Leaving your course early
If you decide not to finish your studies, you’ll need to tell your bank. They’ll typically turn your account into a normal current account, which usually means you’ll be charged overdraft interest.
If you’re unable to repay the amount you owe, ask your bank for help. They might agree an affordable repayment plan or waive interest for a set period.
Now you’ve got money, how do you keep hold of it? (otherwise known as budgeting.)
It’s important to know how to manage your money, otherwise it won’t last long. When you first get paid (either pocket money, wages, a grant award for studying or a benefit) it can seem like a lot of money. However, it does need to last a long time. It’s a good idea to work out a budget based on the money you have coming in and out, and check it regularly.
Firstly: Add up all of the money you have coming in (your total income)
- income from a job
- bursaries, scholarships, awards or grants
- money from parents or family
- any savings or investments.
Once you know your total income, calculate your expenses (what you need to pay for):
- food and drink
- any bills – gas, electricity, water, phone, wifi, TV licence, music or entertainment subscriptions, gym membership etc
- accommodation fees, such as rent and insurance for valuables
- travel costs, including fuel, vehicle maintenance and insurance if you drive.
Any money left is known as savings (money to spend in the future.)
Make sure that your income is either more than or equal to your outgoing expenses, on a weekly or monthly basis. One simple method is the 50/40/10 rule:
- Spend 50% on essentials (like travel or lunch)
- Use 40% for fun and personal spending
- Save 10% (or more if you can).
If your expenses are more than your income it means that you will be in debt. At this point you’ll need to make the decision about what you are not going to pay for (eg can you find a cheaper music subscription or walk instead of getting a bus.)
There are a range of cost of living calculators available that will help you budget. Try Student cost of living calculator.