The cost of cash points:

This feature seeks to address the cost of laziness…. Ok… so maybe its not laziness, perhaps convenience would be a better title.

You'll notice them in bars, clubs, student unions and newsagents and its little wonder they are so profitable…. That's right. The ‘unofficial' cash point that charges £1.50 per transaction….this is where the student loan really goes.

I am amazed at the laziness of some students that keep these cash points in business, when surely, if you were to find £1.50 in the street would you pick it up? If someone said you could have a free cappuccino you would accept it? And so why do students (whom are already familiar with poverty) willingly fritter it away?

Would it not be easier to carry cash? having cash in your pocket means that you only spend what you needed rather than wasting £1.50 on the transaction of withdrawing money or indeed incurring a charge on spending less than the minimum cash transaction of £5, which after conducting research in 4 newsagents and convenience stores within a 2 mile radius of my flat can be around 70p.

All of this charging soon mounts up, and got me thinking:

Cash Withdrawal fee from unofficial cashpoints; £1.50 per time (once a week x 52 weeks)	= £78.00
Money wasted on minimum purchases (ie when you have to spend over £5 in order to pay on your card) £6 per week (once a week x 52 weeks)	= £312.00
Card transaction fees spending under £5, 50p per time (once a week x 52 weeks)	= £26.00
Total wasted money in a year:	£416.00

That's fantastic, so over a 3 year degree we estimate that a large proportion of your student debt will be because you preferred convenience! 

This is of course not considering the cost of the money you are spending with overdraft or credit card interest as well as credit card cash withdrawal charges…. And it goes on and go, so get smart with your money and carry cash….. its estimated to save you just over £400 a year!!!

For more money saving tips why not review our other features or Money Saving Expert







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