debt – at least follow these following tips.
Budgeting
So you've just received you're student loan and you're ready to go wild with the spending, but before you do – STOP AND GET REAL!
As a student you do have financial responsibilities that you've committed to and therefore are obliged to meet. If you spend a little time now budgeting your cash you should find that theirs plenty to do both.
Here are some of the costs that you will incur as students and ways in which you can look to reduce them.
- Tuition Fees
- These will depend on the support you receive from your LEA, but the University does offer students the chance to pay them in instalments which tend to leave you better off when trying to budget.
- Course Costs
- Don't over look additional costs of books and stationary, however before you go out and spend a small fortune on new material look into buying texts second hand, renting from the Library or even sharing books where possible with fellow course mates -You'd be surprised what you can save.
- Accommodation
- Rent for accommodation can vary depending on the area that you live in, so it's always best to look around. Remember you will be asked to pay a deposit and don't forget to factor this cost into your budget.
- Utility Bills
- The size of the accommodation will depend on how much you use your utilities. Bills tend to come on either a monthly or quarterly basis and setting up direct debits with companies can often cost you less. Always take meter readings as soon as you move in to avoid being overcharged – you don't want to find out you've been paying for the last set of tenant's mistakes.
- Telephone
- Most students have mobile phones as their main telephone. It's always worth shopping around for the best deals though as there're plenty of special offers available.
- Insurance
- This is a vital expenditure and although may seem unnecessarily it's worth every penny. If you were to be unlucky enough to be burgled or your house caught fire, losing all your possessions and being left with nothing to fall back on is not a pretty sight. Before you do anything check whether you're covered under your parents insurance. For those of you who are not, shop around and make sure the package that you get covers all your belongings.
- TV License
- This is another must unless you want to take the risk of getting caught and finding a spare £1000 from somewhere for the pleasure. You can however sort it out and pay in instalments so that you don't find you're paying for a full year that you may not need. If this does happen though, don't hesitate about claiming back the refund you'd be entitled to.
- Food
- The cost of essential needs such as food varies enormously depending on where you shop. It's worth considering the benefits of sharing with your house mates, buying in bulk where you can and even shopping in more economy outlets. You don't have to be the next Jamie Oliver to learn how to eat well on a budget – and remember although takeaways are great and an easy option they're also an expensive way of life.
- Leisure time and Clothes
- We all know how tempting it is to cash in the first loan instalment and blow it on the ultimate shopping experience. In fact for the majority of freshers this is probably the first time they're had so much accessible cash. However as mundane as it sounds it is worth budgeting this to some degree so that you're able to enjoy yourself throughout the year and not just for the first couple of weeks in each semester.
- Always be on the look out for student offers where a flash of the old NUS card can offer you some serious reward.
- Travel costs
- Student rail cards might just prove to be one of the best investments you make whilst studying as the discounts available are well worth the initial payout.
- Health costs
- Don't fall into the trap of paying out unnecessarily just by visiting the doc. One of the first things all students should be looking to do is fill out a HC1 form, available from any doctor's surgery, enabling you with the possibility of claiming for help with your health costs.
Top Ten Budgeting Tips
- As dull as it sounds, plan your finances and produce a budget as early as you can. – once you've got it
- Remember to try and spread your funds across the whole year and not just the first couple of weeks.
- Be Realistic – I know it's boring and you'd much rather worry about money when it comes around but you'll thank us for that piece of advice in the long run.
- Shop around with friends for food and buy economy value brands – you'll have plenty of time in later life to become choosy.
- Remember to pay bills on time – if you don't you'll only end up having to pay a further charge, which lets face it you probably can't afford.
- Take full advantage of student offers where you can – Press for NUS
- Try and monitor your finances regularly so that you have an idea what's going on - not knowing isn't going to make the problem go away or make the lack of cash any easier to handle.
- Control your overdraft properly – its not the endless stream of money that you once believed continued to flow, and you could do without the bank breathing down your back for repayments once you've over spent.
