Student loans are amazing things, they give you financial security but can be abused easily if you are not careful. Most student bank accounts offer interest-free overdrafts, so you are not charged when you go below your current balance. To find out more about the different types of student bank account available, check out our blog. Despite your overdraft being interest-free whilst undertaking your course, it will need to be repaid when you graduate. Using your overdraft for emergencies is perfectly fine, but when you start maxing it out, it can soon become a dangerous cycle. Here we have put together four tips on how to stay overdraft free whilst at uni.
1). Check your bank regularly
This one might seem obvious, but you would be surprised at how many students don't check their bank account. Out of sight, out of mind seems appropriate here. Every bank has mobile banking and an app that can be downloaded on your phone so you can easily access your latest transactions. The more frequent you check your account, the more up to date you will be with your spending so you'll know how much money you have to play with.
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2). Set a budget
Having a budget is one of the best ways for keeping track of your money. Budgeting how much money you will spend on food or your nights out will allow you to see how much money you can spend weekly. Concsiouly you will become more aware of how much things cost and you will be more likely to stick to it. For example, when you take a shopping list into Tesco, you are more likely to buy what you need instead of what you want. This is a similar thing, as you will leanr to live within your means so you are less likely to overspend.
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3). Use cash not your card
Contactless cards have made spending so much easier, I mean you don't even have to remember your 4 digit pin anymore. Having physical money in your hand makes it more real and you can see what you're spending it on. Using your debit card makes you less conscious of how much money you are actually spending, the theory is, if you have £20 left to last you the week, you will be less likely to spend it on things you don't need.
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4). Save where you can
Putting money aside every week or even every month will mean you won't have any nasty surprises when you check your bank account as you should have some spare. If you have two bank accounts, you could always set up a standing order and transfer a set amount into a certain bank account each month. Being a student, you are blessed with many offers and discounts to help you save some extra money. If you become a premium tenant with us, you will receive a green key fob which entitles you took discounts throughout Chester. Check out our offers and discounts page for more information.
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If you are a fresher and found this helpful, check out our blog for more student tips and advice.