If your child is about to head off to university, there’s probably a lot of things you need to organise before they leave – from computer equipment to furniture and everything in between.
Of course, one of the most important things to sort out is their finances – and how they are going to manage their money during their studies. Here, we look at several ways you can get your child set up financially for university, so they can make the most of their time there!
Organise their student finance
Before they set off for university, it’s important to sort out how they are going to finance their studies. One of the most popular ways to do this is by applying for student finance – which you can do together online.
Your kid will need to check if they’re eligible for student finance, and if so, how much they could get. You may need to provide details of your household income so that student finance can work out what money they will be entitled to.
They’ll then need to set up an online account and complete an application. Do this in advance to make sure they have the funding in time for their course start date.
Create a realistic budget
When it comes to managing money as a student, one of the most important things to do is create a realistic budget. Firstly, figure out what their total income will be once they have their student loan, any grants, any money from yourself, and income from a part-time job.
Once you know their total income, take off any set outgoings like their rent, tuition fees, utility bills, travel costs, books, or course equipment.
This will leave you with the amount of money they have left to spend on other things like food shopping, toiletries, evenings out, and so on. Working out this budget will help them to manage their money day to day and avoid overspending.
Manage any debt appropriately
When getting your kid set up for university, it’s worth shopping around for the best student bank accounts that allow them to borrow when needed. Try to get an account set up with a decent overdraft amount and a 0% fee – so they don’t get charged if they use it.
While it’s wise to advise them to avoid dipping into their overdraft, it may be necessary from time to time. If there are other debts you need to manage, look into the most effective way to organise these finances.
For example, you could look at using bad credit debt consolidation loans, paying more than the monthly repayment amount, or exploring other payment plans.
By getting their income set up in advance, creating a realistic budget for their expenses, and managing any debt appropriately, you can help organise your kid’s finances before they head off to university. The key is to be realistic about costs and spending – to avoid any expensive surprises along the way!