Whether you’re a struggling student or the parent of one, here are our top tips to being good with money (in every way) while at university.
1. Your current account
Think about the organisation that ‘looks after’ all your worldly wealth (or lack of). Why did you choose this bank? Was it because it was the one your parents have always banked with? Or did they offer you the biggest overdraft? Maybe you were swung by a discount student rail card or even a free pizza or two? Well there’s no shame in any of that. But have you ever thought about where the money you use for your beer, new clothes, daily chai lattes, or the odd Uber, actually comes from?
Has this bank got fat on the profits of palm oil fields and fossil fuels? Is it funding tobacco, alcohol, porn or even darker industries such as child labour or fracking? To give you an idea, if you bank with one of the ‘Big Five’ high street banks (which almost three quarters of British adults do), chances are it has its fingers in some of the above not-so-palatable pies.
If you’re comfortable with that, then cool, but if not, you may want to opt for a nicer bank that doesn’t have quite the same marketing budgets to spam you with freebies into not caring. They DO exist.
Check out Banktrack to see which industries your bank funds. And then check out our top ethical current accounts that are making a more positive contribution to the environment or society.
2. Your overdraft
An overdraft, and the challenge of staying within one, is likely to feature heavily in your student finances. But not all overdrafts are the same. It can be confusing, of course. And what’s a percentage point or two between friends, eh? Well, once you’ve graduated off into the sunset, it could make all the difference in terms of what you’re paying back each month and how long that debt is allowed to linger.
3. Spending
There’s a few essentials, sure, but it is possible to economise and still be green.For example, if you have a car, do you really need it? Can you cycle, walk, or use buses and trains – often with a decent student discount. It could save you a LOT of money in running costs and you’d be making less of an impact on the planet, too.
Clothes shopping – it’s amazing what you can get barely worn on sites like eBay, Preworn and Vinted etc – this will save you money, too. If you must own the latest fashions, then think about where you shop – fast fashion may be cheap for you but not so cheap for society or the environment in the long run. For the student staple of jeans, see our top ethical options here.
Food – meat and fish (especially compassionately raised) can be expensive, but it is possible to cook some very nutritious and wholesome meals on a budget if you’re a veggie – even a part-time one. Check out Jack Monroe’s (A Girl Called Jack) Cooking on a Bootstrap for delicious budget meal ideas.
4. Saving
Saving when money’s already so tight is no mean feat. But anything you manage to put by could help out big time further down the line. To start with, it’s worth moving all the cash you don’t need in the next month to an instant access savings account. That way, it can be earning interest while you’re not using it. The interest won’t make you a millionaire, but might finance a few coffees. Just don’t forget to move it back to your current account before you need it.
For a more substantial rainy day fund, try to put aside a set amount every month. What happens if you break your phone? Or your bike gets nicked? Or your car breaks down? Anything you can manage to put by can help you out in the future.
Save money while you spend money. Auto-savings apps can round up whatever you spend on your debit card and save it into a savings account, tax-free Cash ISA or Stocks and Shares ISA. Easy as pie.
And, if you do care about the planet, you don’t have to choose a savings provider that’s helping fund the wrecking of our world while you’re spending your years trying to work out how to save it. Check out our top ethical savings accounts here, and top-paying picks here.
4. Divest, divest, divest!
You might have seen this word around campus on campaign boards or social network groups. Don’t turn off and think you can’t do anything. If you care about the future of the planet you’ll be living on for the next 60 plus years, then helping your alma mater get down with divestment – the withdrawal of funding from fossil fuel companies as a protest about their activities, could make a huge difference.
Fossil Free is a growing international divestment movement calling for organisations, institutions and individuals to demonstrate climate leadership and end their financial support for the fossil fuel industry. Already, a growing number of universities, cities, religious institutions and organisations around the world have committed to divestment. From Tobacco to Apartheid South Africa, history shows us that divestment can make real change.
Don’t forget your own money – see our easy ways to make your money fossil fuel free here.
