Here are some tips to navigate the financial world during your time at uni:
- Get a student bank account ASAP – you could get perks such as free fees. Make sure to do your research as not all student bank accounts are the same. Please note that some banks charge for a credit card, and others for ATM use so be mindful of the details.
- Try to avoid setting up an overdraft. If you absolutely need one, make sure that it has 0% interest! Remember: Interest-free student overdrafts are only free while you’re a student. If you still have these debts once you finish uni they will then incur interest. Be proactive and have a plan to be able to pay them before you finish university.
- Beware of ‘buy now, pay later’ schemes. You are eventually going to need to pay this money back, so only do this if absolutely needed. The bottom line is: budget for your purchases, save the money first, then buy as you like.
- It can be helpful to set up separate bank accounts for each of your essentials (rent/bills/groceries) so that you can visually see what is leftover and not be short of paying for the necessities.
- If you are working part time or multiple jobs, make sure you are using the correct tax code when completing your tax code declaration with IRD. Lots of students just tick the generic ‘M’ for their employment, however you may be ‘MSL’ if you have a student loan and are earning between 24k – 70k, or ‘SB SL’ if you have more than one job and a student loan. Check that you are using the right tax code on the IRD website: ird.govt.nz If your tax code is incorrect, you risk having to pay money back to IRD at the end of the financial year!
Book an appointment to talk with one of our friendly advocates if you’re needing help financially.