The beginning of uni life will often be the first time some students may have had to manage their own expenses, covering everything from weekly food shops, new equipment and even deciding which societies to join. As they get ready to fly the nest, taking some time to help them master the art of budgeting will be key to their financial independence – and your peace of mind. 

In this blog, we’ll offer essential tips to help your family budget wisely. While they're mainly aimed at first year students, known as freshers, those moving into a rental property with friends for their second year may also find them useful. Taking on board these little tricks could give them the confidence to manage their finances, make the most of their university experience, and build sound financial habits for the future.

As the university adventure begins, students might not instinctively think about all the ‘everyday expenses’ that come with their new life away from home. Rent, groceries, transportation costs, insurance, society membership fees, and academic subscriptions will all need to be managed. For those moving into accommodation outside of university halls, managing utility bills will also be important.
 

Helping identify these essential expenses and understanding the difference between ‘needs and wants’ will be crucial so they can learn how to prioritise their spending.

Just as we understand the importance of saving for a ‘rainy day’, it’s crucial to teach new students how to create a balanced budget. This will help them set aside funds for not only unexpected costs but also the spontaneous adventures that can make university so memorable.

While the first few weeks of university are filled with thrills and nervous excitement, remind your fresher to track their spending. This will help ensure they keep to the budget they’ve set as much as possible. Even simple steps, like noting activity costs in their weekly or monthly planner, can make a difference. Budgeting apps can track their expenses and also help them build smart financial habits that will serve them well throughout their university years and beyond.

When helping your family learn about budgeting, share some of your favourite money-saving tips from your university days or past experiences. Let them know how important it is to watch out for small expenses, too – these little costs can really add up over time. By showing them how to keep track of even the smallest purchases, you’ll help them build strong financial habits that can make a big difference in their overall budget.
 

Here’s our top tips to help students save money while they're at university:

• Explore student discounts: Their Student ID (or email address) unlocks a world of savings on transportation, entertainment, supermarket savings, and more. This could include a six months free subscription to Amazon Prime for next day delivery for any essentials, free access to useful tools like Microsoft Office and money off at homeware retailers like Ikea and Dunelm to help them kit out their new accommodation.¹
• Share subscriptions: Suggest they share the costs of popular streaming services like Netflix and Spotify with roommates to save money.
• Use cashback apps: Introduce them to cashback apps, which offer rebates on purchases from various retailers.
• Sell unwanted items: Encourage them to regularly declutter and sell unwanted items in their university neighbourhood. It’s a quick, useful, and eco-friendly way to earn extra cash.
• Part-time jobs: A part-time role at the university café or a local shop is a great way to source extra funds for those treats and fun nights out with friends.

It’s also important to consider which bank accounts can make the most of a new student’s savings. If you’re gifting them money or they receive a maintenance loan, they should look at setting up a savings account in addition to a Student Current Account for their everyday spending. By keeping some money aside in an Easy Access account, they can generate interest on this money, while being able to access any funds whenever they need to.
 

Equipping your fresher with budgeting skills before they start university will support them in building their financial independence. By helping them understand essential expenses, how to create a balanced budget, the importance of tracking their spending, and finding smart ways to save, you can help ensure family attending university are prepared to manage their finances through their first year and beyond.