When it comes to financial mistakes, the best thing to do is learn from someone else’s mistakes to avoid making them in the first place. So, here's a guide to some common financial mistakes students make and how you can sidestep these pitfalls to focus on enjoying your university experience.
Updated: 23 Jan 2025
You’re in a new city, and there’s a whole new world of pubs, clubs, bars, and shops to explore. We get it — it’s easy to get carried away, and while treating yourself is fine, overspending on non-essentials can quickly deplete your funds.
How to avoid it:
Create a monthly budget and try your best to stick to it. FYI, this is going to be the most common piece of advice in this article. It will come up a lot, because it’s just good practice and will continue to improve your life after you leave university.
Allocate a reasonable monthly budget for socialising, shopping, and eating out, and let this guide your activities.
Knowing where you can save money at the start of term will give you more money to spend every single week of the year. Simple.
How to avoid it:
Register for a TOTUM card early and research all the relevant discount options in your city.
Always carry your student ID for unexpected deals.
Don’t be shy to ask if a student discount is not advertised.
Get a student rail card. It will probably pay for itself before Christmas.
While certain expenses are costs that unfortunately must be eaten, one area where significant savings can be made is food. Takeaways and convenience food costs can quickly add up, but with a bit of intelligent planning, you can eat better quality food and spend less.
How to avoid it:
Plan weekly meals and create a shopping list before heading to the supermarket.
Don’t grocery shop when you’re hungry.
Anticipate your schedule, and carry snacks so you buy fewer expensive on-the-go meals.
Shop at budget-friendly stores like Aldi or Lidl.
Explore apps like Too Good to Go or Olio.
Cook in batches and freeze leftovers to save time and money.
A very common mistake is spending too much in Freshers’ week, only to struggle later. Without a long-term budget, it’s easy to run out of money.
How to avoid it:
Make a weekly budget instead of a monthly one.
Don’t forget bills and subscriptions. Set up direct debits or standing orders for essential payments, and review your subscriptions regularly to cancel ones you don’t use.
Track your spending over weeks and months, to highlight areas where savings can be made.
Unexpected costs, such as a broken laptop or an emergency trip home, can catch you off guard. Without a small savings cushion, these expenses can lead to unwanted borrowing or missed opportunities.
How to avoid it:
Set aside a portion of your income into a savings account each month.
Aim to save at least £100-£200 as an emergency fund.
Try to avoid dipping into this fund unless it’s a genuine emergency. This is tricky, but builds healthy discipline that will benefit your future self.
It’s easy to feel embarrassed or anxious about discussing your financial situation with your family, peers, and new friends, but the truth is that sharing information and cost-saving tips benefits everyone. Don’t miss out on opportunities to get good advice or give it to others.
How to avoid it:
Speak openly with your parents or guardians about your financial needs.
Share tips with friends, and initiate discussions on budgeting and money management.
Seek advice from your university’s financial services team
Think about it this way; If you are about to start university, then you are already in a great position, because you haven’t made any of these mistakes yet. Chronic financial woe is a special kind of misery, so be proactive, make a budget, apply these tips to stay in control of your student finances, and have a blast!