Gap year : Costs and funding

 

Costs

In June 2009, The Independent wrote: ‘It is estimated that young travellers will have to fork out between £3,000 and £4,000 to cover the average cost of a gap year, but careful preparation is the key to curbing expenditure.’

Try to prioritise what you want to get out of your gap year. This will help you to put the most important things at the top of your list of budgeting needs and eliminate non-essentials.

Costs may include:

• payments to volunteering organisations or gap providers - research which organisations provide the best value;
• living expenses;
• travel costs - research whether flights are cheaper on certain days or at certain times of the year and ensure you have a return ticket or enough funds to buy one;
• visas - make sure you have the correct visa and that it is granted before you leave;
• insurance - make sure you have added on a ‘sports’ package if you intend to do any sports or extreme activities;
• passport renewal - make sure your passport is valid for the period required by the country you are visiting (check at the country’s embassy or the Foreign and Commonwealth Office (FCO)). For more information about renewing your passport, including fees, go to Directgov - Passports.
• ongoing payments, such as mortgage or loan repayments that have to be covered while you are away.

Try to factor some flexibility into your plans to allow for contingencies - opportunities may arise that you don’t want to miss.

Funding

Personal resources

Use your initiative and creativity to think up original ideas for raising money. Fundraising activities can range from car boot sales to events such as quiz nights.

• Sell belongings you no longer need online - be careful not to part with all your beloved possessions!
• Network to find contacts who may be able to help with accommodation or put you in touch with providers in the areas you intend to work in or visit. 
• Contact companies for sponsorship from companies - offer them incentives such as printing their logo on your travel t-shirt.
• Earn some money working while you plan your time away – anything from a temporary job to baby-sitting or dog-walking for friends and family will help.

 Grants, trusts and charitable bodies

• Use the Directory of Grant Making Trusts (available in university and public libraries) to search for grants from funding bodies, charities and grant making trusts.
• For more options, try the Directory of Social Change Grants for Individuals and the Prince's Trust.
• Watch the deadlines when applying for grants.

Loans

With all loans, whether from financial institutions or from your family:

• make sure you understand exactly when you will have to pay back the money;
• think about when you will be in a position to make repayments and how much you will realistically be able to afford.
• if you are taking time out during your degree course and will be returning to study rather than to work, think particularly hard about taking on financial commitments, especially if you already have student debts to repay.

Types of loan available include:

• Training loans, also known as Career Development Loans (CDLs) - available to young people who are considering doing a training course in conjunction with their gap year activities. For more information about training loans, call the National Career Development Loan helpline at 0800 585 505, or go to Professional and Career Development Loans.
• Personal/bank loans - concentrate on loans aimed at students, which have lower interest rates and longer term repayment plans.
• Loans from family or friends - be very clear about whether or not interest will be charged, the deadline for repayment, and any conditions on how the money must be spent.

Money planner

Your money planner

There are no two ways about it, going around the world is expensive, but most people don’t actually realise how much they spend at home. Provided by GapYear.com .