Cost of living

• Tuition Fees: Understand the cost of tuition, fees, and any additional educational expenses. Allocate funds accordingly and consider financial aid options.
• Accommodation: Budget for rent, utilities, and other housing-related expenses if living off-campus.
• Food and Groceries: Allocate funds for groceries or eating out. Plan meals and snacks to avoid overspending on food.
• Transportation: Budget for transportation costs such as public transit fares, gas, parking fees, or bike maintenance. Explore student discounts on transportation options.
• Personal Expenses: Set aside funds for personal expenses such as clothing, toiletries, and entertainment. Be mindful of discretionary spending to avoid overspending.
• Differentiate between needs & wants - Prioritise needs like housing, food, and transport before non-essential purchases or luxuries.
• Savings Goals: Establish savings goals for emergencies, future educational expenses, or personal goals. Start building an emergency fund to cover unexpected expenses.
• Part-Time Employment: Consider working part-time to supplement income and cover expenses. Balance work commitments with academic responsibilities.
• Financial Aid and Scholarships: Maximise financial aid opportunities through scholarships, grants, and student loans. Apply for scholarships and grants to reduce reliance on student loans.
• Budgeting Tools: Use budgeting tools such as apps, spreadsheets, or online resources to track income and expenses, set goals, and monitor spending habits.
• Review and Adjust: Regularly review your budget to ensure it remains realistic and effective. Make adjustments as needed based on changes in income, expenses, or financial goals.

By incorporating these key elements into your budgeting strategy, you can effectively manage your finances and achieve financial stability during the academic journey.

Here are some effective methods for budgeting:

1. Use the 50/30/20 Rule

• Allocate 50% of your income to needs (rent, bills, food)
• Allocate 30% to wants (entertainment, hobbies)
• Allocate 20% to savings and debt repayment

2. Zero-Based Budgeting: Allocate every dollar of your income towards expenses, savings, or debt repayment, ensuring that your income minus expenses equals zero. This method encourages students to give each dollar a purpose and prioritise spending accordingly.

3. Pay Yourself First: Set up automatic transfers to your savings account or investment account as soon as you receive your income. This ensures that you prioritise saving before spending and helps you build a savings habit over time.

4. Emergency Fund Budgeting: Prioritise building an emergency fund to cover unexpected expenses, such as medical bills or car repairs. Aim to save enough to cover three to six months' worth of living expenses to provide a financial safety net.

The key is to create a realistic budget, stick to it, and continually review and adjust it as needed throughout your studies. Developing smart money habits early on will serve you well in the long run.

Take advantage of student discounts

You can find student discounts on everything from textbooks to transport. Check out sites like Student Beans, UNiAYS, or TOTUM . Youth Hostel Association (YHA): Offers discounted rates on accommodation for students traveling in the UK and abroad. 

• Student Beans
• UNiDAYS
• Totum

Make the most of campus resources

Take advantage of resources available on campus, such as academic tutoring, and the library. These services can help you save money and succeed academically. We have specialists in our Student Services department who can help you with anything relating to health and well-being, disability support, financial guidance, visa support, and career services.  

Transportation

Explore student discounts on transportation options like Student Oyster Cards or Rails Cards. 

• Railcard
• 18+ Student Oyster photocard

Find Part-Time Employment

Look for part-time job opportunities on or near campus to supplement your income. Consider work-study programs, internships, or freelance work to earn extra money while studying. Contact our careers team to find out how they can support you here. 

Avoid Impulse Purchases

Wait 24-48 hours before making non-essential purchases and unsubscribe from promotional emails that may tempt you.

Blackbullion

Blackbullion - The all-in-one student money management space. All the money skills you need to take control of your financial life with confidence.

MoneyHelper

Money Helper - The platform has tons of budgeting guidance and support available. There is also a budget planner that you can use on the website. The platform assists in making money choices and provides impartial guidance that is backed by the government.

Snoop

Snoop a budgeting app, that lets you manage all your finances in one place. With Snoop you can effectively manage tools, set budgets, and receive smart spending ideas.

Banking apps

If you are not looking to download a new app, most of your regular banking apps provide a budgeting feature. Either check within your banking app or reach out to your bank's customer support.

Use separate accounts

Consider setting up separate accounts for different purposes (e.g. one for fixed expenses, one for savings, and one for non-essential spending). This can help automate your budgeting, so there’s less active planning each month

Inflation is when prices for goods and services increase over time, which means that the purchasing power of money decreases. To illustrate the impact of inflation on money, lets assume you had £100 today and the yearly rate of inflation is consistent at 2% annually , the table will highlight how much the £100 today will be worth in times to come;

The above illustration highlights the importance of saving money and eventually investing it in such a way that it provides you a cushion against the diminishing value of money you have. 

