It’s only a couple of weeks until the start of a new university year. For those students who have recently received their results and are planning their first term, congratulations! University is a time to enjoy your new found independence, dedicate to your chosen subject and, of course, have fun. So, the last thing any student wants to face is financial uncertainty and the stresses that come with it. Here, we look at some of the main financial considerations university students can take to make your experience a great one.

How costs can build up

With fees, accommodation, food, books and nights out, the costs of university can quickly add up. In the recent UCAS ‘Spend Student Lifestyle’ report, they found that the average student spends £235 in the average week and £421 on freshers’ week. With the current rise in prices, these figures are only going to climb making budgeting even more important.

Effective budgeting

Managing costs is not easy, especially when you are looking after your money for the first time. With 18% of students reporting that financial concerns had impacted their mental health, getting on top of your finances from the beginning can save on a lot of stress.

Create a budget

First and foremost, create a budget that is realistic. Your budget needs to cover what income you will receive and all of your regular, ongoing expenses (such as rent, utilities, phone bill, and gym membership etc.), plus any one-off or special costs. You can speculate this before starting university using a tool like the UCAS budget calculator. Creating a budget is often a process of finding the holes in your income and outgoings you had not thought of. The sooner you get a handle on this the better.

Sticking to a budget

Creating a budget is the first step, but sticking to it is another matter. Taking responsibility for your day-to-day finances can feel like a heavy weight, but it will set you up well for the future. Part of creating a realist budget is putting in place a financial buffer for any unexpected expenses, as well as reviewing your budget regularly in case costs change or your budget is not meeting your needs.

If you do find there are gaps in your income, you will be well placed to seek additional funding and income.

Additional funding and income

Many students opt to take on part-time work while at university for some extra income. But do make sure the extra work doesn’t get in the way of your studies. Keeping you CV up-to-date, knowing what your skills are and working with a recruitment agency can put you in-line for better paid work.

If you’re struggling with money, it is a good idea to get in touch with your university or college’s finance department, and see how they might be able to help. There is often extra finding available to students who are struggling, either from the government or directly from the university.

Get protection early

Personal protection is rarely on a university student’s radar, but it can save you significant stress and upheaval in case of an emergency. If you become ill during your studies you may find yourself out of pocket in loan payments, interest, rent arrears and costs associated with the deferral of your studies.

Personal protection policies, such as critical illness cover, can create a financial buffer for students facing a challenging time with their health. Such policies can place you in a better financial position to return to your studies as soon as possible whilst providing piece of mind that any costs incurred are covered. Taking personal protection out earlier in life usually costs much less in premiums depending on your personal circumstances.

Talk to us

It’s always a good idea to talk to a financial adviser who can answer your personal protection questions and help you navigate your financial aims. If you would like to talk to us, please get in touch.

PLEASE NOTE: Grosvenor Wealth Management Ltd is authorised and regulated by the Financial Conduct Authority.