Students and their money

London remains the most expensive place in the UK to be a university student, with average term-time spending of £1,000 a month, £400 of which goes on accommodation, according to research by the Halifax.

About half of the capital’s students have part-time jobs to help fund their costs, working an average of 13 hours a week during term-time. But those heading out of London to study elsewhere in coming weeks could also be hit by a five per cent increase in average costs on last year, underlining the value of seeking out savings wherever possible.

Cutting insurance costs: students are more than twice as likely to be victims of burglary, while one in four of those who cycle are said to have had their bikes stolen. Covering items through a parents’ policy can be cost-effective. Such cover is commonly termed “all risks” or “away from home” and is sometimes automatically included in policies.

Can I skimp on car cover?
Cheap money: the real value of student bank accounts lies in the interest-free overdrafts of up to £3,000 (in the case of Halifax) rather than the freebies such as a student railcard (Natwest) or £50 cashback (Abbey), so don’t be drawn to the incentives.

Student loans are also a cheap way of borrowing - the interest cost is equivalent to the rate of inflation - currently 0 per cent - and the money is only repayable after university on earnings over £15,000.