Saving money and the motivation behind it is different for each individual. Although inflation as highlighted above is a very good reason, there are plenty of other reasons why you should consider saving. Below are a few reasons;

1. Peace of Mind: Having savings provides a sense of security and peace of mind, knowing that you have a financial cushion to fall back on in case of emergencies or unexpected expenses. It can reduce stress and anxiety about money, allowing you to focus more on your studies and looking after your overall health and well-being.
2. Financial Independence: Building savings as a university student can help you become more financially independent. Having money set aside gives you greater flexibility and autonomy in your financial decisions, allowing you to pursue opportunities such as studying abroad, taking unpaid internships, or starting your own business without relying on parental support or loans.
3. Reducing Debt: Saving money can help you avoid or minimize student loan debt. By saving and budgeting effectively, you may be able to cover some of your expenses without relying solely on loans, thereby reducing the amount of debt you graduate with and potentially saving money on interest payments in the long run.
4. Future Expenses: Saving money now can help you prepare for future expenses such as graduate school tuition, relocation costs for a job, or purchasing a car or home after graduation. By starting to save early, you can reduce financial stress and be better prepared for major expenses down the road.
5. Opportunities and Investments: Saving money opens up opportunities for future investments and financial growth. Whether it's investing in stocks, starting a retirement account, or pursuing entrepreneurial ventures, having savings can provide the capital needed to take advantage of opportunities and build wealth over time.

1. Assess Your Finances and Expenses: Start by understanding your financial situation. Calculate your income from sources like part-time jobs, scholarships, grants, and allowances from parents. Keep track of your spending to ensure that you stay within your budget. Use budgeting apps or spreadsheets to monitor expenses and identify patterns or areas for improvement.
2. Take Advantage of Student Discounts: Many retailers, restaurants, and entertainment venues offer discounts to students. Always ask if a student discount is available before making a purchase and make sure to carry your student ID with you. There are plenty of student discount apps and other platforms where you can save money which you can find by following this link.
3. Avoid making impulse purchases: Before making an impulse purchase, consider what else you could do with that money. Is there a more important financial goal you could be saving for instead? Stay away from places or situations that trigger impulsive spending, such as malls, online shopping websites, or sales events, unless you have a specific purchase in mind. Bringing a friend along while shopping can provide accountability and an outside perspective. They can help you stick to your budget and avoid impulsive purchases. Instead of shopping for entertainment, find alternative activities that don't involve spending money, such as exercising, reading, spending time with friends, or pursuing a hobby.
4. Cooking Meals at Home: Eating out can be costly, so try cooking meals at home instead. Plan your meals, shop for groceries in bulk, and prepare homemade lunches to take with you to university. Not only is this more budget-friendly, but it's also often healthier. Try Supercook and it will suggest you recipes based on the ingredients you have.
5. Maximise Free or Low-Cost Entertainment: Take advantage of free or low-cost entertainment options such as student events, campus activities, museums, parks, and libraries. Look for discounted tickets to movies, concerts, or sporting events. Speak to your Student Union on the 4th Floor of the Harbour Exchange (HX4) campus and check out all the activities you can take part in.
6. Create an Emergency Fund: An emergency fund can be for a specific purpose or for anything and everything life can throw at you as a surprise. Not too long ago we the world went through the Coronavirus crisis, which can be used as a great example of how an emergency fund can be vital. The aim should be to save at least three months of living expenses, so if for any reason your income stops, you can rely on these funds for crucial support.

Have a goal in mind and you wish to start saving but not sure how much you need to put aside each month ? Follow the link and you can use a savings calculator.

Now that you have started saving, let's see how you can make money work for you and make more money. A simple thing to remember is money sitting in your current account is actually losing its value, don't worry the amount is still the same, but inflation would mean that you get less for money tomorrow than today as prices go up.

1. Traditional Savings Account: Opening a savings account at a bank or credit union is one of the simplest ways to save money. Depositing money into a savings account allows it to earn interest over time, helping it grow.

2. High-Yield Savings Account: High-yield savings accounts typically offer higher interest rates compared to traditional savings accounts. While these accounts may require a higher minimum balance or have restrictions, they can help maximize savings growth. Contact your bank customer support and explore the options you have.

3. Online Savings Accounts: Online savings accounts often offer competitive interest rates and lower fees compared to brick-and-mortar banks. They can be a convenient option for students who prefer managing their finances online. Some of the options are Monzo , Starling Bank and Revolut.

4. Round-up apps: Round-up apps help users save money by rounding up their purchases to the nearest pound and depositing the spare change into a savings account or investment portfolio. Some popular round-up apps in the UK include Moneybox, Chip and Plum.

5. Lifetime ISA - You can use a Lifetime ISA (Individual Savings Account) to buy your first home or save for later life. You must be 18 or over but under 40 to open a Lifetime ISA. You can put in up to £4,000 each year, until you’re 50. You must make your first payment into your ISA before you’re 40.The government will add a 25% bonus to your savings, up to a maximum of £1,000 per year. To read more on lifetime ISA, please click here to understand the pros and cons of the account.

