Financial Advice

You might feel daunted by looking after your money as a student. Setting a budget is a great way to plan how much money you have coming in while taking control of what’s going out. Paying the bills is the priority, but keeping money aside for fun is also important. Learning to manage your money gives you the balance you need while you’re a student, but you’ll also be learning a skill for life.

Budgeting Sessions

Our Student Finance Advisers can help with your budget. You can:

• Discuss your current budget and how to improve it
• Chat about how to set up a long-term budget
• Talk about what might be going wrong if you can’t stick to a budget
• Set up a brand new budget from scratch with us

If you’d like a one-to-one budgeting session please contact us.

International Students

You can find useful information about money management as an International Student through the British Council.

You may find it convenient to pay your rent, fees and bills by direct debit. This is where you give permission to a company to take money from your bank account at an agreed frequency. You might choose to pay your utility bills by monthly direct debit, but you can also set this up to be paid quarterly depending on how you want to manage your budget.

A standing order is similar to a direct debit, except you tell your bank to pay a person or organisation, instead of the organisation taking money from your account. The biggest difference is that you are the only person who can make a change to a standing order. The organisation is unable to alter your payment.

Direct debits and standing orders are very handy because you can plan ahead and make sure you have enough money to get you through the term. They also reduce stress because you know you won’t miss an important payment.

Student bank accounts are like current accounts but tend to offer beneficial rates and terms to students in higher education. To open a student bank account you usually need to be over 18 and studying on a full-time degree course. How long you have been resident in the UK may also be considered, but this varies from bank to bank.

Students who wish to open a UK bank account may need a letter of introduction from the University to give to the bank when they apply to open an account. Normally only International students will need this letter, if you are a UK student a certificate of registration which you can produce from the S3P student portal will normally be sufficient to prove your status as a student.

For more information on opening a bank account please read our arrival pages.

Overdrafts

An overdraft gives you the ability to withdraw more money than you have in your account. The bank allows you to borrow money from them when your money has run out.

Most student bank accounts will not charge you for borrowing this money, and will offer you an authorised and agreed interest-free overdraft limit.

Shop around

Student bank accounts are a very competitive business. Banks will compete for your business by offering freebies such as a Young Persons Railcard or discount cards. Incentives should not be a priority when choosing a bank account. Most students find the interest-free overdraft facility is more useful.

Some things to remember

• never exceed the agreed overdraft limit, otherwise you will incur a charge
• always check the interest rate and other charges for exceeding your agreed overdraft limit
• never borrow more money than you need – you'll need to repay it after graduation
• find out when the overdraft needs to be cleared – some student bank accounts want repayment of the overdraft soon after graduation; others will allow the interest free-overdraft to remain for a year after graduation

The way in which you manage your overdraft as a student can affect your credit rating.

Look for a bank that will allow the biggest interest-free overdraft for the longest period of time.

Compare accounts

To find the best bank account for you, take a look at comparison sites:

• Money Saving Expert
• Money Facts
• Save the Student

If you're an international student, it's unlikely that you will be able to open a UK bank account before you arrive in the UK and register at the University.

It can take several weeks to open an account. You need to make sure that you have enough money to cover your living costs when you first arrive in the UK. You might be able to open an international account from your home country. If you can, make sure that you will be able to withdraw cash from cash machines in the UK.

To open a UK bank account, you will usually be asked to provide:

• your passport
• confirmation of your local address
• an original copy of your letter of acceptance from the University
• proof of your address in your home country, although not all banks will ask for this

Students who wish to open a UK bank account may need a letter of introduction from the University to give to the bank when they apply to open an account. Normally only International students will need this letter, if you are a UK student a certificate of registration which you can produce from the S3P student portal will normally be sufficient to prove your status as a student. If you need a bank letter you can request from Student Services, Level 2, King’s Gate Building.

Shop around

Many of the UK major banks have local branches close to the University campus. Most UK banks usually offer a very basic service to international students. Shop around and compare what each bank can offer.

For reasons of personal safety, you should not carry large sums of money around, or keep large sums of money in your home.

