3 financial lessons for college students

So your off to college (or going back for another year). The cars packed, the dorm room essentials bought and now its time to think about some serious stuff, MONEY. First things first as a student make sure to open up a student bank account and reap the benefits of that. 

Though college can be a great opportunity for growth and development it can also lead your down a financial slippery slope. The average graduate leaves with about $30,000 (in the US) in loans. This number are huge and something to be avoided, though more often than not buy the time the reality of the situation has hit home a lot of debt has already been accumulated. 

Today we'll share our top 3 financial lessons for college students to help them avoid these pitfalls.

1. Only borrow what you need. You may be entitled to more loans but that doesn't mean you should take them out. Whilst organising your student finance do an annual budget and see how much you anticipate spending. 
Look at the average cost of living in the city where your college is and combine this with the cost of tuition minus you savings to figure out how much to borrow. If the amount offered to you by loans is greater then consider borrowing less. 
Avoid borrowing on credit card at all costs (and your bank will try their upmost to sell you a student credit card) nor should you use student pay-day loans. If you find that you are borrowing more than you need contact you lender to amend the agreement to better reflect your financial needs. 

2. Overdraft ≠ free money. When banks sell you a student account their biggest selling point is the overdraft without fees or interest. The first thought of many is FREE MONEY!!. No such thing exists and there is a price to pay for it. Students become accustomed to this being part of their budget and treat it like their own money. But its not and you'll have to pay it back. 
Unless your super sensible with your money I would never set up an overdraft. Though you can take the money out and invest it (and earn interest which would be free money) with the super low interest rates on low risk financial products at the moment it is barely worth it. So basically give the overdraft a miss and avoid creating one of the worse personal finance habits. 

3. Look for alternative sources of income (excluding loans). Avoid at all cost student pay-day loan companies and credit cards as their interest rates are through the roof. Instead look for alternatives that bring in income without incurring debt. 
Scholarships and Bursaries are a great way to supplement your income. Though not as common in the UK they are becoming increasingly so especially if your from a low household income. They can be a little tricky to find out about but researching is well worth it if you get the scholarship as you don't have to pay the money back.  
Working is invaluable whether or not its during term time or the vacation. It boosts your CV and your bank balance. Plus keep an eye out on campus for other ways to earn. Often clinical trials will be run, or surveys needs completing, these simple tasks can pay quite well. Check out this post on boosting your income as a student. 

5 items to never buy new

Sometimes its just not worth buying something new. Especially if its value is going to depreciate rapidly. Buying goods secondhand can be a great option and a way to pick up some quality bargains. There are plenty of places to pick up secondhand goods including; yard sales, car boot sales, GumTree, FreeCycle, CraigsList and Local Facebook groups. Today I'll share our top 5 items that we buy secondhand. 

Crockery. For day to day use you don't need a royal worcester full dinner service. But even the supermarket basic sets can cost upward of £30. Car boot sales and charity shops are a great place to pick up crockery especially if you don't mind having it all mixed and matched (because lets be honest sometimes this looks cuter). We picked up our crockery for free from some students (our college has a free cycle program) and saved about £40. 

Furniture. C and I just got a flat and so furnishing is an expense thats hit us recently. We have picked up several pieces of furniture second hand from gumtree including our lovely daybed (which doubles as a couch) for only £75 (retail is £500). There is so much good quality second-hand furniture out there that you'll never have to feel like your settling for second best. Our advice is to pick furniture that is 12-18 months old as this is where you'll get the biggest savings relative to the quality of the furniture. 

Designer clothes. I will admit I love my clothing (I'm a big Joules and Boden fan) but I cannot bring myself to pay so much money for their clothes. If I'm going to treat myself to 'expensive' clothing (or even mid range clothing) I will usually buy it from eBay or a Facebook group. Look for gently used clothing or like new to get the best quality. You'll have to come to terms with the fact that it won't be this seasons clothes so it is best to invest in brands and items that are classic and timeless. 

Textbooks. Unless I get them for free (which I've managed to do for all my final year books) I would buy books either from upperclassmen at the annual book sale or on ebay. Even better is the fact I can sell the books on at the end of the year and usually make back the money that I bought them for. Look for books without highlighting/markings (and don't mark them either) as they are easier to re-sell and depreciate less.

Tool kits. Simple tools can are a necessity for every house hold but they don't need to be beautiful (or expensive). Pick up a whole kit for a few pounds at a car boot /yard sale or try picking them up for free on free cycle. Tools are something that are easy to find as people are always trying to get rid of them. At the end of the day your tool kit is not something that you bring out to display and show to visitors. Therefore, it doesn't matter how ugly and mismatched it is so long it can perform the job. 

What don't you buy new?

How to set a wedding budget

So your engaged!! Congratulations. Now the serious wedding decisions. The first big decision you will encounter is what your budget is going to be. The average cost varies widely and depends on a number factors so it's important you think carefully when setting a budget. The average UK wedding costs approximately £15000 and has 60-70 guests. A wedding doesn't have to cost this much (or if you want it can be more). However, always remember a wedding is not worth going into debt for. 

