Essential tips for university students

Mastering Student Budgeting

Now that you’ve packed your young adults off to University and they’ve survived the trials of Freshers’ Week, it’s important to ensure they’re prepared for other challenges University will bring – finances! The following is a handy guide designed to enable them to survive the next three or four years financially:

“Dear Student

Starting university is such an exciting chapter in life, however, it also marks the start of financial independence and responsibility for many students. The way in which you manage your finances will make or break your time at university, so it is crucial that you get on top of this to ensure a smooth academic journey and set the foundation for your future financial stability. Here we have set out some essential budgeting tips for those embarking on the journey…

Create a Budget

As boring as it might seem, creating a budget will allow you to get your head around your own financial position and limitations. Start by listing all your sources of income, including student loans, scholarships, part-time work etc. Next, itemise your expected monthly expenses. Remember that you’ll likely be paying for things that you haven’t had to before so it’s important to make sure you’ve considered everything you’ll need to cover, such as tuition fees, rent, utilities, groceries, etc.  Your student loan will need to last you the entire term and so you need to allocate the money wisely. If spreadsheets aren’t your thing, try using budgeting apps like Money Dashboard and Cleo. The App HyperJar may also be worth looking at, as not only is it a free tool for budgeting and payments, but also has a function for group-shared expenses, if you and your housemates split bills.

Take advantage of student discounts

Being a student comes with numerous perks, such as access to student discounts. Many retailers, restaurants, cinemas, and public transport offer special discounts to students. Make sure to carry your student ID with you and get into the habit of enquiring about student discounts wherever you go. These savings can add up significantly over time and if you don’t ask, you don’t get!

Cook your meals and meal prep

Eating out regularly can quickly drain your finances. Instead, invest in cooking utensils, learn some basic recipes, and start preparing your meals. Cooking at home is not only cost-effective but also healthier. Consider meal prepping on weekends to save time and money during busy academic weeks. Look for student discounts at grocery stores to further reduce your food expenses.

Buy used textbooks

Instead of purchasing brand new copies of textbooks, explore options for buying or renting them instead. As soon as you get your book list, it’s worth checking as early as possible if your university library has copies of required textbooks that you can borrow.  There are also websites that facilitate year-long book rentals such as www.VitalSource.com that will loan you an electronic version of textbooks for up to a year, for up to 80% less than buying new.

Part-Time Employment

If your schedule allows, consider finding a part-time job in your university town. Some universities even offer on-campus employment opportunities. You will, however, need to establish a good balance between this and your studies. As the term progresses, it can become increasingly tempting to pick up an extra shift whilst forgoing attending lectures so it’s important to keep the priority on study. 

Emergency Fund

Establishing an emergency fund is an essential aspect of responsible budgeting. Set aside a portion of your income or any unexpected windfalls into a separate savings account.  This can help you cover unexpected expenses without resorting to loans or credit cards. It may be worth allocating this to a separate pot that you won’t be tempted to dip into on a night out! You’ll thank yourself later.

Student Bank Accounts

Many banks in the UK offer special student bank accounts with perks such as interest-free overdrafts. These accounts are designed to cater to the unique financial needs of students, so shop around for an account that offers the most competitive and favourable terms for your situation.

If you have done all the above and still find yourself struggling, don't hesitate to seek advice from your university's financial aid office. They can provide valuable guidance and resources to help you manage your money more effectively. Remember that responsible budgeting not only helps you navigate your student years successfully but also builds a strong foundation for your post-graduation life and, most importantly, allows you to have the most fun!”