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Leeds is the most cost-effective place in Britain for students to study, new research has revealed.

The Royal Bank of Scotland has just released its Student Living Index 2007 - a league table which ranks Britain's major university towns based on cost of living.

The results show that students in Leeds should be in the best financial position - as the city offers a relatively low cost of living together with the third-highest weekly earnings from part-time work.

Bad news for students in Nottingham though - it has been found to be the least cost-effective place to live.

In real terms, this means that during one academic year, the average Leeds student could be a whopping £2,238 better off.

The study also shows that some 40 per cent of students will work part-time during their academic terms.

At present, popular student jobs are in restaurants, clothes shops and bars. More unusual ways of making ends meet include stage management and lifeguarding.

Katie Cassidy, head of student banking at Royal Bank of Scotland, said: "Our research shows that many students are taking a positive, proactive approach to managing finances by taking on part-time work."

However, she continued: "The crucial element in managing finances effectively while studying is careful budgeting.

"While it might be tempting to take the 'ostrich approach' and bury your head in the sand, it's better to avoid problems in the first place by taking a careful look at potential incomings versus outgoings."

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