Many parents will be sending their children off to university for the first time this September and October and now is the time to start making sure that they are well organised and savvy when it comes to finances and making the most of their money.
It is key to make a budget with your child and instill in them the importance of sticking to it. They need to know where there money is coming from and going too.
Whether your child is moving into halls of residence or sharing a house it is important that you make sure that they are covered. If they are staying in halls of residence see if your home insurance will cover them under a clause called ‘contents temporarily removed from the home’. At no extra cost, it’ll usually offer cover of up to £5,000.
But you need to make sure that all of their possessions are covered once you add in the cost of a phone, tablet, laptop and other electronics it soon adds up.
Many banks try to temp students to sign up with them by offering freebie and gifts such as free downloads, but try and encourage your children to look past these incentives and focus on the real costs. Are they going to need a overdraft? Make sure they get the biggest guaranteed 0% overdraft that lasts as long as possible. The only time this doesn't apply is if the freebie on offer is so valuable to you it outweighs this.
You do not really need a TV anymore and if you are going to watch your programs via catch up then a TV licence becomes unnecessary. But you must remember not to watch any programs live.
Spend to Save
£12 for National Union Of Students Extra card will ensure that you make savings over the year. 10% of cinema tickets and much, much more. The same applies to rail travel a 16-25 railcard can cut a third off ticket costs. If you have An AUS Extra card then you are also eligible for another 11% off.
As a student your child is going to be a heavy internet and mobile phone user so make sure they get the most appropriate deal for them before going off rather than being hit with extortionate monthly bills.