Managing your money can be overwhelming, especially at the start of the academic year when receiving your first funding payment or any large lump sum. That’s why it's important to start the year right with healthy financial habits like budgeting. By starting each new term in this way, you’ll be more likely to ensure your funds last.
Where to start with managing your money:
Calculate Your Total Income: Start by adding up all the money you have coming in to create a monthly total. This includes your maintenance loan, income from work, bursaries, scholarships, grants, contributions from family, and any savings or investments you may have. If your income is uncertain, for example from flexible work, factor this into your budget, by using a conservative average of the amount you expect to receive.
Calculate Your Essential and Non-Essential Outgoings: Identify your essential living costs. These may include accommodation fees, utility bills (such as gas, electricity, water, phone, Wi-Fi, TV license), groceries, toiletries, laundry costs, travel expenses, medication, childcare costs, tuition fees, and any subscriptions you may have. Once you have calculated your essential expenses, identify non-essential outgoings such as social spending, clubs and societies.
Budget Wisely: Try to ensure that your total income exceeds or at least matches your essential expenses on a weekly or monthly basis. This will help you avoid running out of funds before the end of term. You can use the free Money Helper budgeting tool https://www.moneyhelper.org.uk/en/everyday-money/budgeting/budget-planner
Watch Out for Scams: Students are unfortunately sometimes targeted by scammers, because of receiving large lump sum payments such as student maintenance loans. It’s important to be conscious of this when discussing your finances with anyone or sharing personal details. Always double check who you may be talking to and stay up to date with guidance from your funder. For more information on scams from the Student Loans Company, see https://www.gov.uk/government/news/student-smishing-scams-on-the-rise--2 and see guidance from Action Fraud on how to stay safe https://www.actionfraud.police.uk/news/studentsafety
If you find yourself overspending or in difficulty, here are some tips to help you get back on track:
Review your Expenses: Part of maintaining healthy finances is being conscious of where your money is going. That’s why reviewing your spending habits regularly is important. This might involve reducing spending on non-essential items like takeaways and daily coffees or finding cheaper alternatives for regular purchases such as groceries.
It is also important to consider how you can reduce your essential outgoings, including finding alternatives for more affordable accommodation and utilities. By regularly reviewing your bills and subscriptions, such as your mobile phone contract, you can make sure you are getting the best deal and avoid paying for things you may no longer use, such as entertainment or gym subscriptions.
When you do eat out or go shopping, try to take advantage of any deals and apps that gives discounts, especially those for students. If you are looking to make a new purchase, consider preloved or second-hand options, before buying new. You can also make use of loyalty cards and have a look at https://studentsunionucl.org/articles/best-loyalty-cards-for-ucl-students
Increase Your Income: Consider taking on additional work or finding ways to boost your earnings, for example by applying for grants or scholarships. You may also be able to make some extra cash by selling clothing or footwear you no longer wear, or tech items you have no use for.
Seek Advice: Don't hesitate to speak with a Money & Budgeting Advisor who can provide personalised support and advice on managing your finances effectively [email protected]
Borrow Responsibly: If necessary and as a short-term option, explore appropriate interest-free borrowing options such as your student overdraft. This may be an option if you are experiencing a delay to your income and you know you will be able to repay the amount borrowed comfortably, within a reasonable period. It is important to remember to only borrow what you need; remember you will have to pay it back and to seek specialist financial advice from your credit provider or bank before doing so.
To learn more about Student Bank Accounts and which 0% overdrafts you may be able to access, see https://studentsunionucl.org/articles/student-bank-accounts-what-you-need-to-know
Remember, budgeting is a skill that takes time, but with practice you can make the most of your funding and stay on top of your finances throughout your academic journey. For free and confidential money advice and support or the chance to speak to someone about improving your financial situation, contact the advice service for an appointment at [email protected]
The above information is for information purposes and does not constitute financial advice. For tailored financial advice, students are advised to do their own research, seek independent regulated financial advice and speak to their chosen banking provider before accessing any financial products.