Student Money: Beyond the Student Loan
As tens of thousands of students across the UK celebrate their A-level results, the day-to-day costs of student life are probably not uppermost in their minds. But perhaps they should be. Research from Nationwide Building Society reveals that money mistakes dominate students' list of regrets, with six of the top seven mistakes related to money. From failing to budget and track spending properly, to overspending on nights out and relying too heavily on their overdraft, students are often ill-equipped to manage their finances.
This is where Erin, a 21-year-old psychology and cognitive neuroscience student at the University of Nottingham, comes in. Over the past two years, she has been giving Martin Lewis a run for his money when it comes to hunting down the best hacks, tips and tricks to save cash and earn money. From seeing Oasis for free to earning tickets to race days, making money from selling secondhand clothes, and enjoying cut-price treats with friends, Erin has mastered the art of student money management.
In this article, we'll explore Erin's money-saving tips and tricks, and delve into the broader implications of student finances. We'll also discuss the psychological and cultural factors that influence students' spending habits, and consider the future of student money management in an increasingly digital world.
Think in Hours, Not Pounds
One of Erin's key money-saving tips is to think in hours, not pounds. Before buying something, she works out how many hours she would need to work to pay for it. This simple exercise provides a reality check and makes her think twice about impulse purchases. For example, a couple of cocktails on a night out can easily be the equivalent of more than an hour's wages from a summer job. This perspective shift helps her prioritize her spending and make more informed decisions.
Volunteer for Freebies and Perks
Another of Erin's money-saving strategies is to volunteer for freebies and perks. She signed up with Festaff and Wicked Events, which recruit volunteers for festivals and one-day events. By volunteering, she gets into gigs and events for free, and often earns commission on any tickets bought via her links. This not only saves her money but also provides an opportunity to network and build her brand ambassador profile.
Turn Fashion into a Side Hustle
Erin also turns fashion into a side hustle. She snaps up quality pieces from charity shops and upcycles them before selling them on platforms such as Vinted. This not only saves her money but also allows her to express her creativity and earn some extra cash. By turning her fashion sense into a business, Erin is able to fund her passions and reduce her reliance on her student loan.
Look Out for Opportunities
Universities often have brand ambassador programs, and Erin took advantage of this by becoming a brand rep for a company that organizes days out at racecourses around the UK. By promoting events on her social media and sending links to group chats, she earned free tickets and transport to any events she promoted. This not only saved her money but also provided an opportunity to build her professional network and gain valuable experience.
Pool Rewards with Friends
Erin also pools rewards with her friends to get better value and reduce everyday spending. By combining discounts and deals, she and her housemates are able to enjoy cut-price treats without breaking the bank. This not only saves them money but also fosters a sense of community and shared experience.
The Broader Implications of Student Finances
The research from Nationwide Building Society highlights the financial pressure that today's students feel compared to previous generations. With rising living costs and increasing student debt, students are often ill-equipped to manage their finances. This raises a deeper question: what can be done to support students in managing their money more effectively?
One thing that immediately stands out is the need for financial education. Many students lack the skills and knowledge to budget and track their spending properly. Providing them with the tools and resources they need to manage their money effectively could help alleviate some of the financial pressure they face.
Another factor to consider is the role of technology. With the rise of digital banking and fintech, there are now more opportunities than ever for students to manage their money effectively. However, it's important to ensure that these tools are accessible and user-friendly for all students, regardless of their technical skills or financial literacy.
Conclusion
In conclusion, student money management is a complex issue that requires a multi-faceted approach. By thinking in hours, not pounds, volunteering for freebies and perks, turning fashion into a side hustle, and pooling rewards with friends, students can take control of their finances and make the most of their student experience. However, it's also important to consider the broader implications of student finances, and to work towards supporting students in managing their money more effectively.
Personally, I think that the key to successful student money management is a combination of financial literacy, practical skills, and a supportive environment. By providing students with the tools and resources they need to manage their money effectively, we can help them navigate the challenges of student life and build a strong foundation for their future financial success.
