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Budgeting Basics: Tips for Parents and Students
To help with important life lessons around managing finances and budgeting there are a few things you can do to help them manage their money wisely. Here are some tips for managing student finances:
- Encourage them to outline their income and expenses and set weekly budgets for things like food, entertainment and travel based on what is left over when their fixed costs have been spent (e.g. budgeting for rent and bills)
- All-inclusive student housing like Collegiate UK offers, which covers rent, bills, wi-fi and contents insurance makes budgeting that little bit easier as it consolidates some of the monthly outgoings.
- Research budgeting apps that help to track spend and highlight what’s left for the week/month – a simple spreadsheet also helps to track spending but won’t give you the alerts and real-time updates that you can get with some of the apps
- It’s probably the first-time budgeting for university students, so practical tips to help make their money go further is a great way to help them. Give them some advice on planning meals – this is a great way to streamline food shopping and by utilising reward cards, vouchers and discounts at supermarkets through loyalty cards they can make their budget stretch further.
- In addition, students are eligible for a wide range of discounts at many places including high street retailers, cinemas, travel etc.
- Encourage them to put some money aside every month – even a small amount. Even with the most careful monthly budgeting there are always unexpected costs and helping them to provide for a contingency fund for these types of scenarios can help to prevent financial stress.
- Help them to consider a part-time job – it can provide extra income and experience – just ensure this doesn’t interfere with studies
- Help them to become financially aware – talk to them about credit cards and loans. Being aware of repayment terms, interest rates and debt is essential.
- Being realistic about social spending is important. University life is an enjoyable time with lots to experience.
Supporting them in this learning process and helping them to build strong financial habits that will set them up for their university life and beyond is a step toward greater independence and long-term financial stability.
How Loans and Grants Relate to Accommodation Costs
A maintenance loan will help your child pay for their living expenses during their time at university and is designed to be used for things like rent, food, books, travel, and other living expenses. They will need to apply for this each year they are at university and it’s worth noting it’s reduced in their final year as the loan no longer applies once the course has finished. The loan will need to be paid back, but this is deferred until your child has completed their course (or leaves their course if for any reason they leave before the end) and their income levels are over the repayment threshold.
The maintenance loan needs to cover a lot – rent, utilities, living expenses, travel, items for study etc so encouraging them to recognise value for money is a useful skill. When they are looking at accommodation costs to add in to their budgets, they may want to consider purpose-built student accommodation for university students as an option for getting them to understand what’s included. All-inclusive rents that include unlimited use of Wi-Fi, utilities, shared spaces etc takes a headache away from financial planning.
Choosing affordable student accommodation in the UK helps to make them most of the available funds, and ensuring they have inviting and comfortable social spaces in their accommodation means they can spend time with friends in an enjoyable environment even if they can’t afford to go out!
Maximising Grants and Bursaries: What to Apply For
When it comes to student funding there are many options available that don’t need to be paid back (unlike the tuition fee and maintenance loans) and its worth considering grants and bursaries for university students. Additional funding may be available depending on specific circumstances and criteria and while there is no single place to look for this and apply for it, it’s definitely worth putting in the time to research this if your child falls into one of the following criteria as they may be eligible:
- Students from a low-income household
- Students from under-represented backgrounds
- Disabled students
- Care experienced students
- Students on certain courses e.g. music, arts, sport
- Placement year courses
- Non-UK student
As a first step it’s worth looking at your chosen university to see what funding they offer to students and the criteria on which it is set. This shouldn’t be the deciding factor on which university to choose but it’s worth adding in to the mix if extra funding is needed.
Charitable groups are also a source if financial support where a student’s personal circumstances align with the charity’s work. For example, organisations that support and promote the rights of disabled people may be able to offer financial help (or free access to products and services you would usually pay for) to those who wish to access higher education.
Sponsorship or scholarships may also be routes to additional funding often earmarked for aspiring talent or to attract groups who are traditionally underrepresented in their field (e.g. women in STEM fields).
Saving on Accommodation Costs with Collegiate
Moving into a Collegiate UK property gives you a clear and transparent outgoing with the all-inclusive cost which covers rent, bills and amenities in one cost.
You get all the upside of halls of residence or private housing but with well-designed spaces and communal areas for socialising with friends and comfortable ensuite rooms for quiet time and study.
All-inclusive student housing with Collegiate UK doesn’t just cover the rent and bills. With contents insurance and wi-fi included too it’s a few less things to sort out before your child heads off to university and one less thing to budget for. The cost also covers the onsite security, resident teams, social events held in the building and access to all on-site facilities – which can include cinema rooms, games rooms, gyms, roof terraces and more. With so much included in the cost, it represents value for money and affordable student accommodation in the UK.
The sooner you can book the better, as popular accommodation does get booked up. Additionally, you may be able to take advantage of early booking discounts to help the budget stretch that little bit further or maybe it will allow you to upgrade your child’s room choice.
Tips for Parents: Supporting Your Child’s Financial Journey
Parents find it hard to send their children off to university to live independently as there is so much to prepare them for and managing their own finances is a big learning curve.
Supporting them in the lead up to going to university by preparing them to learn about managing student finances will help. Understanding the basics like weighing up income versus outgoings will help them to see what is and isn’t affordable. Once they have worked out their outgoings and know what their financial commitment is a month, they can start to budget for their variable costs – entertainment, birthday gifts, travel back home etc. It’s also worth getting them to look at a small saving pot – to help with any unexpected costs that may arise. Having some money set aside will help to ease any financial stress.
An all-inclusive cost for rent, utilities, WIFI and contents insurance removes some of the headache from budgeting and it helps to have a fixed amount every month so that they don’t need to worry about any rising costs and how that might affect them.
There are some great free budgeting apps available that can help them to track their outgoings, categorise their spending, see upcoming payments and calculate how much they have left for the month. Encouraging them to regularly check their spending habits and living within their means will reduce any financial headaches from overspending.
When it comes to university finance advice for parents, the most important thing is to have open and honest communication about money and financial responsibility.
Useful Resources
- Gov.uk to search for bursaries, scholarships and hardship funds – https://www.gov.uk/extra-money-pay-university
- Gov.uk to search for charities that may be able to support your specific criteria – https://www.gov.uk/find-charity-information
- Useful information on other types of financial support on the UCAS website