Going to college

It can be hard to get your finances sorted when you're in college, especially if you don’t have a regular income and you are on a tight budget. Managing your money will take a bit of effort at first, but it is worth it in the long run.

Make a realistic budget
Choose your account wisely
Be careful with credit
Manage your bills
Money saving tips
Tackle debt straight away

Make a realistic budget
If being in college means living away from home, rent will probably be your biggest expense and you’ll need to carefully plan how much it will cost to live every month. Even if you are not renting, you will probably have lots of additional expenses and making a budget and sticking to it is the best way to avoid running out of cash and having to borrow money. If you receive a lump sum, for example a grant, work it into your monthly budget and stretch it out over the term.

Our handy budget planner can help you plan your budget and gives you a breakdown of your spending, so you can see where you may need to make changes.

Choose your account wisely
If you are just starting off college you may want to open a bank account. If you are an international student, you will need a letter from your college stating:

• you are a student at your college
• the name of your course
• your address in your home country
• your address in Ireland
  

Student accounts are usually free from transaction fees, such as ATM withdrawal fees or standing order set-up fees. However, there is an annual Government stamp duty on ATM cards, debit cards and credit cards. Check out the Revenue website for up-to-date figures.

Many providers will offer you freebies, such as a cash bonus or free flights, to encourage you to open an account with them, but look at all the fees and charges and think about how you will use your account.

If you plan to get an overdraft, compare the overdraft fees charged by each provider and the penalty fees that apply if you go over your limit. You can compare these charges in our student current account cost comparison. 

Some other things to compare:

• The networks of branches- are they easily accessible for you?
• Access to your account- do they offer internet and phone banking? 
• Additional benefits, such as a 'no-fee graduate account' when you finish college.

Be careful with credit
Some banks may offer you overdrafts or student loans. Before you consider borrowing money, you should see if you can save to pay for what you want or whether you could earn the money with a part-time job. If you do need to borrow:

• don’t borrow more than you can afford to repay. Our loan calculator can help you work out what you can afford;
• aim to pay the money back in as short a time as possible, based on what you can afford; and
• look for a low annual percentage rate (APR). Our student loan and travel loan cost comparisons can help you compare the student loans on offer.  You can also contact your local credit union to see if they are offering loans to students.

Remember, there may be extra charges if you miss repayments. And, if you don’t meet your regular repayments, it will affect your credit record. If you think you may have trouble making repayments, get in touch with your lender immediately.

Credit cards are a convenient way to pay for goods and services, for example booking tickets or flights online. If you are thinking about getting a credit card, you should compare the different terms and conditions and look for a low APR.  Use our student credit card cost comparison to check out your options.

Be careful how you use your credit card- your credit limit is not a target . If you use it too much, even for small things, and don't pay off what you owe, debt can mount up quickly. Before you use your card to buy something, ask yourself if you can really afford it. Try to pay your bill in full each month, or else your balance owed can build up very quickly, leaving you in debt.

Manage your bills effectively
You can pay your regular bills by standing order, direct debit or credit transfer. Check your account regularly to make sure that you have enough money to meet these bills. If you don’t you may have to pay a penalty fee.

Money saving tips

• Save on your utility and phone bills - the Power of One site has lots of energy saving tips to help you cut costs. And you can save money on your mobile, by comparing costs on the Comreg site callcosts.ie.
• Look for student discounts and try buying online – many shops offer discounts for students with a valid student card, so it’s worth asking. And try buying online, you’ll often find better deals on clothes, music, books etc.
• Save on your grocery bills - check advertisements for regular special offers. The National Consumer Agency's review of supermarket costs shows there are savings to be made. Make a list of your meals for the week and stick to it, and use all the money off coupons you can get your hands on.
• Claim your tax –you may be entitled to a tax refund if you worked over the summer. You can get more information on the Revenue website. 

Tackle debt straight away
If you find yourself having difficulties making loan repayments or trying to pay off credit card debt, don’t ignore the situation. If you miss repayments, it will affect your credit history and might prevent you from getting a loan in the future. 

Our action plan explains the steps you can take to tackle the problem.

You can get more information on managing your finances in our student finances podcast.

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