Channel 4 Teachers
Careers - Work It
Money Talk
Interactive Activity

When teenagers were asked what they needed to learn more about in schools, money management came top of the list. Even ahead of sex education! This simulation game helps students manage their personal finances.

Aims:
During this activity students will get to give themselves a trial run at their first year of university. After completing the activity students should be able to:

  1. Moving away from home for the first time can be a daunting experience. Give some thought to what makes where you live feel like 'home'. Make a list of all the things you like about where you live. Divide your list into things you could live without (wants) and things you must have (essentials).


  2. A big part of managing your money is knowing what you spend money on. Make a list of all the things you spent money on yesterday. Now think about how much money you spent in the last week. Did you always buy things that were essential? Were you able to account for all of the money you had spent? If you had to cut costs, what would you stop spending money on?


  3. John is going to university in London and wants to know how much money he will need for his first year. Find a partner and have a brainstorming session to try and identify all of his potential costs. Don't forget expenditures like tuition fees, rent, travel costs, food, books, telephone bills and entertainment. How much will John need to budget for his first year?
Fees Loans
Accomodation Transport
Sport Entertainment
Phone bill Food
Study Utilities


back to top Fees

Having to dish out over a grand to study almost makes you want to go out and get a job. And it could get worse. If the government introduces top-up fees in 2006, you'll quite possibly have to shell out three times as much.

This makes tuition fees a hefty chunk out of your yearly uni budget.

Right now, you're expected to pay £1,125 towards your tuition. Each university, whether it's London Metropolitan or Cambridge, charges different tuition fees. Despite this difference, you pay one set price.

This price can be reduced, however. If your parents' total residual income is less than £31,230 you only pay a portion of your fees. If their income is less than £20,970 a year you don't have to pay fees at all. About 60 per cent of students don't pay the full £1,125.

Top-up fees, which you would repay after graduation, are part of a government plan to tackle education budget shortfalls and find the money to ensure that more students go to university.


back to top Loans

A student loan may be able to help make things a little easier on the purse.

Just keep in mind that a loan is exactly that, a loan. While it may seem like free money, you do have to repay the money you're loaned. So, make use of your entitlement, but try not to go overboard! Most students graduating from university face a £10,000 debt.

To apply for a loan, contact your Local Education Authority (LEA). Depending on where you live applying for a loan is either an easy one-step process or it's a tedious (but relatively straightforward) three-step process:


Fill out an HE1
First, you apply to your Local Education Authority (LEA). You fill out an eligibility application form (HE1) and the LEA determines if you are eligible for support. If you are, the LEA will send you an eligibility notice.

Fill out an HE2
If you're eligible, you'll be able to get 75 per cent of the maximum loan. To get the remaining 25 per cent you need to fill out a financial assessment form (HE2). This form looks at your parental income.

Fill out a Loan Request Form
Once the LEA has sorted out your loan entitlement, they'll send you a Loan Request Form. You'll indicate how much of your entitlement you wish to use and send it to the Student Loans Company (SLC). The nice people at the SLC will send a cheque directly to your uni.

Make sure you apply for your loan as soon as possible. If you apply late, you could be waiting in desperation at the start of the term - although there are exceptions in emergencies.


back to top Accommodation

Should you save your dosh by hanging out at home with mum and dad or go wild and free with a place of your own?

Halls of Residence (fully-catered)
Just because you live away from home doesn't mean you need to do everything for yourself. You have enough on your plate just getting used to life at uni, after all. If you live in a residence that offers full catering, somebody else cooks your meals. And just in case you're thinking of whinging when they don't get the welsh rarebit just right, bite your tongue - they clean up after you too.

Pros: Cons:

Halls of residence (self-catered)
Vegan? Kosher? Halal? Picky? If you want complete control over what you eat, you might want to consider self-catering halls. You'll share cooking facilities with other students, but of course the downside is that you're stuck if they happen to like really smelly food.

Pros: Cons:

Rented house or flat
Things like toilet paper don't magically appear. You may be free of your parents but there's a lot to think about when you live all on your lonesome. Damage deposits, furniture, cleaning supplies. Did we mention the TV licence? Not only can all the responsibility do your head in, but you can end up skint pretty quickly if you don't watch your costs.

Pros: Cons:

Live with parents
Mum and dad love you. They'll cook your meals, wash your clothes and pay the bills. They'll give you hugs when you're feeling down. OK, so all your mates might tease you about still living at home, but you've got the time to study for exams and the money to have a good time celebrating afterwards.

Pros: Cons:

back to top Transport

Now that you're officially on your own, you've got to figure out the best way to get around.



Cars
Why walk, when you've got four wheels to take you where you want to go? Driving is all about convenience. There are some places perfectly suited for driving, so if you've been lucky and moved somewhere where there's little traffic congestion and good parking, there's great temptation to get behind the wheel. What's more, if you've ended up somewhere where public transport is non-existent or you have to traverse long stretches of motorway to get from home to college, then having a car is an essential piece of your uni kit. Of course, the downside of driving is that it can get expensive and you have to suffer the guilt of knowing you're contributing to the greenhouse effect.

If you and your mates take turns driving and give each other lifts to and from uni, you can reduce costs and cut the pollution.

Pros: Cons:

Public transport
Think you're too good to slum it by taking public transport?

Perhaps the thought of spending hundreds of pounds on car insurance will change your mind.

What about the serious money you'll throw away each week when that petrol-guzzling hunk of metal begs for more juice? Or how about the torture you'll experience when you realise you've wasted an entire day in city traffic? Where are you going to park that beast anyway?