If you're on an exchange year or a placement overseas, you will need to think about the best way to access your money and avoid paying international transaction charges on a regular basis.

Every country has its own banking system and regulations. When you arrive at your destination:

• ask local students or your employer for advice about local banking arrangements
• find out what other students did during their exchange or placement

It might take a little while for you to open a bank account when you arrive at your destination. Make sure that you have enough money to cover your costs when you first arrive.

It is probably a good idea not to carry large sums of cash around. Look into the option of using a pre-paid travel card, which allows you to load the card up with money before you leave. Use a comparison site to check you are getting the best deal.

Before you head off, you should also speak to your UK bank to check:

• whether it is possible to continue to use your UK bank account
• the options for receiving and sending money overseas
• what charges you will incur

The Money Advice Service and Money Saving Expert have more information about sending money abroad. You might also discuss the best ways of transferring money overseas with your family before you leave the UK, in case you experience financial difficulties and need cash in an emergency.

There are lots of different ways to borrow money. If you borrow money, you will usually have to pay it back with interest added to your loan.

Before you borrow money, make sure you can make repayments on what you borrow. If you’re in doubt, contact the Student Advice Centre.

If you live in university halls or live in non-university accommodation where everyone in the household is a full-time student, you won't have to pay council tax. You'll need to provide your local authority with proof that everyone who lives in the household are full-time students.

Students who are exempt from paying council tax are disregarded for council tax purposes for the period beginning with the first day of the full-time course until they have completed the course, withdrew, or been dismissed from it.

A full-time student is someone who:

• attends a course at a prescribed educational establishment or institution

They are undertaking a full-time course of education:

• which lasts at least one academic year
• requires attendance for at least 24 weeks in each academic year
• normally requires an average of 21 hours a week study, tuition or work experience or a combination of such during periods of attendance

If you study full-time but live with an adult who is not a full-time student, your household will be issued with a council tax bill. If you prove you are a full-time student, a 25% discount should be applied to the bill.

As a full-time student, you are not legally responsible or liable for the bill. You may want to discuss how the bill will be paid with the person you live with.

If you study full-time and live with other people who are not full-time students, your household will be issued with a council tax bill. You won't be eligible for a discount. As a full-time student, you are not legally responsible or liable for the bill, but you may want to discuss how the bill will be paid with the people you live with.

Taking time out of your studies

If you take time out of your studies for personal reasons such as illness, you will remain exempt from council tax as long as you remain registered as a student with the University.

If you're studying a full-time undergraduate course on a part-time basis, you will still be exempt from council tax.

If you need help with this, contact the Student Advice Centre.

Full-time, fully registered students are exempt from council tax.

Once you have submitted for your programme of study and are ‘Under examination’, you will no longer be eligible for a council tax exemption certificate.

Students are not classed as full-time and fully registered while ‘Under examination’.

International students are treated like UK students when it comes to liability for council tax.

Spouses of non-EEA international students will have the student's exemption extended to include them if:

• they are non-British and non-EEA citizens
• the terms of their visa exclude them from working or claiming benefits

The UK Council for International Student Affairs (UKCISA) has more information.

If your household is required to pay council tax, you can decide in your household who will contribute to the bill. If you are a full-time student, you are not legally responsible or liable for the bill.

Applying for an exemption or discount

If you think that you are exempt from paying council tax, you will need to submit:

• a student discount/exemption application form to your local council
• a council tax exemption certificate which provides details about you and your course

Apply online if you live in:

• Newcastle
• Gateshead
• North Tyneside
• South Tyneside
• Northumberland
• Sunderland

You can print a council tax exemption certificate yourself from S3P, the Student Self-Service Portal. If you are unable to print the certificate yourself, you can email us to request one or get one from:

• HASS and SAGE students: Student services, level 2, King's Gate
• Medical students: Medical faculty student office
• Dental students: Dental school office

Whenever your personal circumstances change, you need to let your council tax department know. Your council tax account may need to be updated, depending on the nature of the change, or may need to be closed down if you move house.

You'll have to pay for each item on your prescription.

