ACTIVITY 18 Spend, spend, spend

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FINANCES




           ACTIVITY 18
           Spend, spend, spend
           SUGGESTED TIME: 30 minutes
           RESOURCES: Handout 18a / Tutor’s notes 18a




           Give each group an accommodation brief for either a hall
           of residence or a student flat/house.

           Ask them to read it and think about their moving-in costs using Handout 18a,
           “Alex role play brief” as a guide.
           • What will you need to take with you?
           • Will you need to make any special purchases? How much will they cost?
           Ask them to list the spending they would make and then to decide which are needs
           and which are wants.
           Now ask students to list everything they would buy on a day-to-day basis – again,
           ask them to mark whether they are needs or wants.
           Tutor’s notes 18a provide details about the grants which are available to students.
           In a whole group, feed back the findings.
           This could lead to an interesting discussion on which items are essential and which
           are luxuries.




FOR MORE INFORMATION...



www.direct.gov.uk/studentfinance                                     Tutor’s resource materials for Years 12–13 75
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           HANDOUT 18A
           Accommodation briefs
           Page 1 of 1


           Alex role play brief
           Alex is a new student living in a hall of residence outside London for the first year at a
           cost of £930 per term. In addition, she has to pay a deposit of £150 at the beginning of
           the first term.
           This will be refunded at the end of the summer term if there has been no damage to hall
           property.
           Alex’s parents’ residual income has been assessed at £40,000 pa. Based on this, Alex
           will get a new maintenance grant worth around £711* and a student loan for living costs
           of £4,595*.
           There is no upfront cost for tuition fees. Instead Alex can take out a loan for tuition fees.
           She will only have to start repaying this loan when she’s earning over £15,000.
           Alex has saved £750 from holiday jobs.
           Alex does not have a car or TV.
           Hall of residence
           This hall of residence provides accommodation in individual study bedrooms, with
           shared bathroom, kitchen, dining and lounge facilities. Breakfast is provided daily and
           dinner on weekday evenings. Lunch is not provided.
           Students are required to prepare their own meals at weekends. Additional facilities
           include the provision and laundering of bed linen and cleaning of rooms as well. Hall
           fees, paid at the beginning of each term, cover the inclusive cost of the facilities
           provided. A deposit will need to be paid in advance to cover any damage or loss of
           property associated with the hall.
           Student flat/house
           This student flat/house requires sharing the responsibilities for running the flat or house
           with other students. Students are responsible for paying the bills associated with the
           flat/house, cleaning the accommodation as well as their own clothes etc, and feeding
           themselves. The bills arrive separately and at different times. Some things need to be
           paid for immediately, whereas others are billed at quarterly intervals. Rent is collected a
           month in advance.
           A deposit will need to be paid in advance to cover any damage or loss of property
           associated with the flat/house. The landlord supplies an inventory of items in the flat/
           house at the beginning of the tenancy. This inventory should be checked carefully
           before signing it to make sure that it is accurate.

           *The figures used in this activity are based on those for 2009/10 and are subject to change.
                                                                         Tutor’s resource materials for Years 12–13 76
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           TUTOR’S NOTES 18A
           Accommodation briefs
           Page 1 of 1


           Alex role play brief
           Current situation
           Student loans and grants are currently paid in three instalments – each one at the start
           of term.
           The examples of tuition fee and loan payments shown in the Alex role play brief are
           for illustration only. The actual pattern of payments is split 33%, 33%, 34% which
           gives slightly different figures to those shown.



                                          Help with living costs

 Household income          £25,000           £40,000           £50,020                 £50,778

 Maintenance grant         £2,906            £711              £50                     Nil

 Student loan
 for maintenance           £3,497            £4,595            £4,925                  £4,950

 Total each year           £6,403            £5,306            £4,975                  £4,950

 Help from universities Many colleges and universities offer non-repayable bursaries –
 /colleges              contact your preferred institution to see what they are offering!



           * These figures are for students living away from home but not in London. A higher
             rate of student loan for maintenance is payable for students living away from home
             in London and a lower rate applies to students living at home.




                                                                      Tutor’s resource materials for Years 12–13 77

				
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