Raising the funds

Helen Basini, 25, is worried about the mountain of student debt hanging over her head. She left Birmingham University in 1997 with a degree in sports science and went on a four-month overland truck expedition from Cairo to Kathmandu, which cost £3,000.

The following year, she won a scholarship for a doctorate in sports psychology at De Montfort University in Bedford. It gave her a living allowance of £500 a month, which she supplemented with teaching work.

Halfway through the course, she flew to Mexico to participate on The Big Bus Ride, a five-month journey from North America to Argentina on a double-decker bus, in aid of the charity War Child. She visited many War Child projects during the trip and decided to work for charity rather than continue her studies.

She began doing voluntary work a couple of days week for War Child, and took temping jobs in between. However, she found it difficult to make ends meet.

She says: "I earned £70-£80 a day temping. My rent was £90 a week and I was constantly stressed about money. I used to take three buses to get to War Child's office in Kentish Town because it was cheaper than getting the train."

But her determination has paid off and earlier this year she was employed as War Child's schools liaison officer, earning £16,000 a year. Her role involves going into schools around the country to raise awareness of how global wars affect children. She has also become involved in a compilation of short stories for children, in aid of the charity.

To save on rent, she has moved back into her parents' home in Surbiton. She has a £4,500 student loan, but does not need to start making repayments until she earns at least £19,800. She is worried, however, that she has no savings or pension. "I'd like to buy my own home one day. My parents have investments to help me put down a deposit and I've considered buying with friends. I'd also like to know more about stakeholder pensions."

She has paid off her £600 overdraft and tries to clear her Barclaycard each month. She believes she could start saving £200 a month now that she is no longer paying rent, and put her spare cash into a Halifax current account.

"Although I have more money in my pocket, I've had to sacrifice my independence. No one wants to live at home when they're 25. What's the best way to start saving for the future?"

OUR FINANCIAL EXPERT'S VIEW

Ray Boulger of Charcol and Jim Boyle of Berry, Birch and Noble financial advisers say: Helen should build up a deposit to buy her first home and clear her student debt before starting a pension. The Halifax account is not the most efficient savings vehicle, as the interest rate is pitiful. Instead, she should start putting her £200 a month into a cash Isa, which will pay interest tax free.