Adverts for investing in cryptocurrency are EVERYWHERE – I can’t count the number I have seen at bus stops, in tube stations, and plastered all over the internet. I have plenty of friends who are interested in it, and some who have even invested in it. Cryptocurrency has really taken off over the last few years. But what is it, and what should you consider if you want to invest in it?
Cryptocurrency is a digital currency, such as Bitcoin and Ethereum, which are traded as an asset – like trading gold or trading stocks. However, because cryptocurrency is not linked to anything physical, the price is completely determined by the mood and trends of other people who are trading it. This makes it an extremely volatile and high risk investment. In the past, the values of cryptocurrency have gone up and down wildly! The value of Bitcoin has historically gone up as much as 65% in one day, and often falls just as dramatically.
Are all cryptocurrencies legitimate? Definitely not! There are plenty of scam cryptocurrencies out there, and sometimes these scams are backed by well-known celebrities (or appear to be backed by them!). It is so important to do your research to find out if a particular cryptocurrency is legitimate. If it does turn out to be a scam, your money is not protected by the FSCS (like some other investment types are) so you could lose it all.
There’s also an environmental aspect to trading cryptocurrency. It has a huge carbon footprint because of the way it is ‘mined’ using massive computers. According to Forex, Bitcoin alone is thought to emit 57 million tonnes of CO2 each year – and you would need to plant 284 million trees a year to offset it! That’s potentially a huge contribution to climate change, and another important consideration if you are looking to invest in it.
If this blog post has piqued your interest to find out more about cryptocurrency, here are some resources you can try:
Sarah Chitson King’s Student Money Mentor Part of Money & Housing Advice
The King’s Student Money Mentors blog shares our students’ personal experiences and thoughts on money-related topics. Any reference, opinions or recommendations on a particular company/brand are only the views of the student(s) who wrote the blog post. King’s College London, the Money & Housing Advice service and the Money Mentor project do not share the views in the blogs nor endorse any of the companies mentioned. Readers should conduct their own research before using any companies mentioned in our blog posts.
For many people, loans are an essential part of their finances at some point in their life. Loans can be part of how we finance big purchases such as buying a house; many of you will have already taken out a student loan to cover the costs of your tuition and living expenses whilst at uni. That’s why King’s Money Mentors are here to make sure you know your APR from your FCA. In this blog post, we’ll aim to teach you about Student Loan Repayments, Credit Cards, Mortgages, and Loan Sharks, as well as how you can find some help if you do find yourself in debt.
Whilst debit cards pay using money directly from your own bank account, credit cards allow users to buy things on credit (i.e. borrowing money with the aim of repaying it later).
An ‘interest rate’ is the amount of interest that is charged as a proportion of the amount of money that you have borrowed.
An APR (Annual Percentage Rate) tells you the total cost of borrowing over a year as a percentage of the amount borrowed.
If you repay the money you borrowed on your card by the end of your billing period, you can avoid being charged interest.
An advantage of using credit cards is something known as ‘buyer protection’ – this means that if you pay for something between £100 and £30,000 on a credit card, and the company doesn’t deliver, by law (Section 75 of the Consumer Credit Act 1974) your credit card provider is required to give you a full refund, even if the company you bought from has gone out of business or won’t pay refund you itself.
However, credit cards may look like easy access money, but you might be putting yourself at risk of borrowing money you find yourself unable to repay, resulting in your level of debt rising.
If you’re unable to repay, there can be some scary consequences, for example damaging your credit score (you can see our last blog post for more on this topic), incurring additional charges, and accruing a large amount of interest, all of which will make it more difficult to repay the debt.
Interest payments alone can make it difficult to save and stop you from being able to afford large purchases in the future.
It is difficult to clear your debt just by keeping up with the minimum repayments, so make sure you’re putting aside enough money to pay off your debt as much as you can. If you’re struggling with debt contact the Money & Housing Advice Service who can put you in contact with Specialist Debt Adviser who can help you to get back on track.
Also make sure to check out @Blackbullion and follow the link below to read an article on Credit Cards and a handy guide on Paying Off Debt.
