Balancing study, work and play is a major part of student life. And while we may smile at tales of students who eat nothing but baked beans, the reality of living on an unpredictable, restricted income is not very funny…
Sticking to a sensible budget helps immensely when you’re a 'struggling student'. But although budgeting is a fact of life, most new students are inexperienced at it, having not lived on their own before attending uni. To give you an idea of your spending habits, jot down everything that you spend for seven days; you’ll be amazed at how quickly those couple of coffees and bus trips add up!
How much?
Decide your budget before the start of uni. Your basic weekly costs could be: food $50, petrol $20, student travel pass $20, mobile phone $25, accommodation and utilities $120. Factor in one-off expenses like car rego, medical bills and text books. Don’t forget to allow yourself some spending money – it helps stop budget blow-outs. The MyState Financial website has a great budget planner under the 'Tools & Tips' section. Many universities also offer a budget planner; so talk to your student services department if you’re unsure how to find one.
Your bank account
Get smart, and you’ll save unnecessary fees and charges. For example, it’s often cheaper to transact through Internet banking than over the counter at a branch. Also, take the time to understand how and when fees are charged to your account; and ask whether you are entitled to a certain number of free transactions. Talk to a MyState Financial Personal Adviser about the best account for you, and how to manage it.
From little things…
… big things grow! Saving and investing are aspects of budgeting, and often the only way to achieve your bigger goals. Try saving small amounts frequently: maybe by directly transferring some of your pay each fortnight to a special savings or investment account (try the MyState Financial Online Savings Account).
Government help:
Most Australian students can access the HECS-HELP scheme and loan program. Other Government benefits that students may be eligible to receive are Youth Allowance (age 16 to 24) or Austudy (25 and over). In addition, Centrelink does pay rent assistance in certain circumstances. Understand what concessions you are eligible for under your Centrelink payments and take full advantage of them (such as discounted travel, medicines and power bills).
Uni loans:
Student loans can be set up through universities, and if you’re experiencing financial difficulty it’s worth talking to someone in your student centre (rather than run up a credit card bill!). There can be conditions attached to these loans so, again, read the fine print.
Dollars and sense: the basics
Keep your PIN secret:
Don’t tell anyone your PIN or password. Also, don’t keep a copy of your PIN or password anywhere. Memorise it, and destroy any copies.
Direct debits:
Before you sign on any dotted line, understand the basics of what you have promised to do, what the company has promised to do, the exceptions or clauses, and what you should do if something goes wrong. Don’t be embarrassed to ask questions and take the documents away, so that you have time to read them. To cancel a direct debit, tell both your institution and the company making the direct debit (a short letter is good – keep a copy). If problems arise, contact your financial institution immediately. Always make sure you have enough money in your account to cover a direct debit (otherwise you might get charged with an overdrawn fee).
Your paperwork:
Don’t recycle it – keep it in a file that’s ordered and accessible. It’s a lifesaver if you have a question or problem about your financial affairs. Also keep notes of important telephone calls you have with your financial institution (record basic info such as the name of the person you spoke to, the date and time, and an outline of what was said).
Your superannuation:
If you’re working, make sure you’re getting the super you’re entitled to. Your employer is required to contribute an amount equal to 9% of your earnings to your super fund, unless you earn less than $450 a month, or you are under 18 and you work less than 30 hours per week. Keep your statements, and always seek advice about rolling over your accounts from your previous employment into your current fund (ask your current fund for help with this).
Finally…
Once in a while, review your budget – perhaps in the mid-semester breaks. You may find that there are some expenses you can cut without a problem, leaving you more to play with in other areas. Not only will a budget make study far less financially stressful, it’ll set you up with skills that’ll last a lifetime.