How cash-strapped students can thrive (not just survive) at university

My first money lesson as a university student some 20-odd years ago? Topshop Oxford Circus isn’t your friend. Yes, it was huge! The shopping possibilities were endless! It offered a student discount! But 10 per cent off fashion you can ill-afford isn’t a discount – it’s a debt.

Newly arrived in London and armed with my first student maintenance loan instalment, I headed for the (then top) fashion retailer’s flagship store. When I ran out of money, I opened a Topshop store card.

Hundreds of pounds later (and skint) I realised the error of my ways – one I was paying for years after my studies had finished.

Don’t get me wrong, shopping is fine if you can afford it. But I couldn’t. Barely a month into my first term at university, I was struggling to make ends meet and had to scramble to find a part-time job. More than one, in fact. I ended up working so much it impacted my studies.

I can make light of it now, but it was a really painful time. I would have benefitted from practical support to help me figure out whether, with my maintenance loan and no parental support, I’d have enough coming in to cover what was going out at university. And if not, what shortfall I’d need to cover with a part-time job.

Because running out of money is no joke. And 20-odd years after my time at university, 82 per cent of students worry about making ends meet.

This is according to the annual National Student Money Survey by student finance experts Save the Student. They found that the three most common areas of student life impacted by money worries are diet, mental health and social life.

One student in the survey summed up how tough it can be to keep up with their studies when struggling financially: “The stress of worrying about money makes me want to cry. How I passed my first year I don’t know but I [did] not have the energy to focus on doing financial plans and worked hard to get money as well as studying.

“I have the motivation in me, but it is so hard and degrading going into university and constantly being told to get this book and these resources for my course and I’m worrying about [what] I’m going to eat tonight.”

We must do better when it comes to preparing our children and young people for managing money in adult life.

We send them off to university without the tools to manage their money – and then wonder why so many find it hard.

We’re setting students up to fail when we don’t talk about how much it really costs to go to university.

Students can think they’re doing something wrong if they can’t make ends meet. But often, they’re not receiving enough to live on in the first place. 

Save the Student’s National Student Money Survey put average student outgoings at £1,078 a month – almost £13,000 a year. But they found that the average maintenance loan is approximately £6,116 a year. This is a significant shortfall.

These are averages, of course. The amount of maintenance loan a student receives depends on which UK nation they’re from, whether they live at home or not, their household income and how long they’re studying for.

And in some parts of the UK – Wales, Scotland and Northern Ireland – the maintenance loan is part loan and part grant. Unlike loans, grants don’t have to be repaid.

But students face the same inflationary pressures as everyone else. The rising cost of living in recent years means our money has to stretch further and the maintenance loan, particularly for students from England, hasn’t kept up.

Many higher education bodies, including Save the Student and The Russell Group which represents the UK’s leading universities, are calling for maintenance loans to keep up with inflation.

If you’re a student, there are a few concrete things you can do to make your money go that bit further at university.

1.      Discount retailers are your friend…  and buy in bulk

You may be used to Marks and Spencer, Waitrose and other pricey stores, but as a student it’s time to give the little guys a go. You can often do your food shop for less at markets, as well as the likes of Aldi and Lidl. Also, if you have space in your kitchen, buying in bulk when it comes to staples like rice and pasta is more cost-efficient than buying smaller packets. From takeaways to opticians to gyms, many places give student discounts – so it’s always worth asking!

2.      If you’re able to, walk!

If you live in London/Leeds/Nottingham or many other big cities, chances are most things you need are within five miles of your home. Public transport and cabs can be expensive, so where you can (and if you can), use your legs - they’re free and it’s good for you.

3.      Get a job

If your studies allow for it, seek out job opportunities – they can be a win for your budget and your CV. My first job when my money ran out was as a student ambassador for my university. I loved this role. I got to visit schools and colleges holding workshops and delivering talks on the realities of university life, work with students across courses and campuses who I wouldn’t have met otherwise, and the skills and experiences I gained really boosted my CV. And, of course, it paid!

Parents, carers, guardians, extended family members and educators, can also help young people thrive at university.

Help them figure out if they will have enough money coming in to cover rent, groceries, bills, transport, socialising and all of their other outgoings while at university. And if not, help them work out what the shortfall is and how they can cover it. You’ll find a helpful student budgeting guide on the Save the Student website.

University student money advice teams are there to help too. As one student money adviser told me: “Students often only approach us when they’ve run out of money and are in crisis mode but we’re here to engage with students from the start. We want to help them manage their money and set them up for success so they can focus on their studies.”

Talia Loderick is a money coach who helps people to understand and take control of their finances. Her website can be found here