The importance of budgeting

Apr 15, 2020
2 min read

Updated: Jul 22

With university fees at almost £10,000 a year, plus living costs on top, the prospect of committing to three or four years of study can seem as if the financial burden outweighs the benefits. But graduates earn more than school leavers, and repayment terms are linked to earnings, so it can be a worthwhile investment.

Useful tips to help your child manage their finances

Teach them how to budget. If you’re supporting them financially, don’t budget on their behalf by paying bills directly or limiting their money to a weekly allowance; in the long run, it won’t help them. Teach them how to budget for rent, bills, course materials, food and entertainment, so they understand what expenses are coming up and how to put money aside to cover the cost of living. A student budget calculator (many universities and student finance sites offer one) can help with this.
Make sure they apply for student discount cards, such as a TOTUM card (formerly the NUS card) and a 16-25 Railcard.
Encourage your child to find part-time work, ideally during the holidays, but in term time too if money is a significant issue. However, make sure they’re not neglecting their academic studies; research shows that working more than 20 hours a week during term time can have a negative impact on academic performance.
Encourage your child to speak to a student money adviser at their university.
Give your child money-saving tips, such as buying non-branded food and attending free social events.
Speak with your child’s bank about extending their interest-free overdraft.