If you need more than three items in three months or 11 items in a year, you'll save money by buying a Prescription Prepayment Certificate (PPC).

NHS dentistry charges vary depending on the treatment you have:

Urgent dental treatment

• emergency care, such as pain relief or a temporary filling, in a primary care dental practice

Band 1 course of treatment

• examinations
• diagnosis (including radiographs)
• advice on how to prevent future problems
• scale and polish if clinically necessary
• preventative care (for example, applications of fluoride varnish or fissure sealant)

Band 2 course of treatment

• everything listed in Band 1
• plus any further treatment, such as fillings, root canal work
• if your dentist needs to take out one or more of your teeth

Band 3 course of treatment

• everything listed in Bands 1 and 2 above
• plus crowns, dentures, bridges, and other laboratory work

If you need dental treatment, you might be able to register with the University's Dental Hospital. If they’re recruiting patients, you could receive free dental treatment.

You may be eligible to apply for help with the costs of:

• NHS prescriptions
• NHS dental treatment
• sight tests, glasses and contact lenses
• travel to receive NHS treatment
• NHS wigs and fabric supports

If you’d like to apply for help, you’ll need to complete an HC1 form (NHS exemption application) (PDF: 181KB). If you can’t print the form, get one from the Student Advice Centre. They're also available at:

• Jobcentre Plus offices
• most NHS hospitals
• some doctors, dentists, or opticians

You can also get an HC1 form by calling 0300 123 0849.

You’ll be asked to supply information about your income and expenditure. You'll be assessed once you've submitted your HC1 form.

If you’re eligible for a full exemption, you’ll receive an HC2 certificate. If you’re eligible for a partial exemption, you’ll receive an HC3 certificate which will outline what you’ll need to pay towards your health care costs.

As a student, you are free to use the hundreds of University computers to get online and keep in touch, completely free of charge.

There are plenty of options for contacting friends and family back home using the Internet such as:

• email
• Facebook
• instant messaging

If you use the University computers to keep in touch in this way, don’t stay on a computer for too long if other students are waiting to get on with their coursework. Don’t try to install any software, as this contravenes University guidelines.

If you’re living in private accommodation and have web access and a computer, you could use:

• Skype
• any other reputable VoIP (Voice over Internet Protocol) software will let you make free calls to anyone using the same system, wherever they are in the world. You can even make video calls if you’ve both got a fast enough connection

You can also use Skype to call people on their home or mobile phones at a fraction of the cost of calling from a telephone. You can pay in three ways:

• after you’ve made the call (the most expensive option)
• by buying a block of minutes to a specific country
• by subscribing to an international calling plan

Some countries, including Nigeria, don’t fall into any of the packages. To call those, you should buy blocks of minutes.

If you brought your mobile phone with you when you moved to the UK, try not to use it to call international numbers. Instead, get an international SIM that you can use in your existing phone in place of the one provided by your operator back home. Make sure you choose a SIM from a reputable provider, such as the: 

• O2 International SIM
• EE Pay As You go International Plan

If your phone is from a UK provider, you may be able to get discounts on a range of international calls or calls to a specific country. Different providers offer different discount options, so call your provider for advice.

If you can’t find an international calling card, use an access number instead. These work in pretty much the same way in that you dial via an access number. All charges are added to your phone or mobile bill instead of being deducted from a prepaid balance.

Access numbers (or “simply dial” as they’re often known) are usually slightly more expensive than calling cards, especially if you’re calling from a mobile. But they’re certainly better than nothing. They can come in handy if you are unable to add credit to a calling card when you need to make an urgent call.

If you live in University accommodation, Internet will be included in your rent. If you live in private accommodation you may want to get broadband at home.

However, there are plenty of places on campus where you can get online, including the libraries, and you can access WiFi anywhere on campus. The Philip Robinson Library alone has more than 425 computers, and as a registered University student you’re free to use them up until the library closes. Do you really need broadband at home too?

The library computers are very popular, and students may spend hours at a time logged on. Get there early to make sure you get a computer. If you're only using one for keeping in touch with friends, spare a thought for students who may be waiting to research or complete their coursework, especially during busy periods.