- Address any problems that you have as soon as they take place – not opening letters, ignoring phone calls and generally sticking your hand in the sand certainly doesn't mean its not happening, and as clichéd as it is 'Talking can help'!
- Seek help when needed – The Source advisors will always be happy to offer some confidential advice and guidance on how to get yourself out of a potential mess.
Weekly Budget Planner
Try filling out this budget planner to get a clearer idea of your money situation. If at the end you find that there is a shortfall it is important that you consider ways of increasing your income to prevent you running into problems. The Source can advise you on a number of potential further funding options which maybe of use – just pop in and have a chat with one of our advisors to find out more.
If you've managed to do all this and you still find you're struggling for cash its well worth considering opting for a part time job. There are plenty of opportunities available for you that can be moulded towards your individual needs. It's a great way of meeting people, gaining experience and the extra dollar always comes in handy.
You should utilise this as a good outline of what you should be looking at spending on a weekly basis. Obviously any money saved from one week to another will no doubt balance its self out later on, however it's a good idea to do a separate budget planner any time your financial situation changes so that you can still be clear on where you stand.
Further Sources of Funding
There are various sources of funding that you may well be entitled to whilst studying as a student so for further information please get in touch.
If you are experiencing financial difficulties we are here to help. The obvious choice initially worth exploring is the Access to Learning Fund. We would always encourage students to book an appointment with us to discuss this in more depth but whilst you're here it may be worth checking it out for yourself at http://www.derby.ac.uk/csd/online_forms/latest_forms/GeneralNotes0506.doc
For further information regarding your Access to Learning Fund options and general funding information for students take a look at the following sites: http://www.dfes.gov.uk/studentsupport/administrators/dsp_section_65.shtml and www.egas-online.org
International Student Funding
What will it cost to study in the UK?
Overseas students are not entitled to financial support form the UK Government. You are to contact the Ministry of Education, other agencies or voluntary organisations in your home country for assistance, or sponsorship to finance your studies. The University does offer a range of scholarships for new students but competition is high.
There are two main costs when studying in the UK which you must have funds for prior to your arrival, as there is very little financial support for overseas students.
- 1. University Tuition Fees
- For your degree course and any English language programme you register for. Check the amount for the course with the Admissions department at the University. Your fees will include teaching, assessment, examinations, library and computer facilities, and welfare support. It does not cover fieldwork, books or living costs.
- What are 'Bench Fees'? – These are additional fees that certain courses charge to pay for consumable items like laboratory equipment or chemicals. Check with the Admissions tutor if you need to pay.
- 2. Living Expenses
- This depends on the type of course you are studying and whether you are single or bringing dependants. The British Council figures allow for a modest living, but do not include travel costs from home, running a car or owning a mobile phone.
The British Council suggests that
- Single Undergraduates students should allow for £5,250 per year
- Single Postgraduates students should allow for £7,000 per year
How much cash should I bring?
You should have enough money to cover the first few weeks of your accommodation and food expenses until you open a bank account, which can take 2-3 weeks to finalise.
You are not advised to bring large amounts of cash with you. Instead, bring the majority in traveller's cheques, and take out travel insurance for your first few weeks of stay in the UK.
How do I pay my fees?
You can pay in full at the beginning of the academic year or in three instalments.
How do I open a bank account?
Speak to your bank in your home country, find out about the different ways of transferring money to the UK and what costs and security will be involved. Ask if they can recommend a bank in the UK who they have a good working relationship with and, if so, can they help you to open an account with them? Also ask whether you can use your home country bank's cash card to withdraw money form UK bank machines?
The main bank of campus at Kedleston road is Natwest (located in the Atrium) however most major banks can be located in the city centre of Derby, including Lloyds TSB, Barclays Bank and HSBC.
Before opening a Bank Account consider:
- What services will the bank provide (cash card, cheque book, overdraft facility) and what charges are included?
- What arrangements can be made to transfer your money from your home bank and what costs are involved?
- What documents will they need to see? Many UK Banks will need to see your passport, a letter from the University confirming your student status and your accommodation contract to provide proof of a UK address.
