What to do if you have money problems

Money struggles are nothing new to students. During a time of ever-increasing costs, students are having to be smarter and more efficient with their money. But smarter money saving techniques aren’t a catch all solution. Life can end up throwing a curve ball and a random emergency expense might come up. It might be a car issue, it might be needing new school supplies or books, whatever it might be, it can set any saving progress back. Around the winter holidays, this only gets tougher as you might have to start considering how you are travelling home during the holidays, buying presents if you must, etc.

It can quickly lead to money issues that can be difficult to escape whilst focusing on academia. This is clear to see as 59% of students said money management was ‘often’ or ‘always’ the cause of stress, with 41% saying the cost-of-living crisis was negatively impacting their wellbeing. But there are solutions to dealing with money problems, and we have listed some to support any student who is struggling.

Causes of student money problems

It’s good to understand some of the primary causes of student money problems to better understand how to avoid them.

Not establishing a budget

The excitement of moving away to study can take up all your focus with all the new opportunities. It’s all a thrill, but it is important not to get distracted from having a healthy budget in place. Once you overshoot and underestimate a budget and begin spending, it can be hard to re-establish a budget that works for your needs with readily established outgoings.

Using credit cards and overdrafts

With student overdrafts and zero percent credit cards available to students and ever-increasing costs, it can seem like the easiest option is to start putting expenses on credit cards. Without a full understanding of credit and a reliable income to pay it off, you might begin to miss payment deadlines, interest can build and repayments become larger and harder to manage, resulting in seemingly never-ending debts.

Not utilising student financial support

Many students when they move to a new place aren’t aware of the financial support that is available to them. Many think their loans are all that they have in the way of support. However, there are additional grants, bursaries and other forms of financial support available. There are grants available such as the Student Hardship Fund to support if a student is in a particularly difficult situation. It is best to investigate which bursaries and grants you might qualify for to get that extra support.

Choosing unaffordable student accommodation

It can be difficult to gauge what is affordable and unaffordable accommodation before you move and better understanding the cost of living in an area, but that doesn’t mean you can’t pick an accommodation within the budget of your maintenance loans. Choosing an accommodation that is more expensive because of a recommendation or minor addition that might be non-essential might seem sensible at first, but the cons of having an unmanageable budget will quickly become apparent.

Spending too much on course resources

You may think that all your course costs have been covered by tuition loans and your accommodation being budgeted for, but you may have overlooked the cost of study resources. The cost of books and equipment can set your budget back, but there are hacks to ensure it doesn’t take too much of a toll. Looking for pre-owned books, using a Kindle and seeking out refurbished equipment over paying full price for new equipment can be hugely beneficial to your budget.

5 tips to help with money issues

There are so many challenges in the modern world that make it difficult to save money and overcome financial issues, especially as a student. But it isn’t a hopeless endeavour. Here are just a few tips you can use to manage money issues:

1. Prioritise essentials

Once the key costs such as accommodation, food, household essentials and course resources are covered, it takes a lot of the pressure off any other budgeting. If you understand how much money you need for the essentials, you can then begin budgeting for social activities, luxuries, new clothes, etc.

2. Separate budgets and bank accounts

Using different pockets and wallets in your bank account to separate funds and budget effectively for each aspect of your life takes a lot of the confusion out of budgeting. When you understand that you have X amount for food, X amount for travelling and X amount for savings, you can begin to understand which cards to use in which situations and what your total budget for each is.

3. Plan for unexpected costs

Regardless of how well you might budget, you will always be hit with an unexpected cost. Whether you drive and need to pay for an emergency repair, if you need a new pair of shoes or coat desperately or simply if there is a new course cost that has arisen that you were unaware of. Having an emergency savings pot could be extremely beneficial. Regularly topping it up, even if it is small bits at a time, can build up a superb fallback option to relieve stress. If it comes to the end of the year or your time in education, you have a significant savings pot to use in the future.

4. Smart shopping

As a student, you are afforded certain luxuries that you should be taking advantage of. This is student discounts, reduced travel costs and student specific social meeting points such as the Student Union. Simply utilising these options can benefit your funds tremendously even though it may only seem like small savings at a micro level. As well as this you can utilise cashback programmes, you can look for reduced options whilst grocery shopping or completing large shops to meal prep at a lower budget supermarket.

5. Consider travel costs

It may seem small at first, but catching the bus, train or any form of public transport everyday can chip away at your budget and leave a big hole before you realise. If you live close to your campus, you can walk to save money and also improve your physical wellbeing. Familiarising yourself with the public transport routes and options to avoid the increased costs of taxis will keep your funds in check and one of the biggest ones, be sure to have a student railcard to cut down on the costs of trains.

Using a Student Assistance Programme (SAP) to deal with money problems

Juggling money concerns and academic pressures can be very confusing, especially if it is your first time budgeting as a young adult. Using HA | Wisdom Wellbeing’s Student Assistance Programme (SAP), you can access financial advice from our expert team 24/7, 365-days a year. Even if it is just for basic advice on how to effectively budget, where you can seek additional financial support from, our team can support you.

However, if financial issues begin to negatively impact your mental health and wellbeing, you can also contact our clinically accredited counselling team to assist you through solution-based talking therapies. No matter what the issue is, our team can support you or refer you to the professional support you need.

Conclusion

Student finances are never easy to manage and are a key part to student life. It can be stressful, draining and heavily detrimental to academic performance. Despite this, and despite struggles, there will always be support available to you.