How to save for university

Preparing for university is an exciting yet undeniably expensive time. From tuition fees and living costs to prepare for, as well as saving for all the necessary move-in essentials, there are various expenses to bear in mind.

Our guide delves into these costs and offers some top money-saving tips for you to implement in the run up to university.

Expenses associated with university

We all know that studying can be expensive, but exactly how much does it cost to go to university in the UK?

1. Tuition fees

Up first we have tuition fees, which when studying in England, set you back around £9,250 a year. So, if you sign up for a three-year undergraduate course, you’d need to apply for a student loan which covers up to £27,750.

We’ve got a guide on all things student debt which delves into the ins and outs of tuition fees, repayment plans and interest rates, as well as the further costs associated with studying.

2. Housing costs

Next up we have housing fees, another large cost associated with university. Many students opt to take out a maintenance loan to help cover accommodation fees, and these can range from between £4,000-£8,000 yearly.

Each university will offer different accommodation options, and there’s also the choice of off-campus private accommodation to bear in mind.

3. Living expenses

There are also general university living expenses to factor in, such as food, utilities and travel costs. Plus there are moving costs to consider, as well as course materials which might be required.

Equally, there’s the social and extracurricular activities you’ll want to ensure you budget for.

How much does university cost parents?

If able, it’s not unusual for parents to help out with university expenses too. From moving expenses to general living costs, there are various ways in which a parent/ guardian might choose to offer financial help.

So, if you’ve got school-aged children who might have university on the horizon, it’s never too early to start a dedicated savings pot. We’ll dive into some top savings tips shortly, which are great for students and parents alike!

Goal setting to establish achievable targets

If you’re hoping to save some money before you head off to university, it’s important to set some realistic goals. Many people find the SMART savings technique helpful, so we’ve outlined the basics of it below:

• Specific: establishing specific goals is key, as when goals are clearly defined, you’ll be much more motivated to achieve them.
• Measure progress: you should also aim to keep track of your progress as another way to boost motivation.
• Achievable: you’ll need to carefully think about what’s going to be achievable in a particular timeframe. For instance, if you’re leaving for university in a few months, while you might not be able to save a substantial amount, you’ll certainly be able to make a start!
• Realistic: ensuring goals are realistic is key, for instance if you currently work part-time, how much are you realistically going to be able to put away monthly?
• Timeline: setting a timeline is another great way to boost motivation. For instance, ‘I’d like to save X amount before I head to university in September’.

You might want to take a look at our guide: how much can I save in a year? This offers actionable strategies which you can implement to boost your savings in just 365 days.

Income boosting strategies for students

If you’re a student (or perhaps a soon-to-be student), here are some ways in which you can boost your income and work towards building up a healthy savings pot.

1. Part-time jobs

In the run up to university, many people choose to work part-time in order to save up. Plus, many students have part-time jobs alongside studying to help with costs.

Popular student roles include working in hospitality, retail, and tutoring. And many students secure jobs within the student’s union itself. This is a great way to earn some extra cash and immerse yourself within university life.

While university life can be busy, if you can comfortably factor in some part-time hours, it’s a great way to earn some extra cash. Equally, you’ll have additional experience to add to your CV, which is a real benefit when it comes to the post-uni job hunt.

2. Selling unwanted items

Still wondering how to save money as a student? Well, a great way to start a savings pot is by selling your unwanted belongings.

Perhaps start by decluttering your wardrobe and removing any unwanted items. Then simply get them listed on a site such as eBay and begin selling! Unwanted books and electricals are equally as sellable online, so commit to a thorough clear-out to make some extra cash.

Top budgeting tips

To ensure you don’t run out of money, budgeting is a skill you’ll need to master in your student years. So if you’re wondering how to budget as a student, let’s dive into it:

• Identify your income: first thing’s first, you’ll need to identify exactly how much money you have coming into your account. This could be from a maintenance loan, any part-time work, or perhaps payments from grants or bursaries.
• Identify your outgoings: next, it’s time to identify your essential outgoings such as your rent, bills, and food shops. Then subtract this from your income to see how much you’ll have left over for enjoyment and savings.
• Cut back on unnecessary expenses: while it’s important to budget for enjoyment, it’s also important to cut back on excessive overspending. For instance, if you’re ordering takeaways multiple times a week, you’re bound to save some money by cooking a homemade meal every once in a while.

Many students choose to download free budgeting apps for tracking their income and expenses. Some popular apps include Squirrel and Walls, both of which are great for tracking spending habits.

The best savings accounts for students

We understand that saving whilst at university might be tricky, but saving a little is better than saving none at all. If you put away just £5 a week, that’s £20 a month, and £240 by the end of the year! You could then use this money to purchase your second-year essentials.

If you’re wondering where to save your money, here are a few of the most common options:

• Easy-access savings accounts: you can pay in and withdraw money whenever you please. However, these do tend to have lower interest rates.
• Fixed-rate savings accounts: These offer slightly higher interest rates, and you’ll be required to lock away your money for a certain time period.
• Current accounts: some current accounts come with savings accounts as part of the package. You can easily transfer funds between them, usually through your online banking app. Many students also choose to open a student current account, as these usually come with added benefits and offers.

Remember to research financial aid options

As well as loans, there are additional funding opportunities which you may be eligible for including scholarships, bursaries, and grants.

Each university will offer their own scholarships, and many professional associations offer them too. These are usually designed to help with tuition costs, housing fees, or equipment fees. So, it’s definitely worth doing your research to assess your eligibility.

Saving for university requires careful planning, budgeting, and dedication. But if you stick with it, you’ll be able to build up a healthy savings pot dedicated to your university years. Simply start early, and stay committed!

Before you go, remember to head over to the Moneyboat blog where you’ll find plenty more guides. These include: can applying for online loans damage my credit score? And should I get a loan?