As students beginning your studies this week, you’ll need to deal with financial challenges and be careful with money management throughout the academic year – whether in a shared apartment or dorms, paying for housing, food, tuition, and expenses related to studies and social activities.
Here are some golden rules that could ease your financial situation on your path to a degree:
Low Pay is Better Than No Pay
Don’t be overly picky when choosing a workplace: remember that every job is respectable, and alongside the modest salary you might earn, your workplace saves you the monthly National Insurance payment (as your place of work will take of this for you) and maintains continuity in your pension savings. Found a workplace that also provides meals? You’ve gained even more. Save your selectivity for a full-time position after completing your degree.
Scholarships
Conduct a comprehensive inquiry into which available scholarships might suit you. Don’t assume you’re not eligible for any scholarship. Many organizations offer scholarships with flexible eligibility criteria that might fit your situation, and many scholarships provide added value beyond the money itself – such as various benefits, personal satisfaction, and a résumé boost showing community involvement, which will look good on your CV after graduation.
Protect Your Savings
Worked and saved before starting your studies? It’s recommended not to use your savings for regular living expenses. Keep the money for the future, for a vacation, or to help with a soft landing after completing your degree.
Living in a Shared Apartment
Don’t be shy about setting expectations and clarifying with roommates how they usually manage shared purchases, bill payments, and related expenses. Find out in advance if you’re expected to participate in additional payments such as regular purchases of consumer goods and cleaning supplies that serve all roommates.
When Moving Apartments, Ensure Account Resets
Verify with roommates and the landlord that the roommate you’re replacing has settled all their debts. Record the water and electricity meter readings when moving into the apartment, and when the next bills arrive, make sure you’re not required to pay for a period before your residency. Remember that even if it turns out the previous tenant has an unsettled debt, it’s not your responsibility or obligation to handle it and cover the debt.
National Insurance Payment
Students are required to pay National Insurance fees. Registration as students is done by the academic institution, and the amount of unemployment insurance and health insurance fees for students is 163 ILS per month. For those working alongside studies, your employer will pay for you. Remember that if you travel abroad for any period, you still need to continue paying.
Discounts and Benefits
Always check if you’re eligible for benefits or discounts on municipal tax payments, marriage registration, daycare and family daycare payments (if you’re parents), and more.
Those who completed undergraduate studies are entitled to one credit point for one year in the tax year following graduation or the year after. The value of a credit point is 2,904 ILS per year. For professions requiring internship, you can choose whether to use the benefit in the tax year after completing the degree or in the tax year after completing the internship, according to conditions published on the Tax Authority website.
Paamonim invites all students to register for a course in smart financial management online or to a course on invesments, to receive tools for personal budget management and knowledge in pension matters, salary slips, rights, and investments.
