Starting university is a huge shift. Sure, there’s the excitement of independence, but it also comes with a few curveballs, especially when it comes to money.
For many of us, it’s the first time managing finances solo, and let’s be honest, budgeting, bills, and student loans aren’t exactly covered in school.
I learned most of it the hard way: from missed deals to stretching my loan to reach the end of term.
So, here are all the money-saving tricks and tips I wish I’d known as a fresher – plus some expert advice from Francesca Henry, owner of The Money Fox and Peter Bryla at LiveCareer – so you don’t have to learn the long way.
Understanding student finance
Student loans are often the first big hurdle when starting university. Make sure you’re familiar with the UCAS and SFE (Student Finance England) websites, they hold most of the key information about loans, grants and repayments, here’s a breakdown of what they have to say:
A quick run-down of student loans
The Tuition Fee Loan does exactly what it says on the tin, it’s paid directly to your university, and covers the full cost of the course.
Maintenance Loans help you cover day-to-day living costs, things like rent, food, travel, and the occasional late-night takeaway.
You’ll get the latter in three installments across the year, and it’s meant to last the duration of each term (easier said than done, I know).
How much Maintenance Loan you get depends on your household income, where you live, and whether you’re studying in or outside London. It’s not one-size-fits-all, but Student Finance England will tell you exactly what you’re eligible for when you apply.
Applying on the SFE website is pretty straight forward, most full-time undergrads qualify if:
- You’re a UK national (or have settled status) and have been living in the UK, Channel Islands, or Isle of Man for at least three years before your course starts.
- You’re studying a full-time course at a recognised, publicly funded university or college.
- It’s your first time in higher education. (You might still be eligible if you’ve studied before, but the amount of support you get could be different.)
Application tips
Make sure you apply for your student loan on time, and if you can, get it done early! You’ll still get your loan if you apply late, but there’s no guarantee it’ll arrive before your course starts, which can be stressful if rent or bills are due.
Returning students – don’t forget to reapply! You have to do it every year, even if your details haven’t changed (I’ve definitely forgotten before).
Scholarships, grants and bursaries
A lot of students assume they won’t qualiy for extra funding, but according to a UCAS survey, over 75% of those who applied for a scholarship or bursary were successful.
Let’s break it down so you know what’s what and where to search.
- Scholarships are awarded by universities or organisations for academic or extra-curricular achievements, think strong grades, sports, or music. They can help with tuition fees or living costs.
- Bursaries come from universities or organisations and are based on household income or personal circumstances. They’re usually one-off payments to support living costs.
- Grants are offered by charities or trusts. Like bursaries, they’re income or circumstance-based, but often have a specific purpose, such as funding study abroad or placements.
Repayments
Knowing that you’re racking up a bunch of debt can feel stressful, but understanding how it’s repaid can calm those nerves.
You won’t start paying anything back until after your course ends and your income is over the repayment threshold (currently £25,000 a year, or £480 a week). You’ll repay 9% of anything you earn over the threshold, not your whole salary.
Repayments come out of your salary automatically, like tax and National Insurance, so you’ll see exactly what you’re paying back each month on your payslip.
Francesca notes that ‘even if you are not earning over this amount, the loan will still be accruing interest, which is something to bear in mind.’
Peter adds that most student loans have eventual write-offs after a set number of years. ‘Make sure you know which “plan” your course and location fall under, and research whether you also qualify for maintenance grants or additional funding that can reduce reliance on debt later,’ he says.
How I managed my money
Using bank account ‘pots’ (I use Monzo, but loads of banks offer something similar) was a total lifesaver for me. Throughout uni, I try not to overcomplicate it and stick to three main pots:
Essential expenses: rent, bills, and travel costs were all worked out and set aside first.
Student loan: not the most creative of names, but this is where I keep the remainder of my loan after deducting and separating my essentials, I look at what’s left of my loan and divide it into a monthly budget, each month I transfer a set amount into my current account. This system tries its best to keep me on track and accountable for how much I spend.
Fun money: I tried to put aside £15–£20 a week, plus any leftover savings from summer work. This pot was for nights out, takeaways, and those inevitable late-night corner shop runs.
I also used my regular current account as a kind of fourth pot, the one where everything landed after I’d transferred it from the others. This covered food shops, daily travel, and general bits. I didn’t follow super strict rules here, just kept an eye on things and tried not to overspend.
It’s by no means a flawless system, and being honest, I swapped things around all the time. Some weeks, fun money and my regular monthly budget blurred together, and other times I cut back on my food shop and stick to the basics just to free up a bit more for a night out – it’s all part of the experience!
If you’re looking for a little more structure in your budgeting, Peter says: ‘Managing money well starts with a clear, realistic budget. Firstly, track every incoming pound from part-time work, student loans, or scholarships, and compare it to outgoing expenses such as rent, groceries, and utilities. A simple spreadsheet can be an eye-opener, especially when it comes to expenses, so it’s key that you’re brutally honest with yourself when doing so.’
