Dear students: Here's how to get smart about money and save yourself stress later on

Scan your social circle and you’ll notice a range of approaches to money matters. Some splash the cash, others never get a round in. Some talk about it, others brush big worries under the carpet. Just like other parts of life that need balance – studying, partying, romance – it’s wise to take a considered approach to money. Treat it right and money can enhance your life, rather than become a worry. And the sooner you start actively thinking about your relationship with money, the easier it is to spot and stop bad habits.

What should you be on the lookout for? Here are a few pointers for a healthy relationship with money.

Consider your current attitude to money

A bit of self-reflection is a great place to start, so notice what your habits are now. How do you feel about dealing with your finances? How do your parents treat money? Do you think that’s rubbed off on you? If you owe someone money, do you pay them back as soon as you can, or do they need to remind you? If you need reminding, what is it that stops you from paying them back as soon as possible?

Consider whether there’s a gap between where you are now and the goal of a healthy, proactive attitude to finances.

Give it the time it deserves

When life is busy, we inevitably have to prioritise. And let’s face it, everyone prefers fun, pursuing our interests, being social and chilling out over life admin like sorting out money matters. That’s absolutely fair. But there’s also a long-term benefit to regularly staying on top of your finances.

Etch out an hour a month to check if your bills are paid, what’s going in, what’s going out, and your budget for the next month. You could save yourself time, money and stress in the future – leaving you more resources for the good stuff.

Practise budgeting

Even if you don’t immediately need to worry about it, being able to look after your cash prudently is a good life skill to start building on.

While you’ve got time and space, in the background think about how you’re spending your money, whether you’ll appreciate the thing you’re buying and how much you’re swayed by how your friends spend. If your bank allows, you could set weekly budgets and see what it takes to meet them.

That way if your budget changes in the future, it won’t be a shock to the system.

Face up to bad news

Facing up to money problems is like facing up to the dentist: it’s difficult to muster the courage, but the longer you leave it, the worse it will get. So if you find yourself slipping into debt, try not to pretend it’s not happening – because that’s when the real problems start.

Instead, allow yourself to go through the ‘mustering the courage’ stage, but aim to do it quickly. Then start the ball rolling in the most effective way. It doesn’t have to be a drawn-out process – catch it early, and there could well be ways and means to nip it in the bud.

Where to get advice and help

• National Association of Money Student Advisers: Find advice for students in their Money Matters guide
• The Mix: Candid, honest info, 24/7 crisis support, useful apps and tools
• Mind: Covers all mental health issues
• Student Space: Mental wellbeing support hub from Student Minds charity
• Generation Rent: Advice, support and protection of private renters’ rights
• Turn2Us: Practical help for people struggling financially
• StepChange Debt Charity: Free advice and support
• Experian: How your credit score can get cheaper deals, plus advice on identity theft, credit and more
• Save The Student: Finance tips and student deals
• Citizens Advice: Support on everything from housing to debt to legal matters

Tap here to download the 2024 Student Life guide.

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