YOU’VE spent years saving up to send your child to university only to get the dreaded call during freshers’ week: “Mum, can you send me more?”
So before you drop them off at their halls and say goodbye, read our money guide – we tell you how to make sure they NEVER run out of cash and need to come crawling back to the bank of mum and dad.
8
8
University is getting more expensive.
Student living costs have reached a record high, totalling an average of £10,227 a year, excluding tuition fees, according to research by Starling Bank – up 47% from £6,966 in 2016.
But the problem is the government maintenance loan, which pays for rent, food and living costs, doesn’t cover all their essential bills.
The average maintenance loan stands at about £7,588 – which means students are facing a £2,639 shortfall.
Although they can apply for bursaries and grants to help with costs, parents and family often have to step in to cover the rest.
Depending on where your child goes to university and how much you earn, you could be expected to contribute more than £7,000 a year, according to Save the Student.
Here we’ve asked experts how to prepare your child for university and the tips they can take to bag free cash and discounts while cutting costs.
Don’t wait to apply for student finance
Don’t wait until the moving boxes are packed before sorting out student finance.
Funding is split into money that is paid towards tuition fees and then towards maintenance loans.
Tuition fees are rising by £255 to a maximum of £9,790 a year – or £29,370 for a typical three-year course – in September.
Most students in England will not have to pay this upfront.
They can get a tuition fee loan from Student Finance England, which is paid directly to the university.
Maintenance loans help to pay for the accommodation and day to day costs of going to university.
The size of the loan depends on where the student lives and their household income.
It is expected that the average full-time maintenance loan in England for the 2025/26 academic year is £9,070, according to projections from the Department for Education.
This is unlikely to cover all living costs.
Parents may need to provide income information, so reply promptly to requests or your child could get less support than expected.
Students from low-income families could also get bursaries, scholarships and hardship funding worth between £1,000 and £4,250, which does not need to be repaid.
Some support is awarded automatically based on household income, but other schemes require you to apply.
Check the support on offer at gov.uk/student-finance/who-qualifies.
Unlock perks with a student bank account
8
Student bank accounts often come with more perks than standard accounts.
Banks offer cash, vouchers or subscriptions to tempt freshers – but the flashiest freebie is not always the best deal.
Compare the interest-free overdraft, whether the full amount is guaranteed and how long it remains free.
An account advertising an overdraft of up to £2,000 does not mean everyone will receive that amount.
Most overdrafts are optional, so your child will need to apply for one.
The amount they could get depends on their financial situation and credit history.
Thomas Gibbons, an adviser at debt-help provider Money Wellness, said: “An interest-free student overdraft is generally much cheaper than borrowing on a standard credit card.”
Find out what happens after graduation, when the account will typically switch to a graduate deal and the interest-free overdraft may shrink.
Thomas said: “Student accounts will usually move to a graduate account, and the interest-free overdraft limit can reduce over time.”
Santander’s Edge Student account is one of the best on offer.
It gives customers an interest-free overdraft of up to £1,500, a free four-year Railcard worth £115 and the chance to win £20 in prize draws.
Nationwide offers £100 free cash, £120 in Just Eat vouchers and an interest-free overdraft of up to £3,000.
The Lloyds student account offers customers £100 free cash and £120 of Deliveroo vouchers.
They’ll also get an overdraft of up to £1,500 in years one to three, which rises to up to £2,000 in years four to six.
Build a budget together
8
Budgeting is super important when it comes to getting through university without building up a huge overdraft.
Thomas said: “The problem we see all the time is that student money arrives in three big payments, but it has to last the whole year.
“A few thousand pounds landing in your account in September can feel like a lot, but it needs to get you through to January, which is four months away.”
Before term starts, it’s important to draw up a budget as doing so could save an average of £445 a year, according to banking platform Tink.
Thomas said: “Before you work out a weekly budget, work out the full year.
“Add up your student loan, wages and any regular help from parents or family, then take off your rent for the whole tenancy.
“Divide what’s left by the number of weeks you need it to cover.”
One of the easiest ways your child can manage their weekly budget is using the 50/30/20 rule.
