Budgeting, financial management and debt
Many students face financial difficulties while they are at university so careful budgeting is essential to avoid running out of money and getting into debt. We would advise you to plan ahead to help make ends meet.
First you need to remember that your student funding is intended to cover the short vacations, (Christmas and Easter) as well as term time and that normally, dependant on your personal circumstances, you will not be eligible to claim welfare benefits if you are studying full time.
You will have to think about what you need to spend your money on, and make sure that the essentials are paid for first. Your priorities should be:
- rent
- gas, electricity and water bills
- food
- travel
- course costs such as books
The university has produced guidelines for the average costs students need to budget for - this should help you plan your spending. The best time to do this is at the beginning of each term when you have received your student loan and any other funding you receive.
You can also use the Budget Calculator to help you work out a personal budget.
Making sure that you open a student bank account may help, as these normally offer an interest-free overdraft facility. They also offer perks such as railcards. As with any bank account it's worth shopping around to find out which bank is offering the best deal for you.
Find out more about the various bank accounts on offer:
moneysupermarket.com
AWD money extra
British Bankers' Association
Do not be tempted to open more than one bank account as it is easy to run up large overdrafts which you cannot later repay. Unless you are confident that you can repay a credit card in full each month, don't get one. The interest soon mounts up if you do not pay off the full balance on your account. The same applies to store cards, especially as their interest rates are very high, typically 29% per annum.
Access to Learning Fund
It is very likely that your student support will not be enough to cover your essential living costs, so you may need to consider income from other sources such as part time work and the Access to Learning Fund. You can download an application form and get more informationTo make an application you will need an appointment with a Student Adviser, who will go through the completed form with you and submit your application to the Student Financial Aid Office. You must also provide evidence to support your application.The sooner you apply the better
Debt
Dealing with debt can be very worrying and stressful, but help is at hand. If your debts are unmanageable or could become so, please contact us for help as soon as possible. We offer a free, confidential money advice service. We will not make any judgements on how your problems have arisen. We can help you by going through your finances with you to look for ways of maximising your income and reducing your expenditure. We can also help you work out what you can afford to pay and, if necessary, help you negotiate affordable repayments with your creditors.
You can contact us by coming into the Advice Centre in person or:
email: advice@kent.ac.uk
Tel: 01227 824824
Fax: 01227 824247
Other sources of help
NationalDebtline
Citizens Advice Bureau
Consumer Credit Counselling Service
Payplan
Help with gas/electricity/water bills