Pitfalls to avoid when managing your finances at uni

Piggy bank

Becoming a student is an exciting time. Freedom, new people and a new town to explore for most. That, coupled with a four-figure lump sum in your account, calls for celebrations all round right? We’ve heard many a story of living like absolute royalty for the first half of term only to be eating value noodles for the last few weeks, so we’ve highlighted some common pitfalls and how to overcome them…

Pitfall #1 – Freshers’ week

Freshers’ week will be the best kind of attack on the senses, what with meeting your fellow first years, going to official events and ad hoc parties, signing up for societies and getting to know your uni. The best way to look after your purse strings when you’re out socialising during Freshers is to leave the card at home. Visibility is the key here and nothing feels more painful than repeatedly handing over a fresh £20 note.

A recommended budget for the week is around the £240 mark once you take nights out, uni societies and obligatory fancy dress into account! A full guide can be found here (warning – freshers’ flu cure not included!).

Pitfall #2 – I have money!

Picture this – you’ve got your student loan through and you’ve never been so rich in your life. Surely this amount of money will last a lifetime and you’ll be singing all the way to next term?

It’s so simple to become best friends with your debit card, only for your jaw to drop halfway through the term. Cash over card is advised in most situations to give you clarity on your spending, as well as handy budgeting apps that neatly sort your spending by category. On Trees is a handy app that will set you on the budgeting roadmap into adulthood. Try and reverse your spending into frugality at the start – and then you can buy the occasional treat when all the necessities have been bought.

Pitfall #3 – Life’s luxuries

Budgets don’t have to be long-winded, and will definitely take one of the strains away from university life. Most importantly, face your spending demon head on – are you a take-away lover or an accessories addict? Split your outgoings into vital items, such as food and textbooks, and leave the treats for the end of term just before your next Maintenance Loan instalment.

Frugal times encourage creativity too, so why not conjure up your own take-away-inspired dish or invite like-minded students to a clothes swap?

Pitfall #4 – Buying everything new

Your first food shop will probably contain items you never thought you’d have to buy such as a dustpan and brush, kitchen scales and the like. These can easily add ££ to an already impressive groceries bill.

Freshers’ week is a great time to spy discounts from final-year students. Most will be wanting to shift items such as kitchenware or old textbooks, so you should be able to pick up a bargain. Remember too that you have at least three years to acquire items that have taken your parents a lifetime to collect, so some items such as kitchen gadgets can definitely wait until later down the line. And it might be worth asking your parents if they’re planning on upgrading any of their culinary equipment before you head off to uni, as you might be able to get a few hand-me-downs from them!

Advice provided by Sara Newell, Head of Student and Graduate markets at Endsleigh.

Leave a Reply

Your email address will not be published. Required fields are marked *