Budgeting, student loans and finance tips for university freshers – and their parents

This year’s crop of freshers have either started university life now or will in the next couple of weeks, and it is likely to be the first time most have had to manage their own money.

An underrated aspect of going to university, particularly away from home, is properly managing a personal budget to cover accommodation, food, travel and a heavy helping of socialising.

It is not always an easy thing to do, but following a few smart tips can get you a long way towards success.

As with many things in life, planning and preparation are a big part of it. So even if you are not going until next year, it isn’t too early to give it some thought.

Set a term-time budget before you start

According to Tamsin Powell, consumer finance expert at Creditspring, setting out a strategy in advance is key.

“Plan around your student loan and known costs,” she said. “Use free apps to track spending across categories like food, rent and nights out.

“Get clued up before making any financial decision. Don’t rush into opening a credit account or taking out a loan without understanding how it works.

“There are loads of free resources out there, from student unions to tools like Creditspring’s Benefits Finder, that can help you understand your options and avoid the risk of high-cost debt.

Ms Powell also suggested students start building up a financial cushion by saving a set amount each week that is only tapped into for essential items, such as course materials or emergency expenses.

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Don’t spend your loan as soon as it arrives

Sophie Graham, a personal finance expert at Sunny credit brokers, warned against the temptation to splash out as soon as you see some money hit your account.

“When your first student finance instalment arrives, it can feel like a large amount of money, but it usually needs to last until the next payment, several weeks or even months away,” she said.

“It's easy to treat it as spending money in the excitement of the first few weeks, only to find yourself short before the end of the term.

“Working out roughly how much you have to spend each week can help your loan last the whole term.”

Don’t sign up for everything

Ms Graham noted that freshers week can present many opportunities to get involved in different clubs, societies and events. This is obviously great, but only up to a point.

Nearly everything you sign up for will have a cost attached, so be selective and avoid overcommitting.

“Freshers' week is full of stalls, offers and sign-ups, from gym memberships and society fees to subscriptions and free trials that quietly turn into paid ones,” she said.

“It's easy to commit to things in the moment that you may not use once the term settles down. Taking a little time to think about what you'll genuinely make use of can save you from paying for memberships you've forgotten about by October.”

And a tip for parents

It’s not all about the students, either. Recent research suggests the wider family are having to bridge the gap between students’ income and outgoings; a 2026 survey from Save the Students found parents still contribute an average of £132 per month, though this is lower than previous years.

Even so, it can be worth setting expectations around how much financial support will be available, says Nikita Sun, chief strategy officer at social app Zymix. “If you’re helping with rent, food or travel, be clear whether it’s a regular contribution, an emergency safety net or a loan. That makes it easier for young people to budget around a known amount,” Ms Sun suggested.

Zymix’s own research showed more than a quarter of Gen Z adults (27 per cent) said they spent more than they expected to when first moving out, highlighting the importance of having a backup plan available.

Ms Powell, meanwhile, noted the positive impact the right kind of quiet chat can have before your offspring heads to university for the first time.

“If you’re sending a child to university, now’s the perfect time to sit down and talk through the basics; how interest works, what good credit looks like, and how to spot a bad deal, especially ahead of the fresher's fair,” she said.

“The money lessons they take with them now will shape how they borrow, budget and save for years to come.”