It’s easy to buy a new pair of shoes without a second thought or spend money on a Friday night takeaway. When at university, experiencing newfound freedom is exciting, but if you’re not careful, this will lead to costly mistakes. Here are some common money mishaps students make and how to avoid them.
Ignoring a Budget (Or Not Having One)
Give yourself a weekly budget, as not every week looks the same. On a week when your bills are due to be paid, your budget might be much lower compared to other weeks. If you’re unsure of how to come up with a budget, categorising your spending can be useful. Many modern banking apps allow you to do this, so you can see where your money is going. Regularly review your spending to check if your budgets are suitable or need changing.
Spending Your Student Loan Too Quickly
Of course, it’s exciting when you open your bank account and see you’ve been paid your student loan, but you need to make it last. One way you can do this is by not spending too much on non-essentials. While it’s okay to treat yourself every now and again, cutting back can make a huge difference. By categorising your spending on a banking app, you can spot areas where you’re overspending.
Forgetting to Track Subscriptions and Direct Debits
Check your bank account and statements regularly, as this shows you when direct debits and subscriptions are due to come out, allowing you to be prepared. Doing this also highlights any subscriptions you forgot about, so you can cancel them. At the same time, ensure you have notifications turned on for your bank account so you know when payments have been taken.
Avoid “Boring” Bills Until It’s Too Late
Bills are costly, so it’s important not to ignore them. Start by making sure you’ve got all your bills sorted, such as having a TV licence (which is one bill many students forget about). If you sign up with The Student Energy Group, we’ll combine all your household bills into one monthly statement, which can be shared equally amongst everyone you live with, with no joint liability.
Don’t forget to look at ways you can attempt to lower certain bills. For example, you can use less water by taking shorter showers and fixing leaks to try to reduce your water bill. Discuss this with your housemates so you can all work together as a team.
Overspending on Food and Takeaways
Let’s say you grab a pastry and a coffee from a local coffee shop on your way to university, buy a hot meal from the canteen at lunchtime, and order a takeaway in the evening. This might sound easy and tasty, but spending on food adds up quickly. There are several ways you can avoid buying food when you don’t need to, like purchasing a loaf of bread, which allows you to make toast in the mornings and create sandwiches for a packed lunch. When getting a takeaway, pay only for your individual part and not anyone else’s, and make sure not to buy them too often.
Not Saving Anything (Even Small Amounts)
You may think saving money as a student isn’t possible, but just the smallest amounts can make a difference. Putting just £5 a week into your savings equates to around £20 a month, which adds up to even more after a year. Having savings creates financial security, allowing you to avoid debt and take care of unexpected expenses. Remember, only use the money in your savings if you really need to!
Not Talking About Money With Housemates
Because you’re sharing expenses, it’s important to communicate clearly and openly to avoid confusion or disputes. Regularly discuss your finances and tell anyone you live with if you have any concerns. This might include agreeing on how any shared expenses will be split and deciding on group budgets.
Learn More Money Saving Tips With TSEG Today
At The Student Energy Group, we understand the importance of being smart with your money. We’ll combine all your bills into one monthly bills package, including internet, gas, energy, water and TV licence. Once we’ve done this, you can split it equally between you and everyone you live with to make managing your expenses much easier. When you sign up with us, we’ll plant a tree – we’ve planted over 30,000 so far! Get a free, no-obligation quote from The Student Energy Group today to start saving.
