Top ten tips on how to survive financially as a student

A THIRD of students have considered dropping out of university because of money worries, with half taking on expensive debts to get by, The Scotsman revealed this week.

So as Scotland's big universities gear up for freshers' week, Gavin Littlejohn, chief executive of Moneydashboard.com, offers his top tips on effective student budgeting.

1 Set a budget and stick to it

Work out how much money you have each month from your loan, parents and any part-time jobs. From this total subtract your regular outgoings such as fees, rent, power bills, mobile phone and travel. Use the remainder to allocate spending on lifestyle items such as clothes and nights out. Once you know your budget, you can spend without guilt or worries, but keep an eye on your cash. With online banking, it's quicker and simpler than ever before to keep track of things. If you combine it with a free online personal finance tool you can get a real picture of your finances any point in time.

2 loans

Your student loan might feel like a noose around your neck, but it's by far the most efficient way to borrow money and fund your student life. So it makes sense to borrow as much as you need through your student loan and to avoid running up a huge bank overdraft or credit card debt instead. If you do find yourself with additional debts, seek advice before they get out of control - the Citizens Advice Bureau, the Student Loan Authority and even your bank might be able to help.

3 Bank accounts

When choosing your bank account, visit comparison sites such as moneysupermarket.com and moneyfacts.co.uk. Look out for special offers and free overdraft facilities. Remember that the free overdraft on many student accounts reduces each year, so plan that into your budget and make sure your banking remains free. Also, check your balances regularly and know when standing orders and direct debits leave your account.

4 Credit Cards

Put simply, avoid having one. It's easy to run up a debt and with average interest rates at more than 18 per cent that debt can easily spiral out of control.

5 Nights out Make sure your fun goes further - look out for student specials in restaurants and bars, search for discount vouchers online and make the most of pre-theatre deals and launch promotions on websites such as 5pm.co.uk. Cinema membership deals can offer excellent value for a night out, as does the 2-for-1 deal on Wednesdays for those with an Orange mobile. If you're going clubbing turn up before the entry fee is charged and sign up for free guest passes where possible.

6 Food

Make a packed lunch instead of buying pricey sandwiches and ditch ready meals and fast food too. Instead, get yourself into the kitchen and if you're not sure what or how to cook, then sites such as studentcook.co.uk and studentrecipes.com might help. For ingredients visit local markets, discount stores like Aldi or Lidl and remember that the big supermarkets often have great prices on their own brand produce. If you can cook in bulk and freeze your food, you save time too and will avoid spending a fortune when you're too rushed to cook.

7 Shopping

Don't always head to the high street when you need something new. Browse around charity shops, your local paper, eBay and sites such as gumtree.com, which are packed with secondhand bargains. And don't forget freecycle.org, the site where people give away goods they no longer need. When it comes to books, ask those in the year ahead if they'd like to sell any course books, check out secondhand books shops or visit sites such as usedbooksearch.co.uk.

8 Travel

Make the best of bus passes and season ticket deals for your regular journeys. Alternatively, consider investing in a bicycle and keeping fit at the same time. Make the most of student discounts and railcards - some banks offer them free when you open an account.

9 Mobile Phones

Do your homework and shop around when your mobile phone contract is up for renewal. Don't upgrade your phone until it's free to do so and always ask yourself if you really need the latest version with all its extras. For example, the new 4G iPhone costs almost GBP200 if you take out a GBP35 a month package with Orange. But if you choose the perfectly acceptable 3GS instead, your iPhone is free.

10 Security

Keep your valuables out of sight, particularly when you have visitors. Check your locks work and always lock doors and windows when you go out. If you're staying in halls of residence you might find contents insurance is part of the accommodation fee. Otherwise, search the comparison sites for the best deals for contents insurance. Be aware that you may need to take out additional cover for your laptop, which isn't included in most basic policies.