Money,money, mummy

By THIS IS MONEY
Updated:

 

HOPING for a quieter life when your youngster goes to university this autumn? Think again.

Nearly two-thirds of graduates plan to head for home once they have finished their course, a new survey shows. One in three say they will live with their parents while they study.

That's all down to cost. The price of a degree has jumped to more than £19,000 in the past year, bank NatWest says. Moving back home is one way a graduate can save cash.

'It seems that school-leavers are becoming more and more financially savvy,' says Ann Marie Blake, NatWest's head of student and graduate banking.

The bank's annual poll of student finance shows school-leavers predict they will spend nearly £855 a month on student essentials such as rent, food and books, beer and cigarettes. That estimate is not far from the truth, NatWest says.

It calculates that the cost of a degree is now £19,048, including tuition fees of up to £1,100 a year. Student debt is also on the increase, averaging £8,125 - up 44% on the year.

So how can your offspring keep their debts under control? NatWest offers these tips:

• Think about staying in university accommodation for as long as possible - it can be cheaper than renting privately
• Shop for food with friends - buying in bulk can save money
• Claim discounts. Make sure you use your NUS or ISIC card and also look in your Student Union for one-off deals
• Don't buy every book on your reading list on the first day of term. There will be lots of opportunities to buy second-hand books
• If you do work, check whether you have to fill in a form P38(S) so that tax will not be taken off your earnings
• Ask other students how much you will need to pay for bills. Complete a budget planner and regularly review it to see where your money is being spent
• Work out how much you can afford to spend a week and draw it out on a set day rather than keep visiting the cash machine
• If you find yourself struggling, talk to your bank as soon as possible.

For more on surviving student life, check our brilliant survival guide.

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