If you still think that you absolutely must get broadband where you live, take the time to compare your options. Find yourself a good deal by visiting an Ofcom approved student broadband comparison site.

Most broadband packages have a minimum contract term of at least 12 months. If you leave before that, you may be left with very hefty exit fees. So, make sure you get a package with an appropriate contract length.

If you'll be leaving your student accommodation in the summer, get a broadband deal with a nine-month contract. Nine-month broadband contracts are pretty rare, but some top providers offer them during the first couple of months of the autumn term.

If you’ll definitely be staying in your student home over the summer, you won’t need to worry about short contract broadband. Packages with 12 month contracts often work out cheaper than short contract deals, and you’ll still be able to get online during the holidays. So, if you’re 100% sure that you won’t be leaving or moving once the summer term ends, you’ll most likely find that you’ve got many more options for getting a good deal on broadband.

You need to work out what your budget is and then stick to it!

When you place your order, you'll almost certainly be offered some added bonus that sounds like a bargain; but something’s only a bargain if you need it and you can afford it.

With almost all types of broadband, you'll also have to pay line rental. This can add around £15 a month to your bill. Be careful to take any one-off charges into account, such as installation or activation fees, non-direct debit charges and so on. Make sure you know exactly what you're going to pay before you buy.

If you're in a shared house, pool your funds together to get a good package that will be fast enough to support you all. 

If you live alone, speed and download limit (or “monthly usage allowance”) probably won’t be too much of an issue, especially if you keep your movie downloads to a minimum. Look for a budget deal and make sure you stick to your download limits, or get one of the cheaper and slower fibre optic broadband packages.

If you're going to be sharing a single broadband connection amongst a houseful of fellow students, you will need a faster option with a high or unlimited usage allowance.

Many providers offer broadband in bundles with home phone and digital TV. Buying two or three services from a single provider usually works out cheaper than using a different provider for each. But, as with anything else, this only represents good value for money if you were going to buy these services anyway, and if you can actually afford them!

When ordering your broadband, you may find that the provider tries to “upsell” to you. They will encourage you to take other services, so be careful what you agree to order. If you can afford it, get digital TV to go with your broadband, but make sure your budget can cover it.

If you get a package with TV, you’ll also have to buy a TV licence or risk a very heavy fine.

There are lots of different ways to buy a TV licence. You can:

• use a TV licensing payment card and pay online, by phone, at any PayPoint, or by text
• spread the cost with a monthly or quarterly direct debit
• make one payment every year, by direct debit, cheque, postal order or BACS, or by taking a debit card or cash to any PayPoint

Find out more about ways to pay for a TV licence.

Your room needs to be covered by its own licence if you:

• watch or record programmes as they're being shown live
• download or watch BBC programmes on iPlayer

If there are TVs in communal areas, check with your halls' manager to see if they’re covered by a halls' licence.

You'll probably only need one licence between you if you have a joint tenancy agreement for the whole house. This is the most common type of shared house arrangement.

You might need your own licence if your accommodation is self-contained. Accommodation is self-contained if you have exclusive access to washing facilities, or your own entrance to the property.

You will also need your own licence if you have a separate tenancy agreement for your own room.

Find out more about the TV licence for tenants and lodgers.

Your parents' licence will not cover you while you're at university unless you only use a device that's powered solely by its own internal batteries and not connected to the mains.

If you're leaving your halls or rented accommodation and moving back home for the summer, there's a good chance you won't need your TV licence if there's one at home.

Find out more about TV licence refund and cancellation.

If you don’t need a TV licence, let TV Licensing know so that they can update their details. They will send you confirmation of your 'No licence needed' declaration. They may confirm this with a visit to your address. They won’t send you any letters for approximately two years.

The Government is responsible for setting the licence fee.

The fee may be increased annually on 1 April. The cost of the licence is:

• One-off payment of £159
• £41 every 3 months
• £26.50 a month for 6 months then £13.25 a month

It is against the law not to have a TV licence and it could lead to a court appearance, a fine of £1,000 or even prosecution.