Once university life begins, youth often experience a drastic shift in their financial environment, with new duties and costs emerging from all angles. Just learning to set up a budget, basic money management—those things go a long way towards improving their quality of life. Experts highlight that utilizing the 50:30:20 rule can provide a solid foundation for students. This popular budgeting method divides up 50% of your earnings to cover essentials, 30% for non-essential spending, and 20% towards savings or debt repayment.
Further, students need to be informed about the real-world financial implications they will encounter when transitioning into housing. The cost of an annual TV licence fee is £174.50. Students can pay this administrative fee in six monthly instalments of £29.10. Providing this flexibility can help relieve some of that financial pressure while young people get settled into university life.
Students need to get equipped to counter a focused slate of marketing and unique appeals designed specifically for their age group. With companies deeply focused on this demographic, it’s more important than ever for students to be vigilant in their spending decisions. Martyn James, a consumer expert, warns, “These companies are not your friends – they are actively targeting you at the moment.” Understanding these tactics will help students avoid being led into bad buying decisions.
When it comes to student housing, luxury apartment-grade trappings aren’t just impractical, they’re unnecessary to make students feel comfortable. Quality bed linens and a small but quality area rug are great investments that help make an inviting home. Students should check if they are covered under their parents’ existing home contents insurance policy, as this could save them money on necessary coverage.
Security is a very important issue for students who will be living away from home. Yet most insurance companies won’t reimburse for stolen goods unless there is evidence of forced entry. So, students are encouraged to store valuables in a safe place, lock doors and remain aware of their environment.
When it comes to managing your money, one smart move is to play the field when it comes to banking. Santander’s student account provides an interest-free overdraft of up to £1,500 in your first three years at university. To be eligible, students need to fulfill certain requirements. This flexibility can act as a buffer against unforeseen expenses.
For students living in or around London, it’s worth getting an 18+ Oyster photo card as well. This card reduces the price of traveling weekly, monthly or annually by 30%. Take advantage of cheaper public transit as a university student!
If you are living in shared accommodation with other people, it helps to share the responsibility of household bills. This strategy helps to build community while still making sure that people are paying their fair share for what they use.
Implementing loyalty programs will not only increase program enrollment, but it will lead to big savings for students. Students may register for grocery store reward cards. In this manner, they will be able to avail cashback offers and save discounts on their grocery billing. These small savings can accumulate over time.
To avoid running out of money, students can use free tools such as the MoneyHelper website to get tips on budgeting and spending. Having a clear running accountability of what has already been spent and paid prevents overcharging and encourages better spending practices.
From October, supermarkets will need to prominently display unit prices for items that are on offer, making it easier for consumers to compare prices. This policy shift will better prepare students to make more informed purchasing decisions when they go grocery shopping.
Students should be looking to buy used, whether that’s finding a used textbook or used furniture. This targeted approach can save millions while still delivering the resources these students need to succeed academically.