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MONEY

How to survive in Sweden on a student budget

They say that January in Sweden is the "poorest" month of the year, when everybody is pressed for cash. So how do you get by on a student budget in the best of times and the worst of times?

How to survive in Sweden on a student budget

Maybe you went overboard with Christmas presents. Perhaps you visited home for the holidays. Maybe New Year's Eve was simply too much fun.

For whatever the reason, all reports say that January is a tough month when it comes to cash in Sweden.  So what to do?

Adjusting to life in a new town, meeting new friends and finding your way around both an unknown campus and a confusing curriculum can be bewildering enough, without also having to face the strained economy that student life offers. 

Here's your survival guide to having fun on a tight budget.

Coffee:

Giving up that twice-daily frappa-latte-cino can be a hard blow for any student, but the price tag on lattes from fancy cafés will eat away your student funds quicker than you can say “extra shot of hazelnut, please".

The best solution to this is bringing a thermos flask to class, but as you aren’t likely to remember to do this, there’s luckily another cup of joe that won’t force you to dip into your savings: student cafés exist within twenty metres of most lecture halls in the country, selling coffee for ten kronor or less.

If you don’t happen to be nearby one of these, Pressbyrån and7-Eleven are also happy to provide some of the most economical offerings in town, and usually have cards so that loyal customers can get a coffee free after purchasing several.

Sure, their watery brew may not be the same taste sensation you'll find at high-class city cafés, but it’ll do the trick to keep the caffeine levels in your blood constant, and keep you purring alertly throughout all your most boring lectures.

Partying:

After a rough week spent ploughing through books in the library, you could be excused for wanting to let off some steam and go out for a drink and perhaps a bit of a dance.

Unfortunately, Sweden’s high alcohol prices and expensive cover charges at trendy night clubs may make this a difficult venture.

The obvious solution is to stick to student pubs, of which universities usually have plenty to offer. There’s more than one for every night of the week, selling thirsty students beer at less than half the price of other spots in town.

Besides, visiting your nearest student watering hole is a great way to meet new like-minded friends and fellow students.

Food:

Food is a major cost that is difficult to avoid altogether, but it can be whittled down.

Tried-and-true tips for students with limited resources, energy and kitchen space include classics such as living on a diet of ramen noodles and macaroni, as well as the more inventive suggestion of frying your fish sticks in the toaster.

But if your culinary expectations aim a wee bit higher, don’t despair! There may be cost cuts to be had all the same.

If your kitchen space allows, get your biggest pot out of the cupboard, buy an armload of Tupperware containers, and get to work making lunch boxes to bring to class for the next term or so. Not eating out for lunch will save tons of money.

As for a dinner option that’s both unbeatably cheap and sociable at the same time, try mooching off the aforementioned student pubs, which often offer a free meal some night of the week, if you show up early enough.

For instance, classic Stockholm University hangout Gula Villan provides hungry and weary students with a steaming bowl of veggie soup every Wednesday. Find out what's going on at your school too!

Transport:

A bicycle is a student's best friend – it's true. And you can always sell it when you move again, so it can definitely be worthwhile.

Find a cheap used bike on eBay style website blocket.se, or go to the police’s auctions, where lost bicycles are sold for next to nothing.

If you aren’t staying in the country for long, buying a bike may seem like an unnecessary investment. Another option for students in larger cities is zipping around on a rented bike from City Bikes. For just 250 kronor you can borrow bikes throughout the city as often as you desire, between April and October.

Otherwise, public transportation is a reasonably cheap way to get around town, and usually there are special student prices. See more details about handy resources and transport here.

Books:

Course literature is a never-ending source of frustration for students old and new. The many required books are often hard to come by, as two hundred course mates race to empty the shelves on the first day of class, and always horridly expensive.

However, there are a number of solutions that’ll save you both the chaos and the costs. The key words to remember are organisation and foresight.

Your local library will have a few copies of the required books, but never enough for the whole class, so to avoid the stampede, get in there early.

Insider tip: it’s often possible to reserve books in advance on library websites.

Other cheap reading options are borrowing from friends and photocopying necessary pages, or buying second hand – keep an eye out for a bulletin board near your lecture halls, where former students try to sell their used books for a low price.

Clothing:

Say goodbye to the high street – from now on, buy all your clothes second hand. Vintage shopping is dirt cheap, lots of fun, and has the added advantage of currently being highly fashionable.

