If you’re preparing to head off to uni, the cost of living has probably crossed your mind. We asked top finance influencer Poku Banks to share his advice on how to manage your finances when you arrive.
1. Work out how much it costs to be you
Everyone spends money differently and just because you’re living on a student budget, it doesn’t mean you have to give up the things that make you, you! If it’s a priority for you to join the gym, get your nails done or go out with your friends every week, then you should still do those things. You just need to be realistic about how much you’re going to spend, budget for the things that make you happy and cut back on things that are less important to you.
2. Treat your finances like football
Just like in football, it’s important to both attack and defend. Think of defending your finances as saving money and being careful with how you spend it i.e. budgeting. But, you can’t win the game just by defending, you also need to attack. Attacking your finances means being proactive and earning some extra money to add to your income. This way, you’ll be playing the perfect game and should have money to spend, and money to save for when you need it.
3. Start your side hustle
Before you even start uni, think about what skills you have and how you could use them. If you’ve got good people skills, start looking for student jobs on campus or retail opportunities near your uni. If you’re creative, could you sell your creations online or offer your services to people you meet?
4. Follow the 50/30/20 rule
Dividing your income into chunks of 50/30/20 can help you make sure you’ve got money to cover your needs and wants. 50% of your money goes towards necessities like food, 30% goes towards luxuries, like a takeaway, and 20% goes towards savings and investments. Budgeting 30% of your income for those treats or social activities means you can still enjoy yourself, but you won’t go overboard. The extra 20% of your income is saved for those more expensive months and future investments.
5. Spice up your food shop
YouTube and TikTok are your best friends to get some go-to cheap recipes under your belt. There are tonnes of creators out there who are teaching students to make budget friendly recipes so you don’t have to eat beans on toast every day. Planning what you’ll eat is key to not overspending when you’re in the shops. Plus, spicing up the food you eat will mean you’re less tempted to order a takeaway!
6. Make the most of student discounts
Unidays is the app all students need to have on their phones! It’s loaded with discounts on clothes, restaurants, tech and social activities to help stretch your budget that little bit further. If you’re shopping and don’t see the discount you want on the app, just ask if they do student discount, most places do.
7. Start saying no
Uni is a time to make the most of all the exciting opportunities that come your way, but it’s also a time to learn the important lesson that it’s okay to say no. Sometimes you might have to make a sacrifice, be sensible and say no. Don’t splurge just to feel included if you can’t afford it, there’ll always be another chance to go out or get that thing you want later down the line.
8. Always plan ahead
If you are going out, having a plan will always save you money. Instead of just heading out the door, think about where offers student discounts, where has 2 for 1 drinks, how late can you get the train home to avoid paying for a taxi? Having a plan will without a doubt save you some money so you can still go out without blowing the bank.
9. Put your savings away first
One big mistake people make when they get paid or receive their student loan is not putting some money into their savings straight away! Leaving the money in your normal bank account gives you permission to spend that money and risk having nothing left to save. Put your savings into an account at the start of each month, so you only dip into it if you really need to.
10. It's cool to talk about money
Finally, don’t let money make you anxious. If you’re feeling worried about finances and budgeting at university, then talk to someone. Talk to your friends, family or the staff at university. Sharing your anxieties can lift a weight off your shoulders and gives people the opportunity to share their top budgeting tips with you.
For more tips from Poku, check out his finance episode of 'BCU's Get Ready for Uni podcast' and follow him on TikTok @pokubanks.