Many students who come to the UK have saved hard in order to pay for their chosen course of studies or they may have secured a grant or a loan to come and study in the UK. Some might even be expecting to work part-time in the UK to meet any extra costs if their visas allow them to do this. In the majority of cases international students find that they have to live within a budget, and carefully watch how much they spend once their courses fees have been paid for. While you are living in Southampton you will need to be able to manage your money and budget if necessary.
These activities will help you prepare for managing your financial affairs while you are living in the UK.
Activity 1: Finding out about British banks
One of the first things you will need to do when you arrive in Southampton is to arrange for your money to be safely deposited in a bank. You may find that there is a bewildering choice of banks all offering to look after your money for you when you walk down a British High Street. It can take some time to find out which ones provide accounts suitable for international students. This activity wuill introduce you to some of the biggest UK banks offering services for international students.
Instruction
Decide which of these names represent real banks in the UK and which are fictitious (not real). Drag and drop them into the correct box. Use an internet search engine to help you if necessary. Then read the feedback to find out more about UK banks.
These banks are real High Street banks and represent some of the biggest in the UK: NatWest; HSBC; Barclays; Lloyds TSB
These banks are fictitious (not real) banks: Coffers UK; Pennywise Bank; Fleecers Mackintosh; Mint Imperial BC
Here are some links to the big four banks in the UK so that you can compare what they offer international students:
Which one do you think offers the best service for international students?
Activity 2: British banking quiz
What else do you need to know about banks in the UK? Use this quick quiz to discover some important facts about British banking and to familiarise yourself with some essential language for dealing with banks.
Instruction
Read the statements below and decide whether you think they are true or false. Select either the true or false button and then read the feedback. Open the help section if you would like to review some key vocabulary first.
Here are explanations of some key terms connected with banking:
Cashpoint card: A plastic card with a magnetic strip or chip, used to withdraw money from a cashpoint.
Current account: A bank account designed for regular financial transactions, with little or no interest paid. A cheque book and cashpoint card are normally supplied with this account.
Deposit account: A bank account normally used for saving money, with interest paid on the balance, and often with restrictions on withdrawals. Sometimes referred to as a 'Savings account'. No chequebook is usually available with this account.
PIN: A four digit code or "numerical password" used to verify your identity when using a cashpoint, debit, or credit card. This should not be disclosed to anybody - even bank employees.
Pound sterling: The main unit of currency in the UK, one pound consisting of one hundred pence.
Banking hours are generally from 9.30am to 4.30pm Monday to Friday and a few larger banks are also open on Saturday.
True
These opening hours include lunch time. Notice that banks close earlier than most shops in the UK.
Cheque books are available for both current accounts and deposit accounts.
False
Cheque books are normally only available with current accounts. Although your money will earn more interest in a deposit or savings accounts you will probably not be able to write cheques yourself. You may be issued with a deposit book or a cash card for such accounts.
A plastic card for accessing your account outside normal banking hours using a cash machine is often referred to as a cashpoint card in the UK.
True
This is also sometimes simply called a cash card and enables you to withdraw money from your account from a cashpoint (sometimes referred to as a 'hole in the wall') located outside a bank or in a frequented public place such as a shopping centre, railway station etc.
Some cashpoint machines charge users for their service (around £1.50 per withdrawal) if the user's bank is not among the ones listed. You should be notified of this extra cost before you confirm your withdrawal from the machine.
For security reasons, some kinds of cards can only be used with a PIN, which you will need to memorise.
True
Cash cards or debit cards often require you to enter a personal identification number (PIN) into a machine before you are able to withdraw money or pay for goods using them. It is important that you do not reveal this number to anyone else otherwise the security of your account may be compromised.
The following paper bank notes are in use for pound sterling: £100, £75, £50, £20, £10, £5.
False
Denominations of £50, £20, £10, £5 are in circulation. There are no £100 or £75 bank notes.
To find out more about the famous Britons featured on the four banknotes look at the information on the Bank of England website: Bank of England Banknotes
The following coins for £ (pounds) and p (pence) are in circulation: £2, £1, 50p, 20p, 10p, 5p, 2p, 1p.
True
To see images of the eight coins (and four banknotes) in circulation in the UK look at: British currency
To open a bank account in the UK you will only need to show your passport.
False
You will probably to take a number of documents with you when you go to a bank to open an account. These normally include:
• your passport
• a letter of acceptance or similar from your university or college
• evidence of your address in the UK (e.g. a tenancy agreement or the agreement you have signed for your room in a hall of residence)
A letter of reference from your bank in your home country may also be useful.
You may find the cost of living in the UK to be higher than in your home country. If this is the case managing your daily living expenses and meeting your bills may present a challenge. You can prepare for this by familiarising yourself with the extra costs that might be involved and find out what other costs you might need to be ready for.
Instruction
Think about each of the following questions about living costs to do with private accommodation and select an answer from the drop down list. Then read the feedback. Open the help section first if you would like to review some key vocabulary.
Here are some explanations of key terms connected with living in private accommodation:
Council Tax: A tax paid to local government in the UK, calculated on the basis of the value of property and number of inhabitants. Students are not considered inhabitants for the purposes of this calculation and therefore are not normally required to pay this tax.
Landlord: Someone who grants use of a house or apartment, and who charges a fee, known as rent. If this person is female, she is known as a landlady.
Tenant: Someone granted use of a house or apartment, and who pays a fee, known as rent.
Utility bills: Local charges for services such as running water, gas, electricity, telephone. These are normally paid every three to four months. In the case of rented accommodation, some charges are paid by the landlord and embedded into the rent.
If you decide to live in private accommodation in the UK, as well as paying your monthly rental you may well have to pay your share of bills connected with the provision of other services. Which of these items do you think you may NOT have to pay for?
Water service
Although there is a local charge for the water service that you receive it may be paid by the landlord of the property rather than by you, the tenant.
In many cases, tenants will usually receive utility bills for electricity, gas and possibly telephone (landline) every three months. These bills must be paid promptly otherwise you risk having the service cut off. If you alone are responsible for paying the bills you can also choose to pay them by direct debit from your bank account.
If you choose to buy a new or second-hand television to watch while you are living in Britain, it is a legal requirement that you buy a television licence. An annual licence for a colour television currently costs £145 and if you are found to be without one the fine can be up to £1000.
Many students choose to take out insurance policies when they come to the UK. Insuring your personal belongings, particularly expensive items such as laptop computer, hi-fi etc against theft or damage is a wise precaution. Insurance of this type is often referred to as contents insurance. How much do you think it might cost you to insure your personal belongings for a year?
from £18 a year
This is likely to be at the lower end of what contents insurance may cost you. You may find it easier to arrange insurance before you leave your home country. For more information on contents insurance look at 'student possessions' on the webpage of an insurance provider often used by British students:
Other types of insurance that international students may take out when they come to study in the UK include medical insurance (especially if they are staying for less than six months) and motor vehicle insurance (compulsory if you own a car or motor bike).
Do international students have to pay Council Tax?
Sometimes
If you live in a university or college hall of residence you will not have to pay Council Tax. Similarly, if you live in private rented accommodation with other students and which is classified as 'exempt', you will not have to pay. Some properties are not exempt and if one of the occupants is not classified as a student, there may be a Council Tax bill to pay.
