Yesterday (August 15th) saw pupils up and down the country receive their A-level results and many young adults will be preparing to head into higher e…
Yesterday (August 15th) saw pupils up and down the country receive their A-level results and many young adults will be preparing to head into higher education later this year.
However, university life can be expensive and it is important for students to be savvy with their finances to avoid getting into too much debt.
The Personal Finance Education Group (pfeg) has now called on parents to use what might be their last opportunity to talk to their children about how to manage their money.
According to the charity, parents have a "key role to play" in helping their children learn how to manage their money at university.
Chief executive of pfeg Tracey Bleakley said: "For most new students celebrating their A-level results this week, starting university will be the first time they have had to manage their own personal finances. It's crucial that they know how to make that first student loan instalment last the entire term, and manage their money well throughout their course."
The biggest tip pfeg gives is for students to budget their loan payments effectively as it has become all too easy for people to blow the primary instalment in the first few weeks of term. Individuals need to prioritise their spending so things like accommodation, food and books can be paid for before anything else.
However, one of the most helpful tips is to avoid being trapped by problem debts. For example, people may dip into their overdraft or use credit cards should they find themselves short on funds. If this is not planned and managed correctly it can quickly spiral out of control and leave students in even more debt.
Students should also shop around to get the best deals and can take advantage of discounts at retailers using university cards and the like. It is well worth looking into this as vast amounts of money can be saved by using this method.
It's important for people to be smart with their money when they go to university and if they get into difficulty they should always seek advice.
By Joe White