University and money

Money management at University

It was A-level results this week with over 800000 students collecting their results with some fantastic achievements being seen.

Not everyone will go on to University but those that are a massive 82% of applicants have got their first choice.

Going to university is a brilliant experience and for most the first time people have lived away from home and this is great for a sense of freedom but also means that it’s possibly the first time where the students are responsible for their own money management.

It’s a long (long) time since I went to University but I can remember stressing massively about money. Now some students won’t stress but it’s a good idea to be mindful of your money situation.

I remember in my first lecture the lecturer said get all your partying and sex out of your system in the first year – was this good advice…. Hmmm.

As it can be daunting but also so exciting we have put some helpful tips together;

1. Create a Budget (and Stick to It!)

This doesn’t have to be complex. Start by listing all your sources of income, such as student loans, part-time job earnings, scholarships, or financial help from family. Next, outline your regular expenses: tuition fees, rent, food, transportation, utilities, books, and entertainment.

Plan when you will get your money too. With a student loan you will get it once a term and needs to last you – so be mindful of that

2. Prioritise Your Spending

While it’s tempting to splurge on nights out or the latest gadgets, it's crucial to prioritize essential expenses first. Rent, food, and bills should always come before discretionary spending. Once your essentials are covered, allocate a portion of your budget to leisure activities.

Plan for freshers week!!! This will be the biggest expense on going out in the whole of the first term with so much going on… I remember people spending their whole student loan in the first week and then stressing for the rest of the term.

3. Be Smart with Student Loans

Student loans can be a lifeline, but they are also a significant financial commitment. Only borrow what you truly need to cover essential expenses.

4. Cut Costs Where You Can

University students often have access to numerous discounts and deals. Take advantage of student discounts on software, travel, entertainment, and more. Consider buying used textbooks or renting them instead of purchasing new ones.

• Tip: Cooking at home is a great way to save money. Meal prepping can help reduce the temptation to eat out, which often costs significantly more than homemade meals.

• Tip: Write a list of little luxuries and ask family and friends as presents to get them – it might be your favourite perfume or costa gift card or whatever but will give you a little treat when you need it and so you don’t live without.

  
  

5. Build an Emergency Fund

Life is unpredictable, and unexpected expenses can pop up at any time. Having an emergency fund can help you cover these costs without derailing your budget. Aim to save at least £500 to £1,000 in a separate savings account for emergencies.

• Tip: Start small by setting aside a portion of your income each month until you reach your goal. Even £10 a week can add up over time.

  
  

6. Consider a Part-Time Job

If your schedule allows, a part-time job can be an excellent way to supplement your income. Many universities offer on-campus jobs that are flexible with your class schedule. Working a few hours a week can provide extra money for discretionary spending or savings.

• Tip: Look for positions that offer more than just money. Jobs related to your field of study can provide valuable experience and networking opportunities.

  
  

7. Understand Credit and Debt

Credit cards can be a useful tool if used responsibly, but they can also lead to debt if not managed carefully. If you decide to get a credit card, use it for small, regular purchases that you can pay off in full each month. This approach can help build your credit score without accumulating debt.

• Tip: Avoid the temptation of maxing out your credit card. Interest rates on unpaid balances can be steep, leading to a cycle of debt that’s hard to break.

  
  

8. Ask for help

If you’re feeling overwhelmed by managing your money, don’t hesitate to seek help. Many universities offer free financial counseling services for students. These advisors can provide personalized advice based on your situation and help you create a sustainable financial plan.

• Tip: Attend financial literacy workshops or seminars offered by your university. These can provide valuable insights into managing money, understanding student loans, and planning for the future.

  
  

9. Balance Work and Play

While it’s important to manage your money wisely, don’t forget to enjoy your time at university. Striking a balance between saving and spending ensures you can make the most of your university experience without sacrificing your financial future.

• Tip: Look for free or low-cost activities on campus. Many universities offer a wide range of events, from movie nights to guest lectures, that won’t break the bank.

The main thing about university is to enjoy the experience!!!!

As we are so conscious of it being daunting and just reading this isn’t enough support we are launching our money help subscription service to support and empower you to absolutely nail it.

For £10 a month you will get;

·      Free templates for budgeting

·      Monthly newsletter with tips of money saving and recipes etc

·      Free meal planner for on the fridge

·      1 hour free coaching to support you every 3 months

·      Ongoing whatsapp and email support

Watch out on our website for when it is live – link below

https://www.themoneyfriends.co.uk/plans-pricing

And good luck and enjoy

Laura and Nicola x