We all can’t wait for the day we get the keys to our own place! However, making such a big financial commitment can be overwhelming. While it may seem a something for your future self to tackle, it can’t hurt to get ahead and know what you should consider before planning your dream home!
Very few people buy a property upfront. Most people will put down a sum of money and take out something called a ‘mortgage’ to cover the rest. A mortgage is a type of loan specially made to help you purchase a property, where you borrow money from a bank or building society. The interest rate will either be fixed or variable, or sometimes a combination, and usually lasts for 3-30 years.
The amount you need to borrow will depend on things such as the size of your deposit and the purchase price of the property you want (which has its own long list of considerations!). Generally speaking, the bigger your deposit, the lower the interest rate attached to the mortgage.
However, the amount of your mortgage that you can afford depends on your yearly income and other financial commitments you may have. Most lenders will limit the amount you can borrow to just under 5 times your yearly wage.
Don’t forget the deposit and mortgage repayments are just some of the expenses that go along with buying a property! You will have to consider additional costs like property tax/stamp duty, survey fees, land registry and more.
Worried? Confused? Click the link below and check Blackbullion’s ‘Mortgages 101’ article to see what questions you need to ask yourself before jumping onto the property ladder!
Student loan repayments begin the April after you complete your studies (whether you graduate or not), provided you are earning over the current repayment threshold. If you are earning under the threshold you will not repay until you are earning above the repayment threshold. Likewise, if your income falls below this threshold, your loan repayments will stop.
So how does your employment type affect your loan repayments?
If you are self-employed, the loan repayments will be calculated each year alongside your other taxes when you complete a tax return.
If you are employed but not self-employed, Student Finance England will take the money directly out of your paycheck each month.
When you begin to repay depends on which Plan you are on. 4 plans exist (Plan 1, Plan 2, Plan 4 and Postgraduate Loan).
Plan 2 applies for all English and Welsh students who have begun an undergraduate course anywhere in the UK (and EU students who have begun an undergraduate course in England and Wales) from September 2012 onwards, currently Plan 2 repayments only begin after your income is over £524 a week, over £2274 a month, or over £27295 a year. You will repay 9% of the amount you earn over the threshold per month.
Postgraduate Loan Plans apply to all English and Welsh students who took out a Postgraduate Master’s Loan on/after August 1 2016, all English and Welsh students who took out a Postgraduate Doctoral Loan on/after August 1 2018, or all EU students who started any postgraduate course on/after August 1 2016. Postgraduate Loan Repayments only begin after your income is over £403 a week, over £1750 a month, or over £21000 a year. You will repay 6% of the amount you earn over the threshold per month.
Example Plan 2 Student loan
Here’s an example of repaying student loans on Plan 2:
Your annual income is £28,800 and you are paid a regular monthly wage. This means that each month your income is £2,400 (£28,800 divided by 12). This is over the Plan 2 monthly threshold of £2,214.
Your income is £186 over the threshold (£2,400 minus £2,214).This means that you will pay back £16 (9% of £186) each month.
Example Postgraduate
And here’s an example of Postgraduate Loan Plan repayments:
Your annual income is £28,800 and you are paid a regular monthly wage. This means that each month your income is £2,400 (£28,800 divided by 12). This is over the Postgraduate Loan monthly threshold of £1,750.
Your income is £650 over the threshold (£2,400 minus £1,750). You will pay back £39 (6% of £650) each month.
Got both?
If you are on both plans:
You will pay back £39 (6% of £650) to your Postgraduate Loan and £16 (9% of £186) to your Plan 2 loan. So your total monthly repayment will be £55.
Plan 2 and Postgraduate Loans are cancelled 30 years after graduation. Making extra repayments may save you money otherwise spent on interest if you are likely to pay off the loan in full anyway before the 30 years are up (i.e. with a high income). You should only do this if you are certain that it will be beneficial for you, as you cannot get this money refunded.
The phrase ‘Loan Shark’ is an informal, commonly used term for illegal money lenders. These people are not approved by the FCA (Financial Conduct Authority, the people who regulate financial services to protect your money), and they may even threaten violence if you cannot pay them back.
