It’s been an amazing National Student Money Week and what fun we’ve had; with the Pound Pizza compo, Guess the Basket compo and Challenge Naomi naming but a few of the exciting activities of the week! But there’s more! We want to support you in every way possible to be super money-savvy. As the adage goes, “failing to plan is planning to fail".
The good news is that you don’t need a Master’s in financial planning to increase your chances of making it through your studies. All you need are some simple common-sense principles. It all comes down to making a plan – or rather, a MAP! That is..
1. Map: Map your financial coordinates
2. Afford: Make informed decisions based on what you can afford and stick to the plan.
3. Prepare: Prepare for the unexpected.
1. Map
It seems so obvious, but in order to know how to get to where you want to be, you need to know where you are! As a start then, get a sense for your financial coordinates by drafting a basic list of your current and future financial spending.
For example, how much do you already have to spend on your studies from savings, money from your parents, etc.? How much can you get from other funding sources, for example from grants, loans, scholarships? Basically, what is your total income figure? If it helps, you can bring these down to a common denominator by dividing them up into monthly or week amounts.
2. Afford
Aside from income, you now need to look at which expenses you can afford and which to prioritise. Consider first your more regular priority expenses, such as travel and food, insurance, utility bills and of course social life etc. Then consider your one-off expenses such as travel back home out of term time, deposits for new accommodation, electrical equipment, holidays etc., MOT or car repairs, visa expenses etc. Again, to make it easier you can split or multiply these figures into either weekly or monthly amounts in order to help you understand your figures easier.
3. Prepare
It is said that the one thing in life that is certain is change, and this is very true of our current economic, social and political climate. Therefore preparing for the unexpected is by far the most important tip I can give you.
You could meet any number of financial storms ahead; from unforeseen course fees to overseas travel, emergency accommodation costs to healthcare expenses. Your initial plans could be affected by an unexpected drop in income, such as a drop in wages or in money from home. These things can and often do happen and they can have devastating consequences – but they don’t have to. If you think ahead you can be empowered and resilient to cope with the changes ahead.
As a back-up, then, I’d suggest having between two and three months’ savings in a separate bank account – call this your safety net. This will give you time to source alternative funds during any major crisis and will also give you a degree of financial flexibility and resilience to cope with smaller unanticipated outlays or drops in cash flow. This is your own personal lifeline – but it only works as long as you don’t spend it!
Remember...
To sum up, remember: Map your current financial state and consider your range of options; make informed decisions based on what you can Afford and stick to the plan; and finally, Prepare for the unexpected. Follow these simple steps and you will be right on course to weather any storm ahead – anticipated or otherwise.
Finally, you are not alone.. help is at hand!
There are numerous online tools to help you work these issues out and balance your finances; one is the UCAS Student Calculator - give it a try. Save the student also have a webpage with a host of budgeting tools and apps to help you keep and stay on track. There also a few bank accounts that can help you spilt money off and keep separate ‘wallets’ for specific purposes, such as bills, rent and food.
NSMW 2016 research: Students, Money & Mental health
Last year we teamed up with NASMA to do some research into what students themselves thought would be their top tips for staying on top of mental health and money from NSMW 2016. Aber students were the second largest contributors from Wales-based universities so why not have a peek to see what your peers thought below:
· NSMW16 Infographics (English)
· NSMW16 Infographics (Welsh)
Aber SU Advice Services
Aber SU offers an award winning advice service. It is free at the point of need, independent and impartial and is available to all students of Aberystwyth University.
Need help with budgeting or working out your finances?.. or maybe you are a little tight for cash?.. no worries, get in touch and we’ll gladly support you to overcome your hurdles and get things sorted!
Please see further details about our service as well as contact points here, we’d love to hear from you.
Author: Eri Mountbatten
(Aber SU, Student Adviser)