This means they would split their weekly budget into 50% for essentials such as rent, bills or groceries, 30% for fun and 20% for emergencies.
Parents should be honest about what they can afford and agree whether they will cover costs including travel home or essential course equipment.
Don’t get caught out by small print
8
The average cost of weekly rent in the UK in halls can set students back around £166 a week, according to The Complete University Guide.
Private sector accommodation averages around £155 per week for an en-suite room and £228 for a studio.
But watch out for cheap deals as they can become costly once bills and a long contract are added.
Clive Holland, broadcaster and property expert at Fix Radio, said: “One of the biggest mistakes students can make is choosing accommodation purely on the advertised weekly rent.
“Before signing anything, check how the property is heated, whether bills are genuinely included and whether there is a fair-use cap.”
A fair use cap limits the amount of electricity, gas, water or internet that is included in the rent before they are hit with extra charges.
Multiply the weekly rent by the number of weeks in the tenancy to find the true cost.
Some contracts run through the summer, even if the room is empty.
Parents acting as guarantors should read the small print carefully.
Thomas said: “In some joint tenancies, everyone can be responsible for the full rent and bills, rather than just their individual share.
“If one housemate stops paying, the others could be left having to cover the shortfall.”
On moving day, take dated pictures and videos of every room, photograph meter readings and report existing damage in writing.
Clive said: “It only takes a few minutes, but it can save a lot of stress when it comes to getting a deposit back.”
Budgeting gave me a security blanket
English literature graduate Kiaya Phillips spent hundreds of pounds of her savings when she started at the University of Oxford.
But the savvy student managed to get her finances back on track by budgeting.
Her dad helped her make a budgeting spreadsheet and found she was spending too much on eating out and buying coffees.
Kiaya, 21, tackled her over-spending by setting herself a £10 daily spending limit on food and “nice-to-haves”.
She hosted pre-drinks in her college halls before going out to save money.
She earned extra income by working in the holidays at Lapland UK or in pubs, as Oxford doesn’t let students take jobs in term-time.
Kiaya said: “I didn’t feel as if I was missing out on anything by budgeting.
“It gave me more of a security blanket knowing my balance wasn’t at zero.”
Sort out shared bills immediately
8
Paying rent is just the start as your child will need to budget for bills too.
Students pay an average of £75.56 per month for household bills, including gas, electricity, water, broadband and TV licence.
Bills are typically included in halls, so they will be managed on your child’s behalf.
But in a private house, students should decide who will handle energy, water and broadband, and use a shared spreadsheet or app to track payments.
For example, Splitwise can help to track bills and other shared costs, while Monzo lets users split costs or request money from friends.
Homes occupied entirely by full-time students are exempt from council tax, though they may be asked to provide evidence to prove this.
Cut everyday costs
8
Students spend an average of £1,142 a month on everything from groceries to transport to going out, clothes and shopping, according to Save the Student.
To cut costs your child should plan their meals, write a shopping list and avoid hitting the supermarket while hungry.
A typical student spends £49 a month on takeaways and eating out, so cutting these out could save £588 a year, according to Save the Student.
Thomas said: “Find out when your local supermarket puts out reduced items, and freeze anything you’re not going to eat before it goes out of date.”
Students should sign up for discount apps and cards including UNiDAYS, Student Beans and TOTUM, which can save them hundreds of pounds.
For example, UNiDAYS is giving customers two Cineworld tickets for £13 and 11% off at Boots.
Those signed up to Student Beans can get 10% off at Asos and 40% off an EE SIM card.
TOTUM said its members save around £550 a year on average.
Students who travel regularly should consider a 16–25 Railcard if their bank account does not include one.
The card costs £35 a year and save customers around £173 annually, according to National Rail.
Ask for help early
8
Don’t wait until rent or bills have been missed to speak up.
Starling’s survey found 23% of students relied on university hardship funds or bursaries, while 83% said financial worries affected their studies.
Thomas said: “Most universities have some form of hardship or financial support fund, and you don’t necessarily have to be in an extreme situation to ask what help is available.”
Students should contact student services or their union and use the Turn2us grant search.