FLYING THE NEST

Becoming a university student involves a lot of life changes. Not only are you learning a whole new subject, making new friends and getting used to a new city, but you also need to start learning how to pay bills and how to find the money to have fun! We have pulled together a quick guide to ease you in to living independently. 

1. Should you live in house or halls?

There are several options for living accommodation when it comes to university.  If you’re not moving to a new city, maybe you can stay at home, but it’s a good idea to stretch your wings a little and really experience the university experience.  Living on campus in halls is often a popular choice for the first year of higher education, or you could move straight into private accommodation.  There are pros and cons for both these options, but both depend on what kind of preferences you have.

Living amongst your fellow students can make the whole experience a little less scary than going it alone as others are in the same boat as you.  You can bounce off each other, reassure each other, and hopefully, start making friendships that last a lifetime. And you also won’t have to worry about regular bill payments, rent etc as it’ll all have been paid as part of your enrolment. On the downside, it can be a distraction from studying, or you could be matched with people with different interests to yourself.

When it comes to flat-share or a house share, you’re thrown straight into becoming your own boss, and getting stuck into adult life.  Bills will need to be paid, and in the same way as halls, you’ll be in charge of your own meals and washing. A negative of this set up however is being apart from the support system of a campus, you never know when you might need a friend, especially in these early days of your new life.

2. Do you need to get a job at university?

Having a regular income at university is mostly a good idea. Not only will it start getting you used to being in a working environment, but it’ll also provide a little more funding for your lifestyle.  But many may struggle with negotiating studies around working – make sure you are able to manage your schedule effectively before you take on more responsibility. Industries normally littered by students are bar work, service industry jobs, shop work. They’re quite flexible and help earn a little extra cash. Some universities may even have vacancies on campus, in student bars or libraries. These may be a little more understanding about your study time as well.  Online research groups and freelancer work could also be a source for extra cash; after all, if you spend most of your time online anyway, why not make some money!

3. Paying bills
Ahhh, the dreaded bills. A downside of growing up if ever there was one. But although it’s easy to start feeling swamped by them, there are lots of ways to deal with them and paying them will soon become an unnoticed habit.

• What type of bills will there be?
  Utilities – These involve electricity, gas and water. Take the time to peruse the providers available for these to ensure you get the best deal. Make sure you divide these costs if you live in a house-share, (sharing bills should be a rule set on day one!)
  Essentials (Well, at least the essentials in today’s world!) – Internet, TV Licences and TV packages.

4. One of the best bits – the FUN!
Obviously higher education comes with a great deal of fun, as well as studying. The downtime is just as important as the learning for life experience after all! So making sure you have enough pennies to enjoy these nights out is crucial, overdrafts can only get you so far! Some tips on how to save where you can while having fun:

• Streaming sites: These services avoid “necessary” trips to the pub to sneak a watch of your teams’ big game. You’re sure to only spend money while out. Streaming services can provide decent packages for a small monthly charge, and you can cancel very quickly and easy as well, if it all starts to get too much.
• Free events: Many universities hold free events, or at least events with free food and drink, so have a little look around campus to see what you can find.
• Travel light: One of the most expensive elements of higher education is the travel between a family home and campus. Or even just your student digs and campus if the city is quite vast. The first thing you should make sure you have in your purse or wallet is a Student Railcard (16-25’s eligible). Another way of travelling on a budget is to use a coach if available – National Express offers very cheap journeys, but make sure you factor in a much longer journey, and the fact that you’ll be on a coach!
• Deals: Let’s face it, a student night is not complete without a good 2 for 1! Saving a bit on every drink is always going to helpful but remember…all in moderation!

If you bear these tips in mind, you should be set for your first year out of the nest. Now you’ll have an idea of what your parents have been doing for you for so long, so make sure you don’t forget them back at home and check in!

Source:
*https://www.savethestudent.org/money/student-money-survey-2018.html

MONEY TALK: NO LONGER TABOO

Talking about money and personal finances is perhaps one of the most classic British taboos*.  As the saying goes: “There are two things you never talk about in life: money and politics”.   

However, in an era where people are much more open talking about a variety of topics, why does ‘money talk’ still have to be secret? Why is it still considered taboo and almost crude? Is there anything that can help us get the conversations flowing?

Even amongst family, people would prefer to avoid the subject of money, in fact 43% of people don’t know how much their partner earns, and 36% are unaware of how much their other half has managed to save**. People would rather talk about almost literally anything, from marriage problems to religion, than bring up the topic of money.

It’s possible that these feelings towards ‘money talk’ are simply a hangover from an era where all money worries were pretty much handled for you. A more patriarchal era where your company watched over your pension, and even those on modest salaries could afford to buy their own homes. ***

But as we all know, times have most definitely changed, and financial security responsibility often falls as a deadweight on an individual’s shoulders, (shout out to high house prices, student debt and insecure job prospects for that one!)These troublesome times may have left many struggling to even build a savings account that they feel rivals their peers. Investing accounts seem like an untouchable deity.

You can read more about how society changes influence on different generations in our blog, ‘millennials vs baby boomers’.

If you aren’t talking about money, there are simply too many things you may be missing out on or paying way over the odds for. Talking about things like rent, expenses, what higher salary could be available, are all topics that if discussed, could help improve your financial situation. We’re not saying share the inner workings of your tax return with the stranger next to you on the tube (although, of course, you are more than free to do so if the mood so takes you), but it could be important to talk to your nearest and dearest about costs you are questioning, simply to get another perspective.

Talking about money is also vital for our health and relationships.  It ensures people make better financial decisions, develop stronger personal relationships, help children form good lifetime habits and feel less stressed and more in control of their finances, and in the long run, their life. ****.

Building money conversations into our everyday lives could help make us resilient to whatever the future may throw at us, be it a sudden income change or a dramatic life event.

However, it seems in social circles that people don’t like to talk about money, because it all becomes “too real”.  Perhaps there’s a certain level of self-awareness that comes with bringing up the topic; a sense of bragging or, if you’re short of money, awkwardness.

Another reason for avoidance could be confidence. UK school curriculars may soon feature Financial education*****, meaning perhaps the next generation will be a little clued up about money. However, there are many adults now who feel they lack a basic understanding of money and therefore don’t want to discuss it and avoid it at all costs.

The world of finance is daunting, (at Tavistock Investments Plc we understand that!) but it doesn’t have to be. You can also read more of our education blogs here to see how understandable the topic can actually be.

If things like average salaries, how much rent someone is paying or even car insurance are shared, knowledge around the subject builds, and the whole topic becomes less daunting. These comparisons may even lead to more savings for individuals.

As the world changes, so must our attitude towards money and our willingness to open up about our finances. The only way to change tradition is to go against the norm. Start the process today and join the revolutionary thinking.

Sources:

*https://themoneycharity.org.uk/talking-money-how-to-tackle-a-very-british-problem/

**https://www.makingsenseofcents.com/2017/06/talking-about-money.html

 ***https://citywire.co.uk/funds-insider/news/we-need-to-talk-about-money/a1023411

 ****https://www.fincap.org.uk/en/articles/talk-money-week-2018

 *****http://www.thefrugalcottage.com/why-is-it-wrong-to-talk-about-money/