Saving money during university is like laying a foundation for a brighter financial future. It gives you the tools you need to handle life's ups and downs, grab exciting opportunities, and feel more secure down the road. When you start saving early, it's like building a sturdy financial house for yourself. You'll be better prepared to handle unexpected costs, keep your debt in check, chase your dreams, and pave the way for a happy and prosperous tomorrow.

Deciding between saving and investing is easier when you understand how each one helps you reach your goals. Saving money is good for short-term needs like unexpected expenses or emergencies. Investing is about making your money grow for the future, like saving for retirement or your kids' education. Remember, what's right for someone else might not be right for you. Some investments need more money upfront than saving accounts do, and they need regular attention, while savings are usually simpler.

When choosing between saving and investing, consider your goals. If you aim to cover short-term expenses or emergencies, saving might be best. While cash savings have minimal risk, they may struggle to outpace inflation or offer high returns compared to riskier investments.

If saving is your focus and want to know more, please check out chapter 2 on saving where you can learn more about tools and techniques to save.

Let's dive deeper into why you should invest, the risks associated with short and long-term investing, and explore some of the options you can invest.

Investing will allow you to grow your money over time potentially providing significant returns in the future. It is also a great way to enhance your financial education and learn more about financial markets, and principles of risk and return.

Investing can help you beat inflation. Inflation diminishes the purchasing power of money and historically investments in assets such as stocks and real estate have outpaced inflation. Inflation is when the prices of goods and services increase over time, meaning your money can buy less than it used to. So if you keep your savings in a current account, the value of the money decreases.

Investing can also help you spread your risk across different asset classes such as stocks, bonds, and real estate. Diversification can help reduce the impact of market volatility on your investment.

1. Time - Investing money is a long-term strategy and if you are unable to spare your money for at least 3 to 5 years consider saving your money instead. Longer time horizons generally allow for more aggressive investment strategies and greater potential returns. So the earlier you start the better it is.
2. Risk Tolerance - Being prepared to ride a rough tide, essentially a bad market condition for your investment, and giving enough time to recover is essential. Generally, younger investors with longer time horizons can afford to take on more risk in pursuit of higher returns.
3. Start Small and Be Patient - There is no minimum amount required to start investing. Starting small allows you to learn without risking significant amounts of money and gradually increase your investment as you gain confidence and experience.
4. Do your research - Give yourself enough time to learn and research different investment options, strategies, and potential risks. Consider seeking advice from financial professionals if needed. Please remember every individual is different in their risk appetite, and financial situation, and a strategy that works for your friend, may not be the right fit for you.
5. Diversify - As the saying goes, never put all your eggs in one basket. Spread investments across different asset classes to reduce risk. Avoid putting all your money into one investment, as diversification can help protect against losses in any single investment.

By carefully considering these factors and taking a disciplined approach to investing, as university students you potentially build wealth, achieve your financial goals, and lay the groundwork for a secure financial future.

The magic of compounding is like a superpower for your money! It's all about earning returns not just on your initial investment, but also on the returns you've already earned. Picture it like a snowball rolling down a hill, gathering more snow as it goes—it starts small, but over time, it gets bigger and bigger at a faster rate. You would be amazed to see how tiny bits of consistent investment can grow and become an astounding number.

Let's understand with some numbers:

If you had £500 to invest as an initial amount and wanted to contribute £50 every month for the next 20 years, below would be your amount invested and the amount you would have based on average market returns

Please use the link here, to play around with different numbers, years, and rates of return. Time and patience can be a powerful tool investing and this calculator will help you understand this a bit more.

1. Stocks and Shares ISA Options
   
   a) Trading 212 - Trading 212 is a commission-free trading platform available in the UK and Europe. Users can trade fractional shares, meaning they can invest in stocks with as little as £1. It also offers a practice account, so a great way to practice and learn.

   b) Hargreaves Lansdown : Offers a platform for investing in a wide range of stocks, funds, and other investment products.

    

2. Index Funds/ETFs

   a)Vanguard Investor: Offers a range of low-cost index funds and ETFs, allowing investors to build a diversified portfolio based on market indexes.

   b)iShares by BlackRock: Provides a wide selection of ETFs tracking various market indexes, offering exposure to different asset classes and regions.

    

3. Crypto Currencies

   a)Coinbase: One of the most popular cryptocurrency exchanges, offering a user-friendly platform for buying, selling, and storing a variety of cryptocurrencies.

   b)Binance: Provides a wide range of cryptocurrencies for trading, along with advanced trading features for experienced investors.

Investing is a long journey and not a short trip, so get excited to learn, set some awesome goals, and kickstart as early as possible. It's all about unlocking the magic of compounding and watching your wealth grow over time. Just keep in mind, that investing is an adventure that needs patience, discipline, and commitment. With the right attitude and strategy, you will be able to get the desired results and just like anything in life in doubt ask for support. Never assume anything when it comes to investing and the past results are only an indication of what potentially you could end up earning and not a guarantee.