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Like late-night study sessions and cramming into a student kitchen to cook up meals, being savvy with money has long been part of the university experience. But with the cost of living remaining high, students are more money-conscious than ever.
“It is one of the most difficult times to make ends meet as a student,” according to Tom Allingham, communications director at Save the Student (STS). He says soaring prices for essentials, such as food and energy bills, have “disproportionately affected” students, while maintenance loans (intended to help cover day-to-day costs) have failed to keep up with high rates of inflation.
STS’s 2025 money survey found the average student spends £1,142 a month on living costs, but receives a maintenance loan of £640, meaning the £502 shortfall has more than doubled since 2020.
So what are the best ways to stretch your loan as far as it will go?
Split money across multiple bank accounts
Opening a student bank account comes with plenty of perks, from free railcards and large interest-free overdrafts to a welcome cash incentive that may come in handy during freshers’ week festivities.
But to stay on top of your spending, don’t keep all of your money in one place. Robert Medhurst, 25, who graduated this summer from Nottingham Trent University, recommends opening a separate digital bank account alongside your main student account, to split your maintenance loan into daily budgets.
Budgeting features on apps such as Monzo, helped him to visualise his finances and rein in his spending, which he found much harder to track when all of his maintenance loan was lumped into one account.
Setting aside money and placing a spending cap on the pots feature – one for rent and others for weekly food shops and nights out – “really allows you to see how much you’re spending and not go over”, he says. It can also help curb the urge for contactless spending.
Make a budget before move-in day
It’s common for students to find themselves tipping into their overdraft faster than expected. To avoid the burden of being in the red, start setting out your budget before you step foot on campus. Allingham suggests incoming students use time over the summer to work out “where the gaps will be in your budget – where potentially you might need to cut back, or where you might need to look for extra income”.
There are plenty of free tools available to help, such as online budget trackers. Soham Chougale, education officer at University College Birmingham Guild of Students, created Your Friendly Guild Budget Buddy to help students keep their finances afloat amid the cost of living crisis. It includes features that help map out income and set saving goals, while offering information on where to access financial and mental health support in one place. “It realistically shows how a student would spend, rather than fancy budget planners which would have 10 other things that are not the top priorities,” says Chougale.
Research hardship funds and bursaries
If you’re experiencing financial difficulty while studying, applying for non-repayable hardship funds and bursaries offered by your university may help ease the strain. In recent years, some universities have doubled or tripled the amount of money in hardship support to students, while also widening the household income criteria for eligibility. Increasingly, says Allingham, institutions have “recognised that it’s not just people from the very poorest backgrounds that are struggling right now”.
For Medhurst, accessing a hardship fund “was a lifesaver”, helping to tide over part of his rent each term. “Don’t be afraid to ask and to look for it,” he says. “There’ll probably be something that you can apply for that can really save you a lot of money.”
Ask for a student discount
Whether stashed away in your wallet or slipped inside your phone case, be sure to keep your student ID on you. Discounts are a big bonus of student life so even if one isn’t advertised, don’t be afraid to wave your ID and ask.
Sign up to student discount platforms like UNiDAYS and Student Beans to enjoy exclusive 10% to 30% offers both in-store and online. Richard Jackson, head of content at Student Beans, says lots of chains such as YO! Sushi, Greene King and Pizza Express offer students in-store dining deals.
The key to securing great discounts, he adds, is to always plan ahead. Follow and set notifications for your favourite brands on discount sites, and keep an eye out for boosted seasonal deals around Freshers, Black Friday and Cyber Monday.
Start planning your meals
After a long day of lectures, it can be convenient to order a quick meal from Deliveroo or Uber Eats. But relying on takeaway services can add up quickly, totalling an entire week’s food shop in just a single purchase. Instead, 21-year-old Chloe Harmer, a third-year fashion marketing student at Leeds Arts University, found cooking compact meals in bulk to carry around between classes a cost-effective alternative. “I pop it in the fridge and then when I’m about to leave for uni the next day, put it straight in my bag and then that’s lunch sorted,” she says. “And I’d just repeat that most days.”
Before heading off to the supermarket, know exactly what you want. Medhurst researched affordable, simple recipes online and then planned his shopping list around that. “Otherwise you go to Lidl and Aldi just kind of choosing willy-nilly, basing it on what you feel like there and then and it can be very easy to overspend,” he says.
Splurge on discount nights out
You can have a good time without burning through all your student loan. Holly Nicholson, 21, who just graduated with an English literature degree from the University of Bristol, says the key to big nights out on a budget is putting aside in advance how much money to spend on drinks or entry to clubs. And, of course, she says there’s always the old student kitchen tradition: pre-drinking with your flatmates.
Don’t overlook student society socials, which often boast subsidised drinks or free (and fun) events such as film screenings. If you’re a film or theatre devotee like 24-year-old Finola Clarke, an MA journalism student at Goldsmiths, signing up to student memberships at independent cinemas, weekly lottery queues for discounted theatre tickets and scavenging sites like TodayTix and the Stagedoor Rewards app offer some “ways to do what you enjoy at a significantly lower price”, she says.
“You’re in a really weird and hard-adjusting time of your life, don’t put too much pressure on yourself,” says Harmer. “Still have fun, but just be aware of what you’re spending.”
