Life for students is tougher than ever in terms of finances and managing money. Living costs are rising, tuition fees are significantly higher than for previous generations, and it’s hard to get jobs that cover accommodation costs and everyday expenses. Working towards financial goals may seem impossible, but there are ways to make them more accessible. Here are some top tips.
Saving for your own home
Studies show that the average time needed to save for a deposit for first-time buyers has hit over 10 years. Many young people want to become homeowners, but it’s increasingly hard to save money and get an affordable mortgage.
If your main goal coming out of college or university is to get onto the property ladder, it’s worth trying to save as much as possible now. This is easier said than done, but making simple changes can help. Analyse your bank statements and look for areas where you can make savings. Boost your income with part-time or casual work that fits around studying and monitor spending. Small things like cancelling TV subscriptions or splitting costs with roommates can help. Transferring money to a savings account regularly is another good move. If you keep money in your current account, you’ll be more likely to spend it.
Another important step is to start searching for properties and get advice from estate agents. You can benefit from local guidance you can trust to gain access to available houses and flats sooner, get advice about mortgages and first-time buyer schemes and use expert help to navigate legal processes. It’s important to be clear about how to buy a property, how much it costs, how long it takes and what’s involved. This will save you time, stress and money when you come to buy.
Paying off student debt
The average UK student who finished their course in 2024 had debts of over £50,000. Many students leave university hoping to build credit and clear debts quickly. The best way to do this is to start earning as soon as you graduate, but it’s crucial to note that you don’t have to start paying your student loan back until your income hits a certain threshold. If you have other debts, such as personal loans or credit cards, clear these first.
There are many ways to tackle debts, including paying off high-interest debts first, saving money each month to pay off credit cards and loans and consolidating debts. If you can’t meet repayments, or you’re relying on credit to survive, seek expert advice. Debt advisers can help you manage your money, organise your finances and get help with dealing with creditors and reducing your debt burden.
Buying a property and clearing debt are two of the most common financial goals for students. Both can seem impossible in the current climate, but there are ways to make these targets more achievable. Key steps include researching first-time buyer schemes, saving as much as possible for a deposit and working with experienced firms to find suitable properties and get help with the buying process. To clear debts, it’s wise to focus on high-interest debts first, seek financial advice if you’re struggling to manage your debts and boost your earnings as soon as you graduate.