How do I get a letter from the University?
You will most likely be presented with a letter to confirm you are a student when you register for your course. If not, contact the Student Information centre, who will be able to produce this letter once you have enrolled.
Will I get help with medical costs?
If you are on a course of study lasting over 6 months or your country has a reciprocal health care agreement with the UK (your Doctor will have a list of such countries), you are entitled to free National Health Service (NHS) treatment from the beginning of your stay.
What is Council Tax and will I have to pay it?
It is tax collected by the local authorities to pay for public services such as rubbish collection, the fire, and the police services. Full-time students (including international students), however, are classed as 'exempt' adults and will not be asked to pay this tax on accommodation. Any dependants will also be exempt.
Employment
As an international student you are allowed to do some work while studying in the UK. The stamp or sticker in your passport however places conditions on your right to work during your stay.
Most students who are planning to attend a course for six months or more can expect to receive a restriction on employment. Your passport should read:
"No recourse to public funds work (and any changes) must be authorised."
The above statement allows you to work a maximum of 20 hours a week during term time and full time during the vacation periods.
Disabled Student Funding
Disabled Students' Allowance – DSA
This allowance is to help cover the extra costs that you incur on your income because of your disability or learning difficulty, such as specialised computer equipment, note-takers, or extra tutorial support. There are four allowances for 2004-5, these are:
- Specialist Equipment – up to £4,565 for the whole of your course is available for full and part time undergraduate students.
- Non-medical helper's allowance – for any helper, such as readers, note takers, or sign language interpreters. Up to £11,550 a year is available for full time undergraduates. This is given as a percentage for part time students, i.e. 50% of a full time course – up to £5,640 a year.
- General Disabled Students Allowance – for other disability-related costs, such as tapes or Braille paper, or to top up the first two allowances. Up to £1,525 a year is available for full time undergraduates and up to £1,140 a year for part time students.
- Extra Travel Costs – any additional costs you must pay to attend University because of your disability.
How do I apply?
Your LEA will assess your needs and how much it will cost. Documentary evidence and a 'needs assessment' are required to identify your support needs relating to your course. The assessment must be carried out at an Independent Assessment Centre or the Disability Co-ordinator may be able to arrange to do this at the University.
When should I apply?
It is advisable to start the application process as soon as possible before beginning your course. It is important to check first with the LEA as it can differ from region to region.
Can I claim benefits?
Most full-time students are not entitled to benefits; however, students with disabilities may be able to receive Income Support and/or Housing benefit. You will not get Housing Benefit for living in University Accommodation. To be entitled for both these forms of support you must qualify for a disability premium or if you have been incapable of work for a continuous period of at least 28 weeks. For more information visit: www.skill.org.uk
Mature Students with Children
Can I get funding from my LEA?
There are 4 different grants available to full-time students with dependents to help them meet the costs of Higher Education.
The Childcare Grant
For lone parents, students married to other students and students who have a spouse with a low income or disability who have dependant children under 15 (or 17 if the child has special educational needs.) The grant will now pay 85% of your actual childcare costs. Importantly if you claim other benefits the grants will not be taken as income when calculating your other entitlements.
Additional Help from your LEA
- New for 2003/04 – Parents Learning Allowance
- Full time students with dependant children who receive the childcare Grant or whose spouse's or partner's income is set below a certain amount. A grant of up to £1,300 is available.
- Lone Parents Grant
- Full time students with dependant children who started their course in 2001/2002 or before and who choose not to receive the Childcare Grant or Parents learning Allowance. A grant of up to £1,125 is available this year.
- Adult Dependants Grant
- For full time students with adult dependants a grant of up to £2,280 a year is available.
Can I claim Tax Credits and Benefits?
From April 2003 the Government introduced two new tax credits, these are:
- Child Tax Credit
- Available to support families with children. It is income-related support which is paid directly into the bank account of the person mainly responsible for the acre of children.
