Money management

Good money management is an essential tool for your financial survival whilst here at University and is the key to making your limited resources go a long way.

This section has been designed to provide practical information on planning your financial resources, and advice on the payments for which you will be liable during your time here at Cardiff.

'Budgeting' is the art of keeping your spending under control. This is not as simple as it sounds, but the time you take planning your budget for the coming year will be well worth it.

In order to produce an effective budget, you need to keep track of everything you spend. It is therefore a good idea to keep a diary of your daily spending, whether it is in a shop, pub on a bus/taxi and even vending machines. Remember that small amounts soon add up - and it is likely that you spend more on them than you think.
In conjunction with this you will need to keep an accurate record of any cheques, debit cards and credit cards you use in order to get a clear picture of your financial position.

Why should I budget?

To obtain an accurate picture of your financial position.
To enable you to reduce spending in particular areas if need be. Thereby improving your overall position.
To prove to your parents, and your bank manager! That you are managing your money wisely.
As a preventative measure to running up substantial debts on which you may have to pay interest, and subsequently have to repay.

How do I budget?

Be honest about your spending
Record absolutely everything that you spend on a daily basis, even those five or was it six bottles of 'Smirnoff Ice' you had last night.
Concentrate on your priority spending
When you have produced a budget, look carefully to see what you are spending your money on, and does it accurately reflect your priorities?

What are my priorities?

Your individual priorities may vary slightly, but it is essential that you have food, shelter, warmth and light.

Rent
Food
Gas/Electric/Water Rates

Rent

Accommodation will be your largest expenditure. If you are in halls ensure that you pay your fees at the beginning of term. These fees normally include gas/electricity.

If you live in private rented accommodation, you could set up a standing order to pay your rent monthly.

However you must ensure that you have sufficient funds in your account every month, because if you become overdrawn without prior arrangement or you exceed your agreed O/D limit you will incur additional charges for the extra work involved in 'bouncing' a cheque or stopping payment of a standing order.

Food

Use the a book to guide your spending. Write a weekly shopping list and stick to it. Try to keep 'impulse' buying to a minimum.
Never go food shopping on an empty stomach, if you do will always be tempted to buy more.

Bills

Quarterly bills can come as a shock, as they are often higher than anticipated. Try and set aside a monthly amount to cover them, or why not spread payments over the year by paying by monthly direct debit again ensuring that you have enough funds each month to cover payments.

How can I improve my financial position?

Trim your spending on non-essentials to a minimum.
Avoid paying excess interest on your account/credit card.

Try to get a holiday/term-time job, this will enable you to repay any debts you may have accumulated during the academic year and start a new year in credit.