Managing your student finance is an essential ability when it comes to making your time in university less stressful and more enjoyable overall. For many students the move to university not only marks the first time living separately from family, but also the first time being solely responsible for all expenses. It can be a bit of a shock to the system to have to now consider such things as rent, bills and food in addition to the fun stuff. Being unable to manage this aspect of student life can then negatively affect your student experience, by making your main stress how much money you have, rather than your studies themselves!
In fact, as of 2024, 4 in 5 students in the UK had admitted that worries about money were causing them considerable stress, leading them in some cases to avoid social activities or to even avoid looking at their bank balance entirely out of fear.
1. Do your research
Knowing exactly what you need to be paying for and how much it will cost you is the first step in your process of managing your student finance properly. If you are UK based then you will be applicable for a certain amount of student finance, which is based on a sliding scale related to how much your parents/guardians earn.
Where you study will also have a large impact on how much money you need for your studies, and this is something you will need to take into account once you get your results and your final offers via UCAS. Living in London or elsewhere in the South East will be much more expensive than living elsewhere in the country, and this inflation of costs is likely to affect everything from your accommodation to how much you pay for groceries.
You should also make sure you check how much you would be paying if you rented privately, rather than heading straight to university accommodation, as this could be an area in which you save money.
Once you have worked out the above you will have a better idea of how much money you will need, meaning any shortfall will have to be accounted for if your student finance will not cover all your needs.
2. Apply for student finance and more
If you’re trying to work out how much funding you will need to study in Wales then this resource about student finance in Wales should be an essential read. Applications for student finance will usually need to have been made by the end of May in order to guarantee that your loan arrives in time for the start of the academic year in September/October.
There are two types of loans available. The first of these is the Tuition fee loan, which exclusively covers the cost of your course and is available to all students and is not means tested. This bypasses your bank account and gets paid directly to the university. The second part of your student finance is the Maintenance loan, which is literally to maintain you, covering everything from your rent to how much you can afford to spend on a night out. This second loan is means tested based on your family’s household income, with the expectation that either you or your family make up any shortfall.
3. Create a budget
Once you’ve done your research and received final confirmation of how much money you will be receiving from student finance/family then you are in a position to start creating a budget. Costs you will need to account for – listed in order of priority – include:
- Your rent. Many – but not all – universities charge this on a termly basis, whereas you will pay monthly if you rent privately.
- A deposit for your rental accommodation.
- Bills including gas, water, electric and WiFi if these are not included in your rent.
- An estimated budget for food, including eating out.
- A TV licence if you plan on watching live television.
- Your mobile phone bill in addition to any other ongoing monthly payments you may already be making for such things like subscriptions.
- Travel, including the cost of travelling home for holidays.
- A small amount for textbooks and stationery.
Funds left over, if any, will be your ‘fun’ money, that you can use freely as you wish, though we recommend trying to allot a small sum to a savings account, which will come in handy should you have an unexpected expense.
4. Investigate other sources of funding
Student finance isn’t your only option for lump sums of cash that will help fund your studies. In fact, there are plenty of scholarships, bursaries, grants and awards that you can apply for to help boost your income. Many of these are awarded based on academic merit, or perhaps sporting excellence. It could also be the case that you’re applicable for certain grants based on your individual circumstances.
If you wish to travel during your time at university and the travel would, or could, be linked to your studies, then there are even charities for this, where a board of trustees will consider your application and grant the necessary funds on how beneficial they think the sum would be to your academic future.
Prospective employers can also offer sponsorship, though you should make sure to check whether this would mean you have to work for them during holidays and/or after you graduate. Finally, your university should have a hardship fund, should you find yourself in difficulty during your studies. Funds are limited though, so this is definitely not something you should rely upon.
5. Conduct a job hunt
If, after all the sums, you discover you either have a small shortfall in how far your funds will get you or just won’t have enough money for ‘fun’, then a part-time job is probably the solution to your problem.
There are plenty of jobs suitable for students and many university cities and towns rely on students working throughout the academic terms to make up their staff. Jobs in the service industry are usually the most suitable, as the unsociable hours are less attractive to older job hunters and, as a student, you’re likely to be up at unsociable hours anyway!
Restaurants, bars, clubs, pubs and large event companies are likely to be easiest areas for you to find work in, but if you can find a role in an area that will be relevant to your future career then that’s even better! Your university will often have an online job board where they advertise local vacancies, including ones within the university itself. Large organisations such as Unitemps, StudentJob and Employment4Students can also be good sources of potential employment.
If you don’t wish to work whilst studying then an alternative is to plan to work in the summer break, when you will have a large window of time in which to save ahead of the upcoming academic year. This obviously has its drawbacks in that you will end up spending less time with family and friends from back home, but does mean you will know upfront how much money you have to last you throughout the academic year. Working in a more ‘concentrated’ fashion also means you’re more likely to find a role that’s related to your future industry, providing you with relevant experience for the future.
