Do now What do you already know I

Do now: What do you already know? I know… My Questions 1

Student finance: before and during University To understand the different sources of income available to students (loans, grants and bursaries) To explore bursaries available that you could apply for To understand the average student expenditure and plan a budget based on this How do I succeed when I get there? Financial literacy

Today’s Skills Aiming High: • Being aware of the cost of living for students and planning our finances is part of Aiming High Problem Solving: • Many students fail to plan their finances and end up in financial difficulty- today’s lesson will help us avoid this • We will also consider how you can make different decisions to help make university more affordable 3

Key terms: Match the terms and the definitions below Loan Usually based on merit (e. g. grades). Usually come from private companies or individuals. Does not need to be repaid. Bursary Usually income dependent. Usually from government money. Does not need to be repaid. Scholarship Any money lent to you, which will need to be paid back Grant Usually income dependent. Usually from private companies or individuals. Does not need to be repaid. 4

Key Terms Tuition Fees= up to £ 9, 250 Tuition Fee Loan Your tuition fee loan is paid directly to the university. You will pay this back in instalments once you are earning. Used for your living expenses. Maintenance Loan Amount given is based on: • Household income • If you are living at home or not • If you are living in London or not 5

What’s available? 1 2 1. Visit the highlighted website and read through the information 2. Scroll down to the bursaries and scholarships section. • Here you’ll see a link to ‘student bursary and scholarship sources’. • Have an explore of the sources of money available 6

Other money you may be able to access. . Ark Bursary • Ark has 57 bursaries to award to year 13 students each year • Most of the bursaries are for students who are of high financial need, as shown by being eligible for free school meals in the last 6 years. • Keep an eye out for more information about this at the start of Y 13 7

A quick note on student finance eligibility criteria • Most people will be able to apply for student finance. • Unfortunately there are some restrictions in place. • As you are planning for university, make sure you check the eligibility criteria carefully. 8

How much do students spend? • If we go to university, for many of us this will be the first time we are managing our own finances • We will be responsible for all areas of our finance including housing and bills • It is important that we consider and plan for this so we don’t run into financial issues later • An important thing to know is that student costs can vary enormously depending on many factors • Let’s have a look at some reasons for this… The following include example costs- you will have a chance to think about how much you would spend later 9

Where are you going to go to university? Your home town/ city Somewhere else 10

Money in: Maintenance loan Living at home Living away from home, outside London Living away from home, in London Up to £ 7, 747 per year Up to £ 2, 582 per term Up to £ 9, 203 per year Up to £ 3, 067 per term Up to £ 12, 010 per year Up to £ 4, 003 per term These are the maximum amounts you could be granted. 11 Many students will get a lower amount.

Money in: Part time work Why might you choose to work at university? Minimum wage £ 6. 15 per hour No part time work 12 hours per week 20 hours per week £ 0 per week £ 74 per week £ 123 per week £ 0 per term £ 888 per term £ 1, 440 per term 12

Money out: Accommodation • • • Flat shared between 6 Shared bathroom Self catered £ 1, 390 per term • • • Flat shared between 6 En suite bathroom Self catered £ 1, 760 per term • • • Flat shared between 6 En suite bathrooms Catered £ 2, 600 per term • Staying at home Free or paying rent? University accommodation varies in price based on what type of accommodation you choose, which city you are in etc. Bills may or may not be included- be sure to check and add these to your budget if they are not 13 The above are based on some average prices for these types of accommodation

Money out: Transport Birmingham student travel card (bus and metro) Travel to campus by foot If you live away from home: Tickets to go home £ 230 per term • How much you travel at university will depend on your lifestyle • If you are living at home, you may need to take public transport or your own car to campus. It may be a good idea to get a travel card • If you live on campus, you will not need to spend any money getting to and from university • However, you may want to visit your home city to see friends and family. £ 0 per term £ 30 per return journey £ 90 per term 14

Money out: Weekly food shop Shopping at Lidl or self catered accomodation Shopping at the local corner shop or buying brands Living at home £ 15 per week £ 180 per term £ 25 per week £ 300 per term £ 5 per week £ 60 per term 15

Money out: Course costs Expensive laptop £ 1, 500 Less expensive laptop £ 750 or less All new course books £ 180 per term (6 x £ 30 book) Second hand course books £ 90 per term (6 x £ 10 book) Borrowed course books (library) £ 0 per term 16

Money out: Course costs: https: //www. savethestudent. org/news/average-student-spending-per-month. html 1. General study costs 2. Course specific costs 17

Money out: Entertainment Cinema Meal out £ 10 per trip Shopping £ 20 per trip Takeaway £ 10 person Concert/gig/ theatre £ 50 per time £ 20 per meal Gym membership £ 7 per week Night out £ 30 per night out 18

Money out: Everything else! Phone contract £ 20 per month £ 60 per term Netflix subscription £ 9 month £ 27 per term Spotify subscription £ 5 month £ 15 per term Beauty products/treatments £ 25+ per month £ 100+ per term Insurance for phone and laptop £ 20 per month £ 60 per term Around £ 300 per term 19

Remember to Budget! Money coming in • Loans, grants, bursaries, scholarships • Part time work • Savings Must be equal to or more than Money going out • Your day-to-day costs • Any money you’d like to save! 20

Save the Student Budget Spreadsheet 1 2 1. Visit the highlighted website and read through the information 2. Scroll down to the button which says ‘download the student budgeting spreadsheet. • Download it and save a copy of it Teachers: this is also saved in the Ark 21 Library

Save the Student Budget Spreadsheet • This spreadsheet is similar to the one we created last half term • Set your ‘starting balance for the month’ to £ 0 • Save this spreadsheet so you can use it as a template in the future! 22

Average Student Costs • Go to https: //www. which. co. uk/money/universityand-student-finance/student-budgetcalculator • Have a look at a few different universitieswhat do you notice? • Fill in your spreadsheet for money out by choosing a university and entering the costs. • For each row, click the drop down and think about how you are likely to spend in this area • Extension: Think about your money in- work out how much you might get from loans/ bursaries and from working if you choose to 23

This resource is taken from the Money. Charity. org Teacher note: use if no IT available for the lesson 24

Problem solve for Sinead What advice would you give Sinead on managing her finances for the first year of University? Consider the following: • • • Cost of University Cost of living Bank account Student loans, grants etc Budget and saving. Come up with at least 3 suggestions. 25

Exclusive Access: Blackbullion • Blackbullion offers free courses, resources and online tools to help you manage your finances. Sign up using the access code ARK 2019 to access content exclusive to Ark students and alumni! • https: //www. moneyreadyforuni. com/ 26

Exit Ticket: 1. What is the difference between a loan and a grant? (1): a) Loans need to be paid back, grants do not b) Grants vary in amount depending on household income, loans are the same for everyone c) Loans are available to everyone, grants are very rare 2. Which of these might affect the cost of student accommodation (1) a) The city the accommodation is in b) The amount of people you are sharing with c) The number of bathrooms d) All of the above d) Loans are always awarded based on household income, grants are always based on grades 27

Exit Ticket: 1. What is the difference between a loan and a grant? (1): a) Loans need to be paid back, grants do not b) Grants vary in amount depending on household income, loans are the same for everyone c) Loans are available to everyone, grants are very rare 2. Which of these might affect the cost of student accommodation: a) The city the accommodation is in b) The amount of people you are sharing with c) The number of bathrooms d) All of the above d) Loans are always awarded based on household income, grants are always based on grades 28