Student life: Financial anxiety

A survey of 3,500 university students, college students and apprentices across the UK has revealed that more than one in ten are accessing food banks, and an increasing number are turning to their savings, credit cards and bank loans.

The survey suggests the crisis is having a devastating impact on wellbeing, with 90% of students reporting an impact on their mental health, and 31% reporting this to be a ‘major’ impact.

While the survey paints a clear picture of students’ struggles, only 20% of respondents say they have received any sort of support from the UK Government or their devolved government, and just 8% think their government is doing enough to support them.

Rising tuition fees

After months of discussion and speculation about how universities will fill budget deficits, the UK government confirmed that tuition fees will be increasing to £9,535 a year in England in 2025. If anything, the government is only making it more difficult for students from lower socio-economic backgrounds to make the decision to attend university.

The impact of this price rise on graduates' mental health in the years to come should not be underestimated. Financial wellbeing is something many students struggle with every single day – with tuition fees, materials, accommodation, and cost-of-living inflation piling up, it can be hard to keep up with the rising costs.

Financial anxiety

Alarmingly, 7 in every 10 students have either been diagnosed with a long-term mental health condition, are experiencing a short-term mental health condition, or think they may have a condition that has not been diagnosed. Research also shows that 50% of students have considered leaving their course because of mental health challenges.

In the absence of adequate support, 83% of students have sought financial support by other means; a third are using credit cards, 24% have turned to buy now, pay later credit schemes, and 12% have taken out bank loans. While 53% of students have turned to their families and friends for financial support and 40% have reached out to them for loans, a third say the cost-of-living crisis has affected those who support them.

However, there are steps that students can take to ensure their financial wellbeing and help make it through university with a little more extra money in their pocket.

5 tips if you’re worried about money at university

1. Create a budget Creating a budget based on what money is going in vs the money you have going out can help you feel more confident about starting university or college. Having a budget doesn’t mean your money worries will all be sorted, but it means you have a plan so that you always know where your money is going rather than wondering where it went.

2. Look into financial assistance Most institutions offer financial help to students facing financial difficulties. This support may come in the form of bursaries, scholarships, or hardship funds.

Scholarships do not require repayment, making them an invaluable resource for students seeking to alleviate the cost of their education. Bursaries, on the other hand, are typically need-based awards that aim to support students facing financial hardship. They may cover tuition fees, living expenses, or specific educational costs.

3. Part-time work opportunities Getting a part-time job is a great way to supplement your income while at university or college. Your institution will generally have job portals or career services that list part-time opportunities on and off-campus which you can have a look at.

You can also freelance while studying. Whether you’ve got writing, coding, digital skills, or anything else that’s in demand, you can monetise your talent. You might want to look at sites like Fiverr or Upwork. While working part-time can provide financial relief, it's also important to maintain a balance between work and study to avoid burnout. Most students find between 10-20 hours of work a week is doable while studying.

4. Save on accommodation According to Blackbullion, 70% of students are worried about not being able to afford rented accommodation. If you’re debating student halls vs private renting, it’s important to weigh up the pros and cons. Some student halls are all-inclusive, which helps you save in other areas such as meals and heating. However, living off-campus in shared housing is also a good option.

5. Take advantage of student discounts There are tons of student discounts available in the UK. From travel and food to entertainment and shopping, student discounts can help you save money on everyday purchases. Many places offer discounts simply by showing your Student ID, so always ask.

Get expert guidance on financial wellbeing with Health Assured

It’s important for all students experiencing financial anxiety that you get the right support. We offer expert guidance on financial wellbeing and how to manage your finances, budgeting, and in-the-moment counselling support.

When the time feels right, you may feel the need to reach out for emotional or practical support during your time as a student. Health Assured know how difficult it can be to take those first steps. Our qualified and experienced counsellors are ready to listen and provide guidance. 

For more information see our article How to support financial wellbeing in the workplace

The Student Assistance Programme (SAP) is available 24/7, 365, so help is always available, at a time which suits you.