6. Manage your bank accounts
You will need to have a bank account in order to receive your student loan. However, you should make sure you conduct some proper research into which one is most beneficial for you, whether or not you already have an existing account. There will be lots of incentives offered to you by different banks to get you to sign up with them over a competitor.
Useful things could include a substantially sized interest free overdraft, a branch location close to your university, a good mobile app to make managing your finances easier, or a travelcard to help you save on travel expenses. We’ve also seen banks offer such benefits as supermarket gift cards, a lump cash sum, free or discounted cinema tickets and more, but you should be very realistic about which of these benefits will actually improve your situation the most. For example, if the supermarket or cinema chain is a good bus journey – or further! – from your university then you’re unlikely to ever use those perks.
7. Find ways to save money as a student
It’s a well-known fact that students aren’t exactly rolling in money, which is why lots of businesses offer promotions and discounts specifically to cater to students. However, you should make sure you aren’t spending simply to use a discount and are instead making the most of offers in areas where you would be spending regardless. For example, it’s very likely that you will need to use a train to head back home for the holidays, in which case purchasing a student railcard would definitely be a sensible way to spend.
However many businesses will offer a token discount to students when you display either your student card or a student discount card you’ve purchased (such as Totum). If you find yourself shopping simply because you receive a certain percentage off, you should probably reexamine why it is you’re purchasing these items. Many students veer into debt through unnecessary purchases on clothing and so on, with 52% having run out of cash before the end of term.
Utilise secondhand shopping website or shops for clothes, accessories and gadgets. If you’re looking into getting a bike your university may run an auction, which will be much more cost-effective than buying brand new (though definitely buy a brand new helmet!). You can try to cut down on costs by splitting the shopping with the other students you live with; even if you can’t agree on what you wish to eat, things such as dish soap and cleaning supplies can easily be split, especially if they’re exclusively used for the upkeep of communal areas.
8. Be mindful of debt
Debt isn’t always a bad thing but if you don’t keep control of it it can spiral very quickly. MoneySupermarket.com has some excellent advice on how to manage debt for credit cards and loans but the basic things to keep in mind are;
- Be aware of the interest – if any – applied to your borrowing and aim to have your debt paid off before interest is applied if you have a grace period that allows this.
- Debt is not always a bad thing but the size and manner of the debt can be. You may not consider a contract for a new phone to be a debt, but it is and this kind of debt – that you have carefully budgeted for and which is paid automatically by direct debit – is the kind of debt that can actually improve your credit rating in the long-term, so long as you don’t miss any payments.
- Never borrow from an organisation that isn’t authorised by the Financial Conduct Authority/Consumer Credit Register.
- Student bank accounts usually include an interest-free overdraft for a certain amount. Make sure you know how much this is and be aware that each time funds are moved to your account it will go to the overdraft first before replenishing your account with what the remainder. This option, however, is much preferred as a temporary shortfall measure than using a credit card, due to the interest free feature.
If your debt begins to get out of hand don’t ignore it, as it will not go away. You should immediately put a stop to unnecessary spending and get in touch with an organisation that can help you to manage your debt. These include National Debtline or the StepChange Debt Charity.
9. Be money smart
One of the best things you can do to prevent money worries is make sure all your essentials are accounted for in your budget and pay these upfront before spending on unnecessary items. This way you never have to worry that you don’t have enough to pay your rent or fill your belly. On the topic of food, planning and preparing your meals in advance can help to save you lots of money in the longterm, even if it feels like a drain on your time! Plan to bulk cook big meals and freeze portions to cut down costs and never ever do your weekly food shop on an empty stomach.
Other ways to be money smart include being aware of popular scams; falling prey to these could really decimate your budget and constitute a major setback. One way to do this is to use strong passwords for your online accounts, to never share personal information online and to avoid logging into student finance or your bank accounts when using public WiFi.
10. Ask for help if you need it
Last but not least, it’s important to know who to turn to should your student finances become a cause for concern. Your parents or guardians will most likely be your first port of call but if they aren’t in a position to help you financially then you should know in advance where else you can turn for aid. Your university will have systems in place to help. For example, if you are a Bangor University student (as many Varcity Living tenants are) they have a page on their website devoted to ‘Money advice’ which we have linked here. You can also find great help from places such as Save the Student, Money Helper, The Money Charity and UCAS.
We hope this helps you get ahead with student finance and that our tips ensure you manage your funds well as a student. If you would like to gather more information about rental costs in the Bangor area for student accommodation simply take a look at our Student Accommodation page.
