Avoiding Debt as a Student: How To Manage Your Money
Student life is full of amazing experiences, but it can also be a financial minefield. With the cost of your course, rent, food and social life to fund, it’s easy to get into debt before you even graduate.
With a bit of planning and discipline, you can avoid debt and set yourself up for a financially secure future. Here are some tips to help you manage your money and keep debt-free.
Budget
The first step to financial success is creating a budget. Track your income (including any part-time work or student loans) and expenses.
Be realistic about your spending habits and try to stick to your budget as closely as possible. There are many budgeting apps and websites available to help you get started.
Prioritise your spending
Make sure you prioritise your essential expenses like course fees, rent, bills and food shops. Once you’ve covered your basics, you can allocate the rest of your money towards non-essentials like entertainment and socialising.
Cook more, eat out less
Eating out can add up quickly. Try cooking more meals at home to save money. Meal prepping can also be a great way to save time and money during the busy weeks of university.
You can save money by teaming up with your housemates to cook meals together if you fancy it.
If you’d prefer to cook and dine solo, meal prep for the week so your food doesn’t go to waste.
Shop smart
When you do need to buy food, be sure to shop smart. Compare prices, look for sales, and buy generic brands when possible.
Shopping at budget supermarkets like Aldi and Lidl can save you lots of money compared to shopping at high-end shops like M&S and Waitrose. Watch out for your local corner shops like Tesco Express, as their costs are much higher than the superstore.
Try not to go shopping when you’re hungry because you might end up impulse buying a lot more food that you don’t need.
Get a part-time job
A part-time job can be a great way to earn extra money and avoid debt. Even if you only work a few hours a week, it can make a big difference in your finances.
Look for jobs that work nicely around your studies. Some universities offer paid employment for students, like becoming a student ambassador or working in the student union bar. Otherwise, look around town or indeed for other part-time work, but remember not to neglect your studies.
Be mindful of your social life
Student life is all about socialising, but it doesn’t have to break the bank.
Find free or low-cost activities to do with your friends. You can also host movie nights or game nights at your place instead of going out. Buying a few drinks is much cheaper than going out to bars and clubs.
If you do want to go out, do your research for the best student-friendly places to go. You can save money on things like drinks and entry fees if they offer student discounts or student nights.
Avoid unnecessary expenses
Take a hard look at your spending habits and identify any unnecessary expenses. Cutting back on unnecessary expenses can free up a lot of extra cash.
Do you need your Game Pass subscription or Spotify Premium? Can you share a Netflix for your house rather than having an account each?
If you’re keen to buy something new, check with yourself whether it’s a want or a need.
Take Advantage of Student Discounts
Many businesses offer discounts to students. Be sure to take advantage of these discounts whenever possible by taking your student card out with you.
Limit the use of credit cards or your overdraft
Credit cards can be a tempting way to finance your purchases, but they can also lead to debt. If you do use a credit card, be sure to pay off your balance in full each month to avoid interest charges.
If you need to dip into your overdraft, make sure you stay on top of how much you’ve gone into it. Try to find an overdraft that is interest-free.
Seek support
You might find your bank account running dry, without any idea how to cope with the cost of being at university. Remember that there is always help available to you.
Your university will have a finance department that may be able to help you if you’re struggling to live. Reach out to them to see what support they can provide to you.
Chat with one of our helpline advisers for free. We’re here to listen without judgement and help you to find solutions to your problems. You aren’t alone.
