Student survival guide: Taking care of the bottom line

For students paying their own way through university or polytechnic, the cost of gaining a qualification can become a crippling liability.

With annual tuition fees ranging from about $3000 to $9000, and other expenses on top, it is not uncommon for degree students to have debts in the mid-to-high five figures by the time they start looking for work.

Fees are only part of the equation. Costs such as textbooks, materials and equipment vary from course to course, but all add to the bill. Massey University reckons a student doing eight papers should allow an average $800 for books alone.

Outside medicine, dentistry and veterinary studies, one of the most costly courses is Auckland University's bachelor of visual arts, a four-year course also available through Manukau Institute of Technology. Tuition for the full programme tops $16,000, plus about $4000 for course essentials.

At Auckland University of Technology, there is a fee of $3550 a year or $1750 a semester, regardless of the subject. However, hotel and restaurant students can also expect set-up costs of about $1000 in their first year, for knives, uniforms and books.

And for bachelor of nursing students, whose three-year course includes working in the field in areas such as midwifery, there is the added expense of a reliable car, as well as a cellphone and pager. Recommended textbooks for the full programme cost a further $1400.

Living away from home? Full board at a hall of residence costs $165 to $200 a week in Auckland and $168 to $174 at Waikato. For flatting, a basic $185 to $215 a week is usual, says Unitec student union's Dylan Keating.

It does not end there. Add items such as insurance, travel, clothes, toiletries, entertainment and vehicle expenses and the hole in the wallet gets bigger.

To help students manage their money, tertiary institutions provide a variety of financial services, from budgeting advice and planning to help with applying for grants and interest-free loans.

Raewyn Harris, manager of student financial services at AUT, runs free budgeting courses which aim to make students self-reliant. Most of the people she sees are the 10 per cent of AUT's student body who cannot cope with day-to-day living expenses. Many barely have enough money for rent, food and transport - there is nothing left for socialising or entertainment.

Part of the problem is that many first-year students are financially naive, she says. They should get proper advice so they understand what they will face financially.

Money tips

* Prepare a budget worksheet listing income and expenditure, and update it whenever circumstances change. Get advice if you need help.

* Use automatic payments for regular accounts. Pay other bills when due.

* Buy essential textbooks first and share expensive books. On-campus bookshops sell second-hand texts, but make sure they are the right edition.

* Be aware of student discounts, loans and grants. Ask for information.

* Check what your degree or subject fee covers. AUT includes student association membership and student services. Massey does not.

* Do not forget insurance - at least third party for your car and for personal items such as computers, cameras and musical equipment essential to courses.

* Use credit cards for emergencies only. Put money aside for a rainy day.

* Buy groceries at the supermarket, not the dairy. Plan meals ahead and adjust menus for supermarket specials.

* Cooking is cheaper than takeaways.

* Think about taking on part-time work, but leave time for study and recreation. Inquire early for holiday jobs.