Smart savings tips
Finding student deals:
Always keep your student card on you. Most places accept UNiDAYS or Student Beans, they’re the best student discount hubs in the game, and having both apps is a smart move.
It’s not just coffee shops and clothing stores, student discounts can save you loads on tech (like Apple or Microsoft) and on memberships or subscriptions. Spotify, Amazon Prime, and Deliveroo as well as a handful of gyms offer generous student discounts, so make the most of cheaper workouts and discounted streaming.
Second hand and sales
Build a staple wardrobe you actually love, and if you’re clearing out, pop unwanted clothes on resale sites like Vinted or Depop.
I love a good clothes shop, but my budget didn’t always agree, so I started selling bits I no longer wore on Vinted. Once they were sold, I’d use the balance to buy second-hand gems (often cool vintage pieces) and it became a little ecosystem of buying and selling that kept my wardrobe fun, my closet organised, and my bank account untouched.
And remember that second-hand sites aren’t just for clothes! Textbooks can be really pricey, but you can often find them in great condition on platforms like Ebay, Vinted and Facebook Marketplace.
Black Friday and end-of-season sales are tempting (hello, girl math), but unless you’ve got something specific in mind, they can lead to unnecessary buys.
Quick tips to make your food shops stretch:
You’ll quickly build a go-to shopping list, nail the basics for everyday meals, and jazz it up when budget allows.
- Stock up on staples like pasta, rice, and tinned tomatoes so you’ve always got something to work with.
- Go in with a plan: meal prep, make a list, and don’t shop hungry (trust me, your snack cravings will take over).
- Freezing is your best friend. Bulk-buy meat, store bread in the freezer, and batch-cook things like bolognese, homemade pasta sauces, and soups for quick meals later on.
- Plan for snacks in your main shop, even if you’re not craving them. It’s cheaper than emergency corner shop runs.
- And don’t sleep on the yellow stickers, the best ones usually pop up about 30 minutes before closing, especially in smaller stores.
Francesca’s advice
‘The best way to save money on your food shop is to meal plan. If you have housemates then you could do this together, as it can often be cheaper to cook together than cooking for one. Use frozen food where possible so that you aren’t going to the shops all the time. Make sure you are eating on a schedule.’
Saving on travel
Train tickets and rail cards
‘Get a 16-25 railcard to save money and link to Oyster if you’re in London’ says Francesca, and I completely agree!
A railcard costs £35 per year, but you save 1/ 3 on every journey, so the card pays for itself in savings within just a couple of trips back home.
Try and book in advance where you can, and travel in off-peak hours – avoid the trains before 9.30am, and between 4pm and 7pm. Tickets during rush hour are both more expensive and the trains are packed!
Split-save tickets will help you save up to 50%, but be aware that refunds can be trickier if you miss a train or have one cancelled.
Study abroad programmes
Got the travel bug? Study abroad programmes are a great way to explore a new part of the world while staying in the education loop. Many UK universities have exchange agreements with international institutions, meaning you could spend a term or even a year studying overseas while still paying your UK fees. I went on a year abroad to New York this year, and here’s a peek into how the finances worked for me.
I paid just 15% of my usual fee to my home university, and that was my total tuition cost for the year (this may differ depending on your home university).
However, I had to pay for flights, a visa, medical insurance, rent and campus fees myself, so it’s not necessarily a less expensive year when you add it all up.
You’re also likely to need to prove funds for a financial guarantee, this amount is set by your host university, and is there to ensure you can meet the expenses that you might face living abroad.
Can you get any financial support for a year abroad?
The short answer is yes.
Firstly, you will still receive a tuition fee loan to cover your tuition, and a maintenance loan. Your maintenance loan will be at an ‘overseas rate’, in my case this meant I got a larger maintenance loan due to the average living costs of the place I was studying.
I was lucky enough to get Turing Scheme funding, a government initiative that helps cover travel and living expenses for students studying or working abroad. Your university applies for this, and if successful, awards grants based on a variety of factors.
Applications aren’t guaranteed, your university will let you know if you’re eligible for a grant. The university’s application is successful, the amount is based on how long you’re abroad and your host country’s cost of living, using a set daily rate.
If the Turing Scheme doesn’t come through, you can still apply for a Student Finance Travel Grant to help with transport costs.
The Butex scholarship is also available for undergraduate students who are studying abroad, designed to blend themes of sustainability with international study. You can find more information here.
When you’re already abroad, weekend trips and budget flights to neighbouring countries suddenly become very do-able (I was able to visit different states across the US, and spend some time in Central America!)
So if travel’s on your wish list, a study abroad programme is 100% worth exploring.
Starting university is exciting, but can feel like a bit of a crash course in money management! Whether it’s bagging a discount, freezing leftovers, or applying for that study abroad spot, every little bit helps.
