Saving Money For University: Everything You Need To Know (With 8 Top Tips!)

College and university can be pretty expensive, and that’s even once you’ve paid for your course(s) outright! Take it from me – while living away from home is fantastic fun, the costs soon stack up, and in the age of never-ending inflation, it’s likely never been pricier to take up the college and uni lifestyle.

So, I’ve put together a quick guide on why saving money for university is a must, and what you should be stashing the cash for most of all. Keep in mind that any figures listed below are averages from autumn 2022 – I’ll come back and change them if there are any dramatic shifts in the meantime!

Why should I save money for university?

You’ll pay for more than just your course and lodgings when you go to university in the UK. Thankfully, for many people, student loans and grants can take care of much of the overhead cost. But, you’re going to likely be funding yourself for the first time, which means your parents or guardians might not always be around to foot your bills for you.

You may need to pay for:

• Rent
• Any books or reference materials not covered by grants
• Travel costs (petrol, diesel, buses, trains, taxis etc.)
• Gas and electricity bills
• A TV license
• Broadband and mobile bills
• Food and drink
• Household products
• Entertainment (nights out, takeaways, etc.)

When you save money for university, you’ll feel much more confident making everyday decisions. I don’t suggest you watch every single penny going out of your account unless you really want to – but planning ahead for large or regular expenses is wise.

How much does university cost in the UK?

University costs in the UK will vary depending on the educational body you enrol with, your personal circumstances, and where you choose to stay.

Based on the average cost of living, you can expect to spend roughly £20,000 per year studying in the UK. This doesn’t include loans or grants, of course, so don’t get too frightened!

However, it’s worth remembering that cost of living in the UK is still rising at the time of writing. I’ll update you as and when this changes, or at least when things start looking a bit cheaper.

There are a few clever ways you can offset some of the bigger costs of university life. You can, of course, start saving money before you start your first year. However, it’s also a good idea to make smarter choices about where you’re going to live, and what you’re going to do.

For example, first-year students (or freshers) may save money living in halls of residence, arranged in partnership with their university, compared to renting with a private landlord. It may even work out cheaper for you to live in halls than to commute from your parents, too (plus, you can expect a ton more freedom).

Here’s a quick breakdown of what you might expect to pay when considering the UK university lifestyle in full.

Tuition fees

The tuition fee cap for universities in England, Scotland and Northern Ireland is £9,250 each year for undergraduates. For Welsh undergrads, you’re likely to pay a maximum of around £9,000.

If you go beyond undergraduate study in England, you may find tuition goes all the way up to £11,000. These are big figures to consider!

Student finance companies (such as Student Finance England) can cover the whole cost of your tuition in many cases. However, you’ll need to pay this back over the years you work leading up to retirement, with interest applying each year.

Private universities and colleges may not receive full loan coverage, so be sure to check with your establishment and loan provider.

Living costs

Living costs are tricky to work out for the average British student, but around £10,000 per year in expenses is a generous estimate. Again, this may increase depending on your circumstances. For example:

• Are you renting privately?
• Do you run your own vehicle?
• Do you have children or other dependents?

Depending on your household income, you can receive maintenance loans and grants from the government. There’s information over at GOV UK regarding how this means-tested system works. If your household earns more than £25,000 per year, your potential loan amount will likely decrease.

You can also apply for non-means-tested loans, which don’t take your household income into account. However, these amounts will likely be much lower than your means-tested potential.

Again, a great way to offset living costs in that first year of university is to save up! £10,000 is a large target, of course – which is why coupling savings with a loan or grant might just be your saving grace.

What makes up university living costs?

The National Student Money Survey (2022) states that rent is the biggest drain on student money. It’s likely to cost just over £400 per month.

However, you also have to factor in more than £60 for bills, another £60 for going out, and likely at least £50 for travel. Course materials, mobile bills, clothes and other miscellaneous costs add up to more than £170 each month.

That’s a lot to account for, and these costs will vary depending on where you study and live. Study close to London, and you may even expect double the costs described here.

Again, maintenance loans and grants can help you navigate the first few months of costs, but you may find you need a little bit of extra cash to really enjoy uni life with. That’s where saving comes in – a frugal lifestyle will help your savings go a long way!

How much does the average student spend on food?

According to the National Student Money Survey, groceries cost around £110 per month per student. Eating out is also likely to cost you another £50, which means a total of £160 per month. This matches with the £130-140 range for the average grocery bill for an adult in the UK.

As we close out 2022 and head in to 2023, with the high inflation figures we have experienced and will likely face in the coming year as well, I would expect a safe bet would be to increase those data points by at least 10%. This means that your monthly food budget in 2023 should be at least £121 to £170. This works out to around £28 to £40 per week on food.

Unfortunately, this means that old thumb rule of using £20 a week on the food budget is outdated. You can try and minimize your food bills by reducing your eating out and adopting some smart money saving tricks on things like food shopping!

8 Ways for students to save money

The following ways to save money can help you to build up a reliable cushion so you can not only part-fund your first year at university, but so you can continue to pay for it while you’re there! Not all will apply to all circumstances, but give them a try!

Choose a student bank account

In case you need it, set up a student bank account with a 0% overdraft. This should see you through your first year or so of university, with interest rates swooping in thereafter. It’s good to have a cushion, but budget wisely.

Don’t save with credit cards

Credit cards seem quick and easy to manage when you’re frivolously spending! However, they can arrive with interest rates and demands that you may not be able to stick to. Take it from me – choose a student overdraft instead.

Compare, compare, compare

Don’t just leap into a mobile, broadband, or Sky TV contracts because you get the flashiest new device. Compare monthly rates and try to consider your usage. Mobile data is more precious to smartphone users these days, as you can always call people through FaceTime or WhatsApp, for example.

Claim student discounts

Plenty of online retailers, restaurants and high street stores give student discounts away – just make sure you have your student ID to hand. You can expect 10%-20% in savings in some cases – so start looking around.

Get covered by insurance

Your parents’ insurance might not cover you for everything, especially if you have your own private accommodation. Compare contents insurance providers to avoid shelling out for costly repairs and replacements.

Budget carefully

Budgeting might not seem the most fun exercise ahead of going to uni for the first time, but it’s vital if you want to save as much cash as possible. Think carefully about what you’re likely to need in groceries, what you may need to spend on course materials, and how much travel eats into your monthly allowance.

Keep small change handy

In the day and age of contactless payments and e-wallets, it’s a wonder any of us have spare coins and cash available at all! However, if you do ever come back from a night out or a trip to the shops with change spare, keep it piling up in a designated pot or jar. It’ll soon start adding up, meaning you can put it towards future treats.

Learn to skim

Skim saving is all about taking a small amount off the top of a little income and immediately saving it away. For example, if you receive a maintenance grant or a little money for Christmas, etc, try and save around 10-20%. You never know when this might come in handy, and you’ll be glad you put just a little aside here and there!

Conclusion

Let me make it clear – saving for university isn’t always easy, and most students will rely on tuition loans and maintenance grants to some degree. That’s not to say you can’t give putting pennies aside a good try.

Take a look at some of the tips I’ve listed above before you go, and while you’re studying. There’s no reason why you should ever spend your university life worrying about money – so make sure you adopt a few healthy habits before you start!

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