{"id":2423,"date":"2016-09-27T09:00:04","date_gmt":"2016-09-27T07:00:04","guid":{"rendered":"http:\/\/www.erasmusmagazine.nl\/en\/?p=59066"},"modified":"2025-12-19T11:22:09","modified_gmt":"2025-12-19T10:22:09","slug":"students-housekeeping-books-reasonably-well-balanced","status":"publish","type":"post","link":"https:\/\/www.erasmusmagazine.nl\/en\/2016\/09\/27\/students-housekeeping-books-reasonably-well-balanced\/","title":{"rendered":"Students\u2019 housekeeping books reasonably well balanced"},"content":{"rendered":"
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Monthly costs for students who live away from home, according to Nibud (left) and the guess by first-year students of the Erasmus University Rotterdam (right)<\/span><\/p>

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Room rent rates and tuition fees are rising, standard student grants have been abolished and students are increasingly being forced to borrow money. Even so, they generally manage to stay on top of their finances, an EM survey shows.<\/p>\n

Students are greatest victim of purchasing power decrease in 2017.\u201d This was students\u2019 interest group ISO\u2019s headline at the end of August. According to ISO\u2019s purchasing power calculations, students will be hit the hardest, partially due to rising tuition fees and the abolition of the standard student grant. Given these circumstances, EM\u2018s editors found themselves wondering \u2013 do first-year students know what they are getting into, and have they made sufficient financial arrangements to keep their heads above water? In order to help us find out, 138 students completed a survey on their situation and their expectations.<\/p>\n

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Monthly costs for students who live away from home, according to Nibud (left) and the guess by first-year students of the Erasmus University Rotterdam (right)<\/span><\/p>

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Let\u2019s start with a reassurance. Generally speaking, students have a pretty good idea of the costs associated with being a student, although they tend to be just a little too optimistic. For instance, students expect their monthly public transport expenses which are not covered by their public transport chip cards to amount to \u20ac31, although the National Institute for Family Finance Information (Nibud) puts the figure at \u20ac55 per month.<\/p>\n

A further discrepancy between wishful thinking (the amount first-year students believe they will spend each month) and reality (the monthly average calculated by Nibud) can be observed in the money students expect to spend on health insurance premiums. Nibud believes the monthly average to be \u20ac97, whereas the students expect only \u20ac57.<\/p>\n

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\n\t\n\n<\/svg>\n<\/span>\n\tImage by:<\/span>\n\n\t\t\t\n\t\t\t\t\t\t\tSanne van der Most<\/a>\t\t\t\t\t<\/span>\n\t<\/p>\n<\/figcaption><\/figure><\/div>\t

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Eva Lange (17, first-year Law)
\n<\/strong>\u201cI\u2019m currently borrowing money from DUO. Some of this will later be repaid by my parents, as this proved to be the cheapest solution at the current interest rate. Of course, I will have run up quite a debt by the time I graduate, but I mainly regard that as a solid investment. I will pay off my debt once I get a job. I still live with my parents, which is obviously much cheaper. However, I\u2019m also doing it because I want to check in this first year whether I actually like my degree course. If so, I definitely intend to move out next year, which will obviously cost more. In order to earn a bit on the side, I work at a tapas restaurant. I\u2019m not earning a lot of money, but I\u2019m having a great time! I spend most of my money on holidays, clothes and my studies. Other than that, I don\u2019t spend too much. If I were ever to run out of money, I\u2019d cut down on clothes first. I generally buy sensibly, but every now and then I\u2019ll buy something I don\u2019t need at all, such as an extra pair of trousers. In addition, I\u2019m saving for my tuition fees and for the room I\u2019ll start renting next year. I think it\u2019s only sensible to plan ahead.\u201d<\/p>\n\n\t<\/div>\n

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Conversely, students believe certain expenses to be greater than Nibud\u2019s calculations would seem to indicate. For instance, students expect to pay an average monthly rent of \u20ac376, even though Nibud puts the figure at \u20ac366. Furthermore, they believe to spend \u20ac98 per month on textbooks and other things they require for their studies, although Nibud claims \u20ac57 per month is more likely. The same thing is true for clothes and shoes: students count on a monthly expense of \u20ac73, whereas Nibud puts the number at \u20ac47. According to Nibud spokesperson Annemarie Koop, many students believe that they have their finances straighter than their peers who do not attend university. \u201cBut they know less about insurance policies. They don\u2019t know exactly what concepts such as deductibles, premiums and terms and conditions mean.\u201d<\/p>\n

Overestimated expenses <\/h3>

Parents who are having difficulty letting their children move into the world will be comforted by the knowledge that their kids have a pretty good idea of their expected expenses. Clearly, these parents do not allow their children to move out without giving them some small measure of preparation. For instance, a very significant majority of parents indicated that they had prepared their children for living independently, according to a study conducted this summer by the \u201cWijzer in geldzaken\u201d (More Sensible with Money) Platform, which was established by the Ministry of Financial Affairs. The study surveyed parents whose children are about to move out or are planning to do so in order to attend uni. The study showed that three out of five parents had sat their children down in order to identify expected income and expenses with them.<\/p>\n

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\n\t\n\n<\/svg>\n<\/span>\n\tImage by:<\/span>\n\n\t\t\t\n\t\t\t\t\t\t\tSanne van der Most<\/a>\t\t\t\t\t<\/span>\n\t<\/p>\n<\/figcaption><\/figure><\/div>\t

