By Alison Steed
NEARLY three quarters of students are set to work to fund their studies this academic year, up from two thirds who worked through college last year.
One in six students are concerned that their parents may not be able to continue funding their studies because of the economic climate, according to the research from Halifax.
While most students will take a job during the holidays to help make ends meet, nearly half of all students are now working in term-time too as they struggle to fund their studies.
As students go through towards the end of their courses, they are more likely to work, with four in five taking a holiday job to pay for their education.
Mike Regnier, current account director for the Halifax, said: "It's more important than ever that students make every penny count. This includes sensible budgeting and keeping the cost of debt to a minimum. Selecting a current account with a generous interest free overdraft is one way of achieving this."
While it is important not to be swayed into taking particular accounts by the freebies on offer, there are many other ways you can save money at university or college by being savvy about your finances.
With the average student debt now standing at an eye-watering £23,000, it is important to shop around for the best deals on everything from insurance to broadband deals.
Having a car at university may seem like a good idea, but the cost could be prohibitive, according to data from Moneysupermarket.com.
Steve Sweeney, head of motor insurance at moneysupermarket.com, said: “Moving a vehicle from a ‘safer' suburban home with a driveway to ‘lively' student-based accommodation, with on-street parking, could result in an increase of £1,690 a year to your motor premium.
“Such a significant increase in price means it is vital to consider whether a car really is needed while away at university. Students who do decide to follow this route must ensure they have contacted their provider to amend the policy details to reflect their change in living situation. It is crucial to all motorists but students getting behind the wheel should shop around for the best motor insurance deals available on the market, in order to guarantee their money stretches as far as possible."
Parents may be tempted to save money by being listed as a ‘named driver’ on their parents’ insurance policy, are actually breaking the law if they are in fact the main driver of the car. This illegal money-saving method, known as ‘fronting’, has been considered by one in five students, but would soon find the insurance was worthless if they tried to claim.
Mr Sweeney said: “Students considering this route are playing a very risky game. If an insurer finds out you are not the main driver and you happen to have an accident near the student halls of residence, your insurance and any potential pay out will be invalid. It could prove to be a false economy."
However, parents can legitimately help when it comes to insuring their child’s home contents in their student digs, by adding the cover to their own home insurance policy, which could save an average of £63 over taking out standalone cover for their valuables. Aviva, for example, will cover you for up to £5,000 of goods in this basis for free.
Julie Owens, head of home insurance at moneysupermarket.com said: "There's no doubt the student lifestyle often runs on a tight budget, but as students are three times more likely to be a victim of theft than any other age group5, it is essential for them to have adequate insurance in place to protect their belongings. The cost of personal items such as laptops, academic books, and other electrical items can easily come into their thousands, so foregoing contents cover could be a risky option.
"Adding a student onto a parent's home contents policy is an obvious way of keeping the costs down, however parents should be aware any claims made will directly impact on their own claims history. It is also worth noting standalone contents policies are often better tailored to suit students' needs - covering much more thoroughly for expensive items such as laptops and academic books."
The internet is key for students looking to do research for their courses, and even though using mobile broadband connections rather than a fixed wi-fi may not be your first thought, it can work out cheaper, according to Broadbandchoices.com.
Michael Phillips, product director, Broadbandchoices.co.uk, said: “Whether you are a first year student or heading back to do your final year, it is worth considering taking a mobile broadband service. Mobile deals have really come down in price over the past year and often come with some pretty good freebies attached.
"A mobile connection gives you the freedom to get online wherever you need to - in the hall of residence, at the library or in the local coffee shop. It also removes the thorny issue of splitting yet another utility bill with your house mates."
"Furthermore, going mobile means you can ditch the additional cost of line rental, a move which could save you around £130 per year."
Top tips for choosing a mobile broadband package:
- Try a monthly option - If you are worried about signing up to a long term deal, try a one month contract with a provider like Orange, 3 or O2. This way, you can try out the service and ensure you are happy before signing up for the longer term.
- Avoid pay as you go - Whilst it offers the flexibility of no contract, pay as you go is not always the best option for students as you are rarely able to carry over unused data allowances from one month to the next.
- Check the ‘freebies' - Whilst free laptop deals and the like may seem compelling, you should always check the cost of the broadband package against the cost of an equivalent service and laptop purchased separately. This will ensure you really are getting a good deal. Otherwise, you may find that your ‘freebie' wasn't really free after all.
- Download with caution - Keep an eye on your usage and where you are connecting from before accessing your mobile broadband. Usage charges from abroad and penalty charges for exceeding your download limit can be astronomical with some services.
- Habitual heavy downloader? - If you spend a lot of time downloading TV shows and music, you may want to consider sharing a fixed line service with a housemate - for example, Be Broadband offers a 24Mb speed on a three month rolling contract.
Source: Broadbandchoices.com
