It's National Student Money Week, and Alexandra, a second year student, is sharing tips on how they manage their money.
Being a student in London is an incredible experience - but let’s be honest, managing money here can feel like an Olympic sport. One minute you’re flush with cash from your student loan, the next you’re wondering if you can stretch a bowl of pasta for three meals. With a little planning and a few habits, I have found I have been able to enjoy more without getting too stressed.
Money mindset
We all have different approaches to money and what works for others might not be the same for everyone. Some people are natural savers, always thinking ahead, while others live for the moment and deal with their finances later. There’s no right or wrong way to think about money.
I remember my first term at university - I avoided checking my bank balance for weeks, convinced it was bad news. When I finally did, I realised I’d spent way more than I thought. That moment of panic led me to start tracking my spending, even in small ways, and it made a huge difference. Checking my balance regularly or noting down expenses has helped me to feel in control - so I feel, understanding your own habits can help you make better choices in general.
Understanding your own habits can help you make better choices
Budgeting
Budgeting might sound restrictive, but it has actually has given me more freedom. It means I know exactly what I can spend without feeling guilty. I start by figuring out how much money I have coming in (student loans, part-time jobs, family support) and what’s going out (rent, food, travel, fun).
One popular method that I've also tried is the 50/30/20 rule - dividing money into 50% for essentials (rent, bills, groceries), 30% for fun (socialising, shopping, entertainment), and 20% for savings or emergencies. It’s not a hard rule, but it can help you see where your money is going. Seeing how much you actually spend on takeaway coffee can be a wake-up call!
Students' Union UCL have a free Money and Budgeting Advice available through the Unions advice service - you can use this form to book an appointment.
Saving
Saving as a student might seem impossible, but even small amounts add up. Setting aside a few pounds a week - even just rounding up your spending on a banking app - can make a difference when unexpected costs pop up.
London also has plenty of ways to save money. Student discounts are everywhere - UNiDAYS, Student Beans, and TOTUM can get you deals on everything from restaurants to gym memberships. For travel, a 16-25 Railcard or a student Oyster card will save you a fortune in the long run.
Making the most of London on a budget
One of the best things about London is that you don’t need to spend loads to have fun. There are free events happening all the time, from outdoor film screenings in summer to Christmas markets in winter. Museums like the British Museum, the Tate Modern, and the V&A are completely free, and many West End theatres offer cheap student tickets.
If you’re into live music, Sofar Sounds hosts intimate gigs around the city, often for under £10. Or if you prefer comedy, The Angel Comedy Club in Islington has free stand-up shows almost every night. Websites like Time Out London and Secret London are great for finding free and cheap events.
Becoming financially savvy
I've realised that understanding money now will really help me in the future. Learning about credit scores (which impact things like renting a flat in the future) or how student loan repayments work can help avoid financial headaches later on.
I used to think student loans worked like regular debt, but they don’t - you only start repaying once you earn above a certain amount, and anything unpaid is eventually written off. Knowing this helped me worry less about borrowing.
Making your money go further at UCL
London can be expensive, but UCL has loads of resources to help. There are financial support services if you need them, and student societies often offer discounts or free events. Cooking at home instead of grabbing food on campus, sharing subscriptions with friends, and buying second-hand textbooks are all easy ways to save.
By making a few small changes and building good habits, I feel more in control and get to enjoy time in London without constantly stressing about cash.
So next time you hesitate before checking your bank balance - just do it. It might be the first step toward financial freedom!
This piece does not constitute financial advice, and everyone should seek their own independent advice.