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Pim Spaanjaars (18, first-year Econometrics)
\n<\/strong>\u201cI live with two other people in an apartment in Capelle, which costs me 450 euros per month. I\u2019m borrowing the maximum amount of one thousand euros per month from DUO. From now on, that will be deposited into my bank account each month. Because I\u2019ve only just turned eighteen, I won\u2019t receive any money for the first few months, which kind of sucks. I think that amount will be more than enough for me to make ends meet, although nearly half of it will obviously go towards my rent. Of course, my expenses will occasionally exceed my loan. For that reason, I definitely intend to get a side job, such as maths and physics tutoring. My parents have told me that as long as things continue to go well, they will not pay any of my expenses. They feel it\u2019s my own responsibility, and that I must make my own arrangements. However, should I really get into difficulty, they will help me out. That\u2019s a reassuring thought. Once I complete my degree, I will obviously have a fairly significant debt of some 48 thousand euros, plus interest. That\u2019s not great, but that\u2019s life. Thankfully, econometrics graduates have pretty decent job prospects, so I\u2019m not too worried.\u201d<\/p>\n\n\t<\/div>\n

For its part, EM\u2019s survey also showed that parents are actively involved in their children\u2019s finances. Ninety-two students reported discussing their finances with their parents. One hundred and seven students said they receive financial support from their parents, the average monthly contribution being \u20ac529. This includes payments towards the students\u2019 tuition fees, health insurance premiums, textbooks and rent.<\/p>\n

Financial tips <\/h3>
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Percentage of parents that give financial support to their children, according to national Nibud research (left) and research by EM among first-year students at Erasmus University (right).<\/span><\/p>

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According to ISO\u2019s purchasing power calculations, it is mainly rent rates and tuition fees which are straining students\u2019 budgets, since both go up each year. The Minister of Education has admitted as much, but is of the opinion that students must simply take out bigger loans. \u201cSo basically, you\u2019re saddling students with debts that will be huge by the time they graduate,\u201d said ISO President Jan Sinnige.\u00a0\u201cSurely that can\u2019t be a solution?\u201d<\/p>\n

Therefore, ISO hopes that Minister of Education Jet Bussemaker will unveil new measures to make things easier for students on the day of the King\u2019s annual speech (20 September). \u201cFor instance, ensure that tuition fees don\u2019t go up after students embark on their degrees, so that they know what they will be expected to pay down the track,\u201d Sinnige advocates.<\/p>\n

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Houda Boulakhrif (18, first-year business administration student)<\/strong>
\n\u201cMy parents live in Rotterdam and I\u2019m enjoying living with them. Why spend a lot of money on an expensive room when I can live comfortably at home? Especially during my first year. I will take out a student loan in the future. Not that my parents can\u2019t afford to pay my fees, because they\u2019re also paying for my clothes. I must pay my tuition fees and my textbooks myself, though. Fortunately, they have saved money for me all my life, which will see me through my first year at the very least. It\u2019s a nice buffer. As for what happens after that, I\u2019ll cross that bridge when I find it. My parents taught me well how to deal with money. I was given some money of my own at a fairly young age, which gave me reasonably sensible spending habits. They taught me that if I really want to have something, I must save money for it and prioritise, which may involve refraining from doing certain things. But they also taught me that it\u2019s sometimes good to pay a little extra for high-quality products. I spend most of my money on going out for dinner or drinks. Every day, I\u2019ll bring home-made sandwiches with me, only to pop into SPAR to get myself a nice bun. Perhaps that\u2019s not the smartest thing to do, but I do love it!\u201d<\/p>\n\n\t<\/div>\n

And what about those students who have just embarked on their degrees? What would Sinnige advise them to do? \u201cMake sure that you take a good look at all the plans offered by DUO, at the very least. For instance, apply for a supplementary grant, even if you think you\u2019- re not eligible for one. For you may not be eligible at present, but terms and conditions do change,\u201d ISO\u2019s President suggested. \u201cAlso take a look at the extra allowances you may be eligible for. To do so, check out the websites hosted by the government, the municipal authorities and the universities.\u201d<\/p>\n

Get your expenses straight <\/h3>

EM\u2019s study showed that if EUR students should fall on hard times financially, nearly half of respondents intend to spend less money on clothes and going out. In addition, they intend to resolve potential or actual overdrafts by getting a job, working more hours, or borrowing more money. Twenty-nine respondents indicated that they expected the former strategy to prevent them from incurring debts. Students who have a student loan expect to owe on average well over \u20ac20,000 after obtaining their degrees.<\/p>\n\n\t

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\n\t\t\u201cAt least once in your time at uni, draw up a financial overview. Not only will it help you get a better understanding of what you are spending each month, but it will tell you what income is missing.\u201d\n\t<\/blockquote>\n\n\t\t\t
\n\t\t\t\t\t\t\t\"\"\n\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\tAnnemarie Koop, spokesperson Nibud\n\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/figcaption>\n\t<\/figure>\n\t\t<\/div>\n\t<\/div>\n

In closing, Nibud spokesperson Annemarie Koop provided one more tip on how to limit the damage. \u201cAt least once in your time at uni, draw up a financial overview. Not only will it help you get a better understanding of what you are spending each month, but it will tell you what income is missing. For instance, many students forget to apply for a health insurance allowance, even though the application process is very straightforward.\u201d She also recommends checking all your bank statements once in a while to get an idea of what withdrawals are being made. \u201cIf you do that, you may find that you are still paying membership fees for a club in your parents\u2019 village, even though you haven\u2019t attended a club event for years. Going through all these individual withdrawals will really help you make useful decisions. If you\u2019re still short on cash, it will help you determine what to cut down on.\u201d<\/p>\n\n\t

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