Firstly figure out who is contributing to the wedding. Is it just you and your spouse or are parents/grandparents helping out as well. Determine how much they are contributing or if they are helping with a certain element (I.e flowers). Consider whether you as a couple are going to add to family contributions or not. Having this conversation when you first get engaged is important (even though it can be a little awkward). C and I didn't have a conversation with his parents initially (on the assumption they would bring up the topic) but they never did and so it was about 6 months into our engagement we finally spoke to them as we realised they weren't going to start the conversation.  

The next big decision is you need to figure out a provisional guest list to give you an idea of numbers as this is the factor that has the best impact on your expenses.  When you are having a reception you generally pay per person so consider how many people you want at your wedding breakfast and if you want evening guests as well. As a rough guide most people spend about 50% of their budget on venues and food. We spent just under 60% of our budget on this category. It may be a good idea to get some provisional quotes from venues to help give you a idea of how much it will cost to host. 

By combining these factors you and your fiancé should be able to come up with a budget that you are able to stick to and accurately reflects the cost of your wedding. 

How did you set your wedding budget? 

How to build up savings quickly

So you've set yourself a savings goal (great job). Be it your emergency fund or a down payment on a house we all have something to save for. But sometimes it feels difficult to work towards that goal. Here are some savings methods that should make the process a little easier (and a bit more fun).

Automatic savings. Pay yourself when you are paying your bills by setting up a standing order to one of your savings account. This way you won't even think about saving because it just happens. You can set up a standing order from your checking account into your savings account so a set amount is saved automatically each month this means that saving becomes part of your basic monthly budget. Often savings accounts need only £1 to be opened so anyone can start this process. Or you can use a service like Digit where by the amount saved is based on what you can afford after analysis of your spending habits. The disadvantage of digit is that the cost is essentially your interest. So once interest rates begin to rise again it may be worth looking into alternative options. 

52 week challenge is where you save every week the amount that the week is into the year. The 1st week you save £1, the 23rd week of the year you would save £23 and so on. What's good about this method is that it increases your savings incrementally and at the end of the year you'll have £1378 !! By increasing your savings incrementally it doesn't feel like such a large amount to have to save making the savings process a lot less painful. 

Savings jar (put every 1 dollar bill, £5 note etc. away)- this method involves putting every one of a certain currency denomination away in a savings jar for a set proof of time. Saving coins is also a great option and you can cash them in at the bank, post office or a coin star. However, this method assumes that you use cash and would not be appropriate for those who mostly use their debit card. 

Spending ban for a month/week etc- Hold off from luxuries spending for a month (or however long you want to challenge yourself). This means you still buy food, transport, necessary clothes and pay your bills. But everything else that isn't absolutely essential is put on hold for that period of time and what you would have spent on those categories is put into savings. A spending ban is quite a humbling experience and makes you realise what is really essential to your life and how much superfluous things you have. 

What fun saving methods do you use?

Back to School on a Budget

Back to School doesn't have to break the bank but sometimes it feels like it will. From uniforms, sports kits to books and stationery, the list of things to get can feel overwhelming.
But don't fret, back to school doesn't have to cost the earth. There are a number of ways you can save when preparing for the new academic year. Today we are sharing 3 simple tips to help ease the cost of returning to school.

1. Re-Use last years. 
A culture has developed of needing a whole set of brand new school supplies each year. Do you really need to get a new pencil case, binders and bags every year? Look at what you have from last year much of it should still be in reasonable condition (provided you/your children are respectful with their property).
This becomes more so the case as children get older as they damage things less. When purchasing try to invest in good quality items so that they can last a number of years.  This can especially be the case with items such as backpacks which can last many years. 

2. Buy used. 
Over in England most children wear school uniform, and often it may be specialised for your school with their logo making it expensive. See if your school has a second-hand sale for these logo items as there are always parents with children who have out grown them looking to sell their's on. For the generic items (i.e. those without the school logo) look in charity shops and thrift stores can be a great place to start. Don't be afraid to talk to your parent friends who also have children at the same school, setting a hand-me-down system can be a great way to get your hands on second hand uniform. 

For those in schools without a uniform the burden is less, kids don't need a while new wardrobe just to go to school. Remember they have managed to wear normal clothes all of summer. Once again look for affordable second hand clothing as children will grow out of them so quickly.

3. Wait for the sales. As a college student my term dates are different to schools and so by the time I start term all the back to school items are on sale. If you wait a couple of weeks after term has started stores have great sales on school supplies. This is because they know most people feel compelled to buy everything super early. 
These are also a great opportunity to stock up for next academic year, if buying early is your thing, is you see some super deals. Use this chance to buy items a cut prices yet they are the quality of buying new. We also love using Amazon outlet for reduced priced stationary supplies as you can pick up some super bargains of brand new items. 

4. Don't be afraid to compare. 
The bookshop on campus or the school uniform supplier is never the cheapest option when it comes to buying supplies. Don't be afraid to shop around to try and find the cheapest deal, as it may not be the store you expect to be the cheapest. 
Talk to other parents or upperclassmen to find out where is best to buy and don't be afraid to tap into their experience and expertise, it will pay off in the long run. 

How do you save when its back to school?

This post contains affiliate links.