BUDGET BUSTERS

Higher Education and finance Develop financial know-how Aims Higher Education and finance Develop financial know-how Decisions and budgets Let’s talk about money Before playing Budget Busters we’ll discuss the costs of Higher Education and the incomes you can receive while studying.

GAME Higher or lower? Let’s see how well you know the cost of some things associated with Higher Education as well as the cost of everyday things. This activity can be done in pairs/groups/individuals. The winner(s) are those who guess closest to the correct price most often. The winner(s) receive a the prize card of £10 from the Budget Boss pack of cards.

Higher or lower? £40 £0.50 £30 £6,000 £10 £100 £0.80 £3.50 £2.50 £147 Text book Student accommodation Washing powder Term bus pass Baked beans £4,500* £3.50 £40 £135 £0.50 £30 £6,000 £10 £100 £0.80 What word – just one word – comes into your head when you hear “student finance”? Lightbulb 80 tea bags TV Licence Max Maintenance Loan Hourly minimum wage for apprentices in 1st year* £3.50 A typical textbook Example of one year of student accommodation in halls – Catered* around £6,500 Washing powder (22 washes) Term bus pass (3 months) One can of baked beans Energy saving light bulb 80 tea bags Colour TV licence (one year) Maximum Maintenance Loan for one year in England (outside London, 2017-18) Minimum hourly wage for apprentices (at any age*) in the first year * After the first year the standard National Minimum Wage applies. £2.50 £147 £8,430 £3.50* £2.90 £3.00 £170 £6,350 £3.30

Snap thought! “student finance”? Let’s talk about it What word – just one word – comes into your head when you hear… Let’s talk about it “student finance”? Where do you get information on student finance? Are these reliable sources? Who could you ask for information? The discussion could go in various directions. Try to ensure that overall the students get two key points: 1. For up-to-date reliable information they should visit the government website as a start point. 2. Debates on the value for money of Higher Education will always be based on opinion. But it should be remembered that on financial terms you will only ever repay if you have benefited from studying in Higher Education. Often it’s the non-financial benefits which people cite as the most valuable from having studied at a higher level, such as: meeting new people; travel; time to think about what you want to do; discover new interests and talents; etc. For the most up-to-date information a good starting point is the government's student finance website: https://www.gov.uk/student-finance

Full-time study

For full-time study (does not apply to apprenticeships). Two main costs Tuition fees For full-time study (does not apply to apprenticeships). Living costs Rent, food, bills, clothes, travel costs, socialising, gym, sports, etc. It is important to stress that both are provided for in the form of loans from the government meaning that finance should NOT be a barrier to studying in Higher Education.

Tuition fees – Question 1 What is the maximum tuition fee a university or college can charge per year? £5,500 £9,250 £15,350 £7,750 £12,800 £20,150 For the most up-to-date information see: https://www.gov.uk/student-finance

Tuition fees – Question 2 How much tuition fee do you pay straight away? 0% 15% 50% 100% 10% 30% 80% Repayments will be discussed later but suffice to say that no repayments will ever be made until after you finish your studies and after you start financially benefiting from your studies which means earning over £25,000 per year.

Living costs – Maintenance Loan: maximum amount each year This is the maximum you can receive in your bank account to cover living costs. Living at home while you study Living away from home outside London Living away from home and in London £7,592 £8,944 £11,672

Living costs – Maximum Maintenance Loan depends on your household income Home Elsewhere London £25,000 and under £7,529 £8,944 £11,672 £30,000 £6,499 £7,825 £10,387 £35,000 £5,901 £7,220 £9,771 £40,000 £5,303 £6,615 £9,155 £45,000 £4,705 £6,009 £8,539 £50,000 £4,107 £5,404 £7,924 £55,000 £3,509 £4,799 £7,308 £60,000 £3,124 £4,193 £6,692 Figures beneath the maximum are yet to be released as of 21/02/2019 There may be many questions here relating to what constitutes a ‘household’ i.e. partners of parents, etc. There are other factors taken into consideration for extra financial help i.e. disabilities; dependants, etc. To avoid giving inaccurate advice it is best to direct to https://www.gov.uk/apply-for-student-finance/household-income

Repayment of tuition fees and Maintenance Loans You will start repaying… The April after you finish your course When you’re earning over £25,725 per year (from April 2019) The government will write-off any unpaid balance after 30 years Most helpful may be examples of what you would repay per month on a given yearly wage. For example: £26,000 per year you would repay £7.50 per month. At £30,000 per year you would repay £37.50 per month.

How to find out how much you can apply for… Use the Student Finance England calculator to see the size of loan you can apply for: https://www.gov.uk/student-finance-calculator

Higher Level and Degree Apprenticeships The minimum income is £3.70 per hour in your first year. However, MOST employers pay more, especially for Higher Level or Degree Apprenticeships. After the first year you must be paid at least the standard national minimum wage for your age. https://www.gov. uk/national- minimum- wage-rates An apprenticeship is a job. Typically you work four days and study one day in a week. Your employer pays the costs of your study and training. For apprenticeships this first year minimum wage applies to all ages. After the first year the standard National Minimum Wages apply.

So, how much could you get per week? Full-time student example (age 18+) Higher level apprentice example (age 18+) Maximum Maintenance Loan £8,944 Divided by 52 weeks = £172 per week. A typical annual salary, £16,000 Divided by 52 weeks (minus tax/NI) = £273 per week. Did you know? Even if you qualify you don’t have to apply for the full Maintenance Loan. A good conversation at this point could be the number of weeks you would need your Maintenance Loan if you returned home during the holidays; substantially fewer than 52 weeks. Another good activity is to use the online search tool for apprenticeships to see the numbers of apprenticeships in your area. Don’t forget to use the filter to see Higher Level or Degree Apprenticeships. For examples of salaries: https://www.findapprenticeship. service.gov.uk/apprenticeshipsearch

Budget Busters Game! 1 2 3 4 5 Decide on a route: full-time study or apprentice? Complete the income part of the budget planner. Use the previous slide to help. Use the employment cards to decide on your employment choice. Complete the outgoings part. Working as a group, or on your own, make decisions based on 7 key areas of outgoings. Don’t forget to factor in the surprise income and outgoings! See the instructions for the game included in the Budget Boss pack.

Top tips and info If in full-time study Open a student bank account Take some money with you. You normally get your Maintenance Loan 3 – 5 days after you enroll. Open a student bank account Different banks have different offers, e.g. free 16 – 25 railcard. Many also give you an interest free overdraft. Part-time work It is advised that students work a maximum of 10 – 12 hours per week. Plan and budget! Maintenance Loans are paid in three instalments during the year. Apprentice salaries may be paid monthly. So you need to budget to make it last! Make the most of student discounts The National Union of Students (NUS) / TOTUM card gives you discounts in many shops, restaurants, and cinemas. There are often reductions in travel costs for young people.

Information Inspired by: Cash Course by Sheffield Hallam University with support from Aim Higher. Further information and help https://www.ucas.com/ucas/undergraduate/finance-and- support/budget-calculator www.gov.uk/studentfinancesteps www.gohigherwestyorks.ac.uk https://www.theguardian.com/money/2016/jun/18/control- spending-finances-budgeting-app-smartphone https://www.gov.uk/student-finance https://www.ucas.com/ucas/undergraduate/finance-and- support/managing-money/student-budgeting-tips https://www.gov.uk/apprenticeships-guide https://studentfinance.campaign.gov.uk/ http://www.studentloanrepayment.co.uk/portal/page? pageid=93,3866794&dad=portal&schema=PORTAL