You can save a pretty penny by buying weekly or monthly travel cards, and even more if you can afford to pay for a whole year in advance. Keep in mind too that you can read or study on the bus or train.

Pros: Cons:

Bike it
Better yet, why not rely on pedal power? Bike insurance will cost you less than a hundred quid a year - and you'll stay fit too.

Pros: Cons:

National travel
Sooner or later you're going to have to go the distance. Will you drive or go by coach or rail? Travelling by coach is pretty cheap, but it adds time to your journey. Keep in mind too that as a student you're entitled to some pretty sweet discounts. For instance, if you get a Young Persons Railcard you get a third off your travel. And there are saver options for many journeys too if you book in advance.

Of course, if you drive you're guaranteed a way to get around once you get to your final destination.

Pros: Cons:

back to top Entertainment
Not to distress you, but you can tell a lot about a person by how they keep themselves amused.

If footie on the TV is your game, you're in luck. You'll save considerable cash if you opt to stay home and entertain yourself (unless you're paying for pay-per-view matches). Snuggle up on the sofa with your favourite DVD and all you'll pay is the charge for your rental. If you're hopelessly addicted to the big screen, proceed with caution! A film-a-night habit can get costly. Take along your NUS or ISIC card for discounts, and try to visit cinemas outside the city centre where entry prices are usually cheaper. You could also find out about monthly movie passes.

Hang around at student bars and you'll get deals galore, plus you'll meet down to earth pals who like deals too. Head out to a trendy bar and things will get more expensive, although if you stick to the chain bars you might find they offer student discounts. A night of clubbing will set you back a pretty penny, not just because of the entrance charge but because drinks cost £12 each. But who's to stop you if you just can't get enough of the Ministry of Sound?

If theatre is your bag, there may be danger ahead! Your finances can get out of control pretty quickly when you're dishing out £30 to catch a glimpse of your favourite thespian. But you can be smart about this too. There's often discounts for students and if you hunt about you can wangle some pretty good deals, like cheapo standing room tickets.


back to top Sport
Face it, you're not only at uni to study. You're also there to look good.

You need to take care of your body as well as your mind. Luckily there are options to satisfy even the strangest workout desires. You could go for a jog around the park for the price of a pair of trainers. Or if you need to pump it up or want to take a class you could get the nuts and bolts student union package. If you're a real fitness fiend you could join a private gym. Often there are deals if you exercise during off-peak times. If your gym asks that you sign a contract, make sure you understand what you're getting into. Some gyms require a few months' notice if you want to cancel, others require you to stay on for a year.


back to top Food
Is cuisine an art or an aggravation? You could survive on baked beans on toast, but who says that just because you're a student you have to eat out of a tin? Why not dial it up a notch and splurge on a few eggs and have a scramble? There are plenty of ways you can whip up a decent meal. The trick to eating well on a budget is judicious use of spices and herbs and finding a few good recipes you can rely on. Ask your mates for their faves or look up recipes on the internet. Gourmet cooking can be pricey so if you've picked up the latest Jamie Oliver book, make sure you've got an idea of what the ingredients cost before you invite everyone round for a pukka meal.

Eating out is sometimes an option, but even fast food restaurants can really eat into the budget, and, while fast food might be fast, it isn't very healthy and it's easy to pile on the pounds if you eat out all the time.


back to top Phone bill
There's definitely an art to chatting someone up, just be smart when you use your phone to do it. Having a landline can help keep your phone costs down, especially if you've been savvy and shopped around for the best deal possible. Be warned: sharing a phone with flatmates can be a right nightmare. Who wants to divvy up the phone bill each month?

Mobile phones are a good option and if you get a 'pay as you go' plan you can keep yourself on track by limiting how much you spend each month. If you're picking up a new phone plan, make sure you read between the lines. That small print has a lot of really important information. Will you be tied into your contract for one year or two? Are you paying a different price for off-peak or peak calls? What does it cost to send a text?


back to top Study
Oh? You didn't know that you had to buy books as well as pay your tuition fees? All courses incur costs and it's your responsibility as a student to fork out the money for them. The idea of getting all new books is compelling, but when one textbook can cost £70 and you need 15 different books, buying them second-hand starts to look like a good option. You can try to use the library facilities - although course books can disappear fast. Look into student discounts at shops on or off campus. Buying second-hand online is also an option.

Also, it's not just books you've got to purchase. If you're on an art or design course, you'll have to pick up paints, pencils and the like. If you're a scientist you'll have to pay lab fees and buy a lab coat. It's good to get an idea of what materials you'll need in the summer before classes start, so you'll have the time to shop around, or ask relatives to buy them for you as 'starting uni' gifts!


back to top Utilities
Turn off those lights! One of the joys of moving out on your own is that you get to find out first-hand how expensive it really is to power Thomas Edison's amazing little invention, the light bulb.

Gas, water, electricity, your TV licence. All of these things cost you money. And not only that - if you're sharing a flat you've got to sort out how you're going to share the bills. If you don't pay the bills you won't be able to eat - unless of course you like cold tinned meat. There are things you can do to keep control of your costs. In winter, instead of jacking up the heat put a jumper on. Turn off the heating when you leave in the morning or buy timers to turn the heat down during the day and when you go to bed at night. Hunt around for the best utility deals possible by comparing tariffs online. Some energy providers offer you money-saving packages where you can pay for gas and electricity together.