You can help stop dangerous loan sharks. A governmental body known as the ‘England Illegal Money Lending Team’ says it’s recently seen more people turn to loan sharks, as a result of the COVID-19 pandemic. To fight back, it’s launched an app that makes it easier to report illegal lenders – and to find help if you’ve fallen victim to one. It also has tips on how to spot a loan shark and a tool to find alternative legitimate lenders.
You can speak in confidence to the Illegal Money Lending Hotline on the telephone number 0300 555 2222.
Alternatively, you can also email the Illegal Money Lending Team at reportaloanshark@stoploansharks.gov.uk or text loan shark and your message to 60003.
Struggling?
Effects of financial hardship on mental health and where to get help:
Is the thought of money a source of anxiety for you? If it is, you’re not alone! In 2021, Save the Student’s annual survey found that 65% of participants’ mental health suffered due to money troubles. Many students worry about whether they’ll have enough money for food, to pay bills, and this sadly often affects their wellbeing as a result.
This has ripple effects on student life too. Many students are unable to focus on their studies and start to take on multiple part-time jobs to cover the costs, affecting their ability to manage their time effectively.
As scary as this sounds, there can be light at the end of the tunnel! If you find yourself in a situation like this, there are numerous resources and services that can help you.
Here at King’s, you can book an online appointment with the Counselling and Mental Health Team, they provide a free and confidential service for students seeking mental health support.
The King’s Money & Housing Advice Service are a team of specialist advisers able to help you with your financial situation whether it’s from accessing funding and challenging student finance decisions to dealing with accommodation and other debts. Submit an online enquriry form with the team for initial advice and where appropriate an appointment to fully explore your situation. King’s also offers a range of hardship funds and bursaries that you can apply for if you’re facing financial hardship. Just remember, you’re not alone, take the first step and ask for help.
If you are feeling overwhelmed by debt you can also find free impartial advice from Citizens Advice at Debt and money – Citizens Advice or National Debtline. The Money & Housing Advice Service has a partnership with Citizen’s Advice Westminster to provide free and impartial debt advice and they can usually see you within a week, you can use the online enquiry form to request a referral.
Shivam Chotai King’s Student Money Mentor Part of Money & Housing Advice
The King’s Student Money Mentors blog shares our students’ personal experiences and thoughts on money-related topics. Any reference, opinions or recommendations on a particular company/brand are only the views of the student(s) who wrote the blog post. King’s College London, the Money & Housing Advice service and the Money Mentor project do not share the views in the blogs nor endorse any of the companies mentioned. Readers should conduct their own research before using any companies mentioned in our blog posts.
We all know that apps can be extremely useful in day-to-day life, especially when it comes to dealing with tasks such as managing money. However, with so many options to choose from, it can be difficult to know which ones to use – I know I have certainly struggled with this! So in order to make all of our lives easier, I have done the research to tell you which money-related apps you could consider downloading and using. In this blog, I will be categorising the apps into four different categories:
Budgeting apps can be very helpful when managing money. They have saved me a lot of time and stress, and it has helped me to see exactly where my money is going. There are many different apps to help with this. From my research, here are the top five best budgeting apps for students:
Emma
Overview: An app that connects all your bank accounts in a single place, sync budgets, track spending and help identify subscriptions that can be cancelled. You can also add and track cryptocurrencies and pensions through this app.
Advantages:
Easy to sign up and navigate
In-depth analysis and budget
Highlights wasteful subscriptions
Disadvantages:
No savings category
Interface can be a bit too simple
Not all banks are supported
Cost:
The basic version of Emma is free, but premium subscription can be up to £9.99 per month.
Money Dashboard
Overview: It organises all your spendings to generate a clear dashboard that clearly outlines how your money is being spent.
Advantages:
Free to download and use
Free access to premium features
Available on desktop
Disadvantages:
No clear instructions on how to use
Unable to see pending transactions which is available on other apps
Cost:
Free.
Squirrel
Overview: Helps you to split your income/money wisely. It also has a savings feature to put aside certain amount of money.