- Working Tax Credit
- Paid to people who have a low income, with or without children. There is, however a childcare element to this tax credit. For more information visit: www.inlandrevenue.gov.uk/taxcredits
Benefits
Student parents are regarded as a 'vulnerable group' and therefore may be eligible for income-related benefits to support living costs i.e. Housing benefits. Contact your local Jobcentre Plus for more information.
Access Bursary
This bursary is administrated by the University's financial Support office and is available to meet the costs of students in higher Education with dependants:
- Access Bursary
- This fund is available to new and existing students with children who receive the Childcare grant. An award of approximately £500 can be made.
- Pre 2000/01 – Access Bursary
- Available only to students who started their degree in 2001/01 or earlier and receive the Dependent's Grant or Lone Parent's Grant. An award of up to £1000 can be made.
Hi-Tech Crime
Stealing your pin and squandering £££ on your credit card – the likelihood is low, but reduce the odds by keeping your details and cash safe.
Credit Card Fraud: Tips To Protect Yourself
- Treat your cards like cash – never let them out of your sight (one in five stolen credit cards are taken from cars) and never pass on PINs or passwords, ever.
- Don't leave cards behind the bar. Someone could copy the details.
- Go through your bank statements carefully – if you spot a withdrawal or purchase that isn't your report it to your bank.
- Rip up or shred receipts, mini statements, loan forms and cash point balances so card details can't be stolen.
- When you go off abroad, only take the cards you'll need.
- Have emergency contact numbers to hand to cancel lost or stolen cards.
- Never keep your PIN number with your cash card.
- If any of your cards are stolen, don't mess around. Call to cancel them – don't even wait until you get home.
- Be aware of cyber pranksters – they steal credit card details and data either from you or over the net, and use online.
Four Steps To Cyber Safety
- Use A Secure Computer – It needs to have virus protection and a firewall software package installed. Avoid shopping from Internet cafes or public computers. Don't open emails or attachments ion you don't know where they came from – they could contain a virus. The same goes fro programmes. Log in and out of secure sessions correctly.
- Only Shop AT Secure Web Sites – Always use a single credit card. Check that you are shopping with a reputable online store. If it's a secure connection the beginning of the website address should change from http to https. Also, a small padlock symbol should appear on the bottom of your browser.
- Keep your ID Your Identity – Keep PINs, passwords and personal information safe – always be wary of unsolicited email that claim to come from banks asking you to click on a link and disclose information. Your bank would never ask you to disclose your password in full or PIN.
- Be Up To Date – Keep a record of any transactions you make online – preferably print out so you have proof of purchase.
ATM Security
Be Aware of shoulder surfers – they steal Pin numbers over your shoulder at cash machines for use later with copied cards.
So, when taking money out of cash machines, the rules are these:
- Go in daylight and use machines inside banks if you can.
- Shield the keyboard.
- Never be distracted.
- If someone crowds or watches you, cancel the transaction and move on.
- Put money and card away before leaving.
For more information on safer online shopping and credit card fraud protection, check out www.crimereduction.gov.uk and www.cardwatch.org.uk
Sources of Advice and Information
If you do find yourself in a financial predicament and need to talk to a professional and qualified advisor in confidence please contact The Source – UDSU's Independent Student Advice Service.
- The Source – UDSU's Independent Student Advice Service — 01332 591509
- National Debt line — 0808 808 4000
- Tv Licencing — 0844 8006734
- Consumer Credit Counselling Service — 0800 138 1111
- Citizens Advice Bureau — 01332 383025
- Skill: The National Bureau for Students with Disabilities — 020 7450 0620
- International Student Advice — 020 7107 9922
- EGAS — 02072 4966365
- University Counselling Service/Nurses (24 hrs) — 01332 591317
- University Finance Office — 01332 591022
This information is also available in large print, Braille and audiotape on request.
Disclaimer: This information provides general guidance on Financial issues and University Policy. The information given should not be regarded or relied upon as a complete or authoritative statement of University policy or procedures. The Source will not accept any liability for any claims or inconvenience as a result of the use of information provided.
