Money Matters

Sydney Morning Herald

Friday February 1, 2008

Deborah Cassrels

it's important to know how to balance a budget if you are to survive at university, writes Deborah Cassrels.

First-year students gearing up for university have a host of new responsibilities on their plates, not least learning how to budget. Without the props of a structured school system and the parental purse, it's imperative students learn to manage their money. But it's a challenge.

"They need to have everything down in black and white," says Nick Cooper, financial officer for the special needs and financial assistance service at the University of Technology, Sydney.

UTS provides advice on calculating weekly and annual costs of rent, food and entertainment. Bond, furniture, internet, phone, gas and electricity are included. "Students work out quickly how far their money will take them and how much they can spend," Cooper says.

Paying rent should be regarded as the top priority, says Ben Alfred, financial assistance officer for student services at the University of Sydney. "If students don't pay the rent they have nowhere to live and nowhere to study."

Alfred advises students in share accommodation to budget $120-plus a week for rent, $90 for food, $10 to $20 for bills and between $220 and $660 a year for textbooks, with additional costs for internet access and travel to university and work. "Be realistic as well. You are going to go to the uni bar and have a beer, so include that in your budget." Watch the cappuccinos though, Cooper says. "They add up substantially over a year."

While rent is the main expense, food is sometimes scrimped on, depending on students' income, he says. Students should shop at discounted supermarkets and resist eating out.

Text costs can be exorbitant, with books in courses such as medicine and law costing upwards of $100 each. Students at UTS who can prove financial hardship receive book vouchers. Most universities provide second-hand bookshops and book co-operatives, while the library is always a good source.

Macquarie University's website advises: "At your first lecture or tutorial ask your academic which books they regard as essential reading."

Some books can be bought at later stages or accessed in the library. Also check out the second-hand bookshop.

UTS, along with most universities in NSW, provides financial assistance to students in need, advice about fees and charges, recycled computers to students on low-incomes, Centrelink assistance and contact with tax-help organisations. Agencies such as Wesley Creditline help with free financial counselling.

Alfred says new students should check if they are eligible for Centrelink's Youth Allowance, Austudy or Abstudy payments. Youth allowance, calculated on an individual basis according to other income, provides regular fortnightly payments to help cover expenses. Typically, students work part-time or casually to subsidise the allowance.

Macquarie University offers interest-free loans to students of $1400 (or $2000 in special circumstances) to cover the cost of items such as textbooks, computers, equipment and living expenses.

At the University of Sydney, Alfred says 420 first-year students received interest-free loans and bursaries last year. A bursary works in a similar way to a scholarship, with students applying for a grant. The university offers bursaries of up to $2000 to help with set-up costs, including a bond, furniture, computer and books.

Finally, but importantly, social contact does not have to be expensive. If there is something free on at the uni bar go to that, Alfred says. "You don't have to pay $20 to get in and it becomes a much more affordable night out." Universities have free trivia nights, theatre sports and bands.

SAVING TIPS

* Save 10 per cent of what you earn. If you earn $400 a week and save $40 each week, you will have enough for a holiday out of Sydney.

* Look for special offers from financial organisations but be wary of hidden costs.

* Open an extra account where you cannot draw money for a fixed period.

* Pay off your debts on your credit card on time each month so you don't get charged interest.

* Set aside your rent money when you get paid or have the money automatically debited from your account.

* For cheaper textbooks, check out the second-hand bookshops or ask students a year ahead of you if they are interested in selling their books.

* Grocery shop at discounted supermarkets. Avoid using costly convenience stores. Shop for fruit and vegetables at markets. Some universities have food co-operatives.

* Shop for household items at discount stores, second-hand shops, markets and garage sales. International students returning home often advertise near-new items on university noticeboards.

* Check your email at uni. It saves connecting to the internet and paying.

* Look for student deals. You are eligible for discounts on many goods and for entry to movies, museums and galleries.

* Ask for a student discount when shopping for goods and services.

* Public-transport concession entitlements are available for full-time students on CityRail, CountryLink, Airport Link, Monorail services, Sydney Buses, Sydney Ferries and Sydney Light Rail.

* Most cinemas have cheaper tickets for films on Tuesdays.

* Buy discounted computers at Virtual Communities (www.virtualcommunities

.com.au) and Auction Trader (www

.auctiontrader.com.au). Green PC sells used government and business computers to those with documentation relating to low income or disadvantage (www.greenpc.com.au).

* Shop around for a low-cost internet service provider. Some ISPs have budget plans starting at $10 a month with the monthly fee capped at $25.

* Use a pre-paid SIM card in your mobile phone - you can only make calls if you have credit.