Advantages:
Easy to use
Visualises data well
Helps budget for costs well
Disadvantages:
Have to pay to use
Cost:
£3.99 per month but a free 3-month trial is available.
Splitwise
Overview: an app designed to make the process of sharing/dividing expenses with other people easier. Tracks and organises expenses, and enables people to add money & pay other people through the app.
Cashback is a great way to save money when buying products online. From my research, I have found that these are the top apps and websites to receive the latest cashback offers:
TopCashback
Overview: People receive a cashback when they buy products from featured retailers through their website.
Advantages:
Variety of options available for how to receive cash back rewards
No registration or membership fee
Lots of partner stores
Disadvantages:
Payouts can be slow
Cost:
Basic version is free
Premium membership is £5 per month.
Quidco
Overview: offers cashback when people purchase from select online retailers. Quidco Clicksnap also offers discount on certain groceries.
Advantages:
Variety of retailers
Sign Up bonus
Earn rewards in store
Disadvantages:
Inconsistent payout times
Cost:
Basic version is free
Premium version is £5 per year.
Swagbucks
Overview: people can earn points through select online purchases, which can be turned into cash/vouchers.
On a student budget, saving money is always a win. I tend to find shopping online a lot easier and am always on the lookout for some good deals! These are the top apps that can save you time from searching the internet for random discounts codes:
Trolley
Overview: Allows people to compare the price of products in shops and supermarkets to find the cheapest price for groceries.
Advantages:
Good coverage of supermarkets
Easy to set up and use
Disadvantages:
Have to search up items separately rather than able to upload complete shopping list
Cost:
Free.
Latest Deals
Overview: helps people compare prices of products across a wide range of categories. Also shares freebies.
Investing is becoming more popular as an alternative stream of income. Currently, there are a variety of options available and to make it easy for you, I have chosen a couple of apps that are a good place for beginning investors to start.
Moneybox
Overview: allows people to invest in ‘global companies like Google, Apple and Netflix via simple tracker funds. With three starting options (cautious, balanced, adventurous), the app works by rounding up people’s purchase and investing in their spare change.
Advantages:
Simple way to get into investing for beginners
Good range of investment account-types
Investment is protected by the Financial Services Compensation Scheme (FSCS)
Disadvantages:
High account fees for the return
Limited investment selection
Cost:
No fees for saving in a moneybox saving account
Minimum investment £1
Monthly fee £1
Platform Fee 0.45%, charged monthly.
Plum
Overview: people can invest in sectors such as technology and ESG, and the app shows indications of the risk levels of each fund. People can invest from £1, and can split or withdraw their deposits as they like.
Advantages:
Automatic saving
Able to invest from as little as £1
Easy to set up
FCA regulated
Disadvantages:
Money in primary pocket is not protected by Financial Services Compensation Scheme (FSCS)
Investing charges are expensive if only investing small amounts
Have to pay for some features that other apps offer for free
Cost:
Minimum investment £1
Monthly fee £1
Platform fee 0.15%.
Nutmeg
Overview: allows people to set their goal and choose their investment style for investment. The investment team chooses investments based on their preferences.
Advantages:
Competitive fees
Heavily regulated
No need for prior knowledge of investing
Variety of risk levels to choose for to invest
Disadvantages:
Unable to choose individual stocks
Initial lump sum investment is high
Cost:
Minimum investment is £500 to open an ISA, General investment and Pension Fund or £100 for lifetime ISA or junior ISA.
We hope you have found this blog post useful and have a clearer picture of some money-related apps. Please feel free to ask us if you have any questions or queries regarding the apps in the comment section below!
Hania Hussain King’s Student Money Mentor Part of Money & Housing Advice
We only shared a handful of apps that some students may find useful in this blog. You should research further into the apps before using/purchasing them for more information!
The King’s Student Money Mentors blog shares our students’ personal experiences and thoughts on money-related topics. Any reference, opinions or recommendations on a particular company/brand are only the views of the student(s) who wrote the blog post. King’s College London, the Money & Housing Advice service and the Money Mentor project do not share the views in the blogs nor endorse any of the companies mentioned. Readers should conduct their own research before using any companies mentioned in our blog posts.
