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How to manage your money as a student
When you’re doing your degree, money management can feel near impossible. From buying textbooks to paying for field trips, it’s easy to fall behind or start relying on your overdraft.
Luckily, things don’t need to be complicated, even if you’re not getting any pocket money. In this guide, we’ve covered a few top tips to help you handle living costs and the rest while you’re studying for your degree.
The state of student living costs
Across the country, students face financial challenges. While much depends on individual circumstances, similar pressures are shared by most students.
Student Finance England provide financial support to UK students. Undergraduates can apply for a Tuition Fee Loan and a Maintenance Loan, with the latter intended to help cover living costs like accommodation fees, food, drinks and other essential supplies.
Tuition fees charged by universities cover course content plus access to university and support services – but leave other critical costs down to the students. These include travel costs, personal gadgets, and memberships, plus much more. So, for students, it’s worth knowing a thing or two about effective money management.
3 top tips for managing your money as a student
Know the costs
Firstly, if you’re still in the application stage, it’s worth doing your research to find out if you could save money by choosing one university over another. In 2023, one report found that the average student rent has increased by 14.6%, yet maintenance loans fail to match the same rate of inflation.
Head online and check specific accommodation prices at your selected universities. From there, you could create a spreadsheet to help you compare at a glance. While costs shouldn’t be the main reason you choose a university, working things out now could leave you better prepared.
Build your credit score
Next, even though it’s unlikely that you’ll need a credit card at university, you should still make every effort to maintain a good credit score. When you graduate, your credit score could determine your ability to secure finance or get accepted for a mortgage on your first home.
Students should remember that frequently changing home address could negatively affect their credit score. So, when it comes to your utilities and accounts, it’s best to use your family home address. One of the most foolproof strategies to manage your finances as a student is to avoid updating official documents after each house move.
Set a budget
Lastly, being able to control your spending is key to getting through uni. Temptation from all angles means that you’ll probably spend a bit more than planned from time to time, but it’s worth sticking to a budget as closely as possible.
Working part-time while you study could help to ease the pressure, especially if you like going out at the weekend. If so, you should aim to work for a flexible employer or sign a zero-hours contract and work when it suits you. As for your budget, don’t forget to consider essential supplies like food, textbooks and clothes.
With a budget in mind – and an idea of your expected earnings – you can approach each new month with an organised mindset.