Students and well-managed finances aren’t typically things that go together and a recent poll confirmed this 70% of students said they have financial worries. These financial worries come amidst the cost of living crisis that is impacting the entire world and the UK government has even admitted that the maximum student may not be enough to cover all your living expenses.
So, if you’ve been feeling this pressure on your finances, then you may be looking for some help. That’s why we’ve prepared this handy guide filled with tips you can try to manage your finances as a student. This should ensure you can afford to pay your bills while also having the time of your life before you enter the full-time working world.
Read on to find our top tips and become confident in your finances for the rest of this academic year and the future.
Assess your spending habits
The first step in managing your finances is to see what you spend your money on every month. Split your payments into essential ones like rent or food and non-essential ones like clothes and takeaways. Once you have this list, you can look at areas where you can cut down your spending, leaving more disposable income to save for the future.
Create a budget
Now you know what you spend your money on, come up with a budget for your income. A good yet simple budget is the 50/30/20 rule, which means you spend 50% of your money on bills, 30% is disposable income and 20% is saved.
Ensure your budget leaves enough money for your regular payments to go out on time as this will help you improve your credit score, which will help you get a mortgage in the future when you’re buying your first home.
Take advantage of student deals
There are tons of advantages to being a student and one of the main ones is the deals you get. Banks will frequently offer debit cards to students with excellent overdraft facilities, should you accidentally spend a little more than expected. This gives you a financial buffer for emergencies, so you shouldn’t need to feel stressed about your bank balance.
Plus, you can access deals for many major retailers through websites like UNiDAYS if you do need to pick up some new clothes and often you can get discounts for gym memberships, so you can stay healthy and active alongside your studies.
These tips can be easily applied to just about any student’s finances but if your money is dwindling faster than you’d like, then you may consider getting a part-time job to add some extra funds to your account every month.