Check out examples of Sweden’s second-hand scene at chain stores Stadsmissionen and Myrorna. The chains exist in most large cities, so look up the nearest one near you.

Besides, maybe your new life as a student can involve a slimmed-down wardrobe? You can always try hosting a clothing swap as well – get together with friends and switch clothes so everyone can find something they like!

Now that your new outfit is assembled, gather all items in your closet that you no longer want, and either give them away to charity or sell them for a tidy profit to be spent at the nearest student pub!

Do you have other tips for managing on a tight budget in Sweden? Comment below!

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MONEY

How safe is your money in a Swedish bank account?

What protections are there for your money if your bank goes bust? We had a look at the rules in Sweden.

How safe is your money in a Swedish bank account?

US bank Silicon Valley Bank (SVB), a favourite bank to US tech firms and a well-known lender to start-ups, went bust on Friday morning after being hit by a classic bank run, as its clients sought to withdraw $42bn in a single day, a quarter of its deposits. Signature Bank, another American bank, was shut down on Sunday, after suffering a similar bank run on the back of the SVB collapse.

So, what would happen if your Swedish bank went bust? Should you rush to withdraw all your money if your bank looks to be in a precarious situation? Here’s the situation in Sweden.

Deposit guarantee

You may not have realised this when you opened your Swedish bank account, but most bank accounts in Sweden are covered by the government’s insättningsgaranti or deposit guarantee. Simply put, this guarantee means that, if your bank goes bust, the state will foot the bill and refund your money.

Most Swedish banks are signed up to the deposit guarantee, but you can check whether your bank is included on this list.

How much money does it cover?

In 2023, the deposit guarantee is 1,050,000 kronor per person per bank, so you will get all of your savings back if they are under this figure.

Note that this is per bank, so if you have accounts in multiple banks you have a separate deposit guarantee for each bank, meaning your deposit guarantee could cover millions of kronor if you spread it out over more than one bank.

If you have a joint account, you’ll each have an individual deposit guarantee, so a couple sharing an account would be able to get 2,100,000 kronor of savings back if their bank collapsed.

It’s also possible to apply for an extra supplementary amount of up to five million kronor for deposits “coupled to certain life events,” the Swedish National Debt Office explains on its website, if you’ve sold a property, received a damages payout from a court case, or an insurance payout, for example. This can’t be applied for until you’re in a situation where a payout is due. 

The guarantee applies to all private individuals (including children), as well as companies and other so-called “legal individuals”, such as the estates of deceased people, and it applies independently of any debts or loans you have with the bank in question.

Banks, municipalities, regions and government authorities are not covered by the guarantee.

How is it funded?

You may be wondering how the state is able to guarantee billions of kronor in the event that a Swedish bank fails. The answer is simple: the deposit guarantee is funded through fees charged to banks and other financial institutes which are then held in a fund.

The Financial Supervisory Authority has the power to decide when the guarantee should come into effect, and it also applies if the Swedish National Debt Office places a bank or other financial institute into administration.

Why does it exist?

The guarantee was originally introduced in the autumn of 1992, which was a turbulent time for the Swedish economy.

In order to stabilise the economy, the government introduced a general state bank guarantee, which in 1996 became a deposit guarantee covering 250,000 kronor per person per bank.

The idea behind the guarantee is to discourage people from withdrawing their money from a bank in crisis, thereby contributing to more stability in the financial system, as customers know they will get their savings back even if the bank eventually goes bust.

During the financial crisis of 2008, the guarantee was increased to 500,000 kronor. 

Since 2010, new EU rules have meant that the deposit guarantee should cover an amount equal to 100,000 euros, with the amount in local currency adjusted every fifth year to match this number.

The last adjustment was in 2021, where the guarantee was raised from 950,000 kronor to 1,050,000 kronor.

How many times have payouts been made?

Payouts have been made three times since the deposit guarantee was introduced in 1992. The first two payouts were in 2006, when two financial institutes, Custodia AB and Almänna Kapital went bust.

In Custodia AB’s case, 1,282 affected customers were reimbursed with a combined 134.2 million kronor, and 287 of Almänna Kapital AB’s customers received a combined total of 40.9 million kronor.

The third payout was in 2010, when Danish bank Capinordic went bust. As this was a Danish bank with a branch in Sweden, the Swedish deposit fund paid the difference between the Swedish guarantee, which was 500,000 kronor at that time, and the Danish guarantee, which was 50,000 euros. This meant that 825 customers received a combined payout of 10.6 million Swedish kronor.

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