Money University

How to avoid going into your overdraft at University

The Growing Up Guide money savings budget overdraft

Being a student is not easy. There are so many changes and new experiences you face all at once, one of them being managing large sums of money.

For some people having a large amount of money in their bank account is too tempting and they end up treating themselves to one too many things, with the thoughts of it won’t hurt, just this once. But before they know it they are two-hundred pounds into their overdraft with no way of coming out.

For others, it can be peer pressure, they never had that much, to begin with, but their friends have loads and want to go on nights out.

Talking about money and lack of money can be hard especially to those who are fortunate to be well off and therefore do not see it as a big deal, leaving those with barely anything feeling forced to try and keep up. Here are 9 tips to stay out of your overdraft

 Do not open an overdraft at all

If you are one of those people who know you will be tempted and see your overdraft as extra money then avoid opening one, leaving you forced to only spend the money in your account.

Go small

If you feel as if you need an overdraft as a security net, then try to avoid opening such a large overdraft.

Some banks offer you the chance to choose how large your overdraft. If you were to open an overdraft of £500 and happened to go into during a year at university it is a much more manageable amount to pay off than £1500.

Create a spreadsheet

If you are an excel wiz then you can create a spreadsheet which includes any direct debits you may have and a weekly allowance.

Try and find a job

That extra cash can go a long way.

Reduce your spending

If you prefer to use notebooks or have a bullet journal then add an expenses tracker to your monthly set up, you’ll find that once you start noting down the amount you spend each month you’ll soon start to cut down.

Get a budgeting app

Download an app to your phone there are apps out there specifically for budgeting such as Yolt. Some banks allow you to budget through online banking as they can track where your money is going.

Leave the card at home

For nights out take cash and leave your card, with a card it can be so hard to keep track of your spending during a night out.

But with cash you only have the amount in your purse, some money is already set aside for a taxi and if you make sure you have enough for a round of drinks you are all set!

Take out cash

At the beginning of the week take out your weekly budget from a cash point, find a safe place to leave it and only leave the house with your budget for that day.

Perhaps that money is lunch money or you are paying for something to do with your course but this method will stop you from going shopping for things you do not need.

Give someone else control

If you are one of those people who really cannot control your spending, transfer the money to a parents account and ask them to give you a weekly allowance.

This ideally should be used as a last resort because you have to learn how to manage your money one day and you could say university is the perfect time due to the nature of how rent is paid.

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