Finance advice
broadband, travel, toiletries, books or equipment, clothes and socialising. Don’t forget to include costs such as insurance and a TV licences, these can be all too easily forgotten as it’s not something you are spending on a daily business. Rent is likely to be your biggest outlay so work out
what this will be for the year, deduct this from your loan and then you can estimate a weekly budget. Once you’ve worked this out, there are lots of ways to minimise your spend or make your money work harder. The majority of universities have student discounts that could give you money off services in the local area, such as travel discounts, money off theatre, film tickets and restaurant meals, deals on days out and clothes. This is not an exhaustive list and discounts often tie in with the seasons so it's a good idea to register to receive the most-up-to-date offers at optimum times. It’s also worth getting an NUS card to unlock further discounts. Take advantage of the huge surge in upcycling and the
growing interest in sustainability by buying second-hand as much as possible - this could include kitchen items, any textbooks you might need and clothes. Consider taking a part-time job to help top up your
account - popular options for students include bar and restaurant work, shifts at cinemas and retail, with shops likely to employ temporary staff in the run-up to Christmas or during busy sales periods.
It’s payback time Repayments may be the last thing on your mind when you receive any loans but it’s important to know what the terms and conditions are. When you start earning, you’ll repay 9% of your income over the repayment threshold, which is currently £27,295 a year, £2,274 a month or £524 a week in the UK. If your income changes, either rising or falling, your repayment amounts will automatically change to reflect this. The median starting salary for UK graduates in 2022 has stayed in line with previous years, and is expected to be
£30,000 for the fifth consecutive year, but this varies quite a bit by sector. You’ll be charged interest on your loan from the day
you receive the first payment, until it’s been repaid in full or cancelled. While studying, and until the April after you've finished your course, the interest rate is the Retail Price Index plus 3%. Student loans come with no early repayment penalties and it doesn’t affect your credit rating. As you only pay back a fraction of what you earn to the loan, it’s not generally a good idea to pay your tuition fees upfront. Bear in mind too that any student loan that lasts beyond 30 years is written off.
Apprenticeships: need to know An obvious benefit of an apprenticeship is the ‘earn while you learn’ factor. All apprenticeships will receive at least the national minimum wage, although many employers may choose to pay more. The actual figure, however, depends very much on age at the time of starting, the sector and existing qualifications. If you are aged 16 to 18, or in your first year and aged 19 or over, you will receive at least £4.81 an hour, rising to £5.28 from April 2023. If, as an apprentice, you are working more than 33 hours a week, you are entitled to the same benefits as regular employees, such as sick pay and paid holiday. There are lots of factors that determine an apprentice’s
wage, both during and after the scheme, so make sure you do your research and check with the employer to find out exactly what you can expect to earn. And with many apprentices choosing to stay at home, financial issues tend to be less than those experienced by university students, although perhaps there is more of a burden on parents!
An individual’s earnings are said to increase in line
with the qualifications they achieve, putting apprentices in a great position. A recent report from the All Party Parliamentary Group on apprenticeships also outlined how they are playing a prominent role as the UK recovers from the pandemic. l
“An individual’s earnings are said to increase in line with the ualifications they achiee putting apprentices in a great position”
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