Are Students Overwhelmed by Managing Their Finances?

Managing finances while studying in London can be a daunting challenge for students. With rising living costs and tuition fees, many are struggling to balance their budgets. The 2025 National Student Money Survey revealed that the average student in London spends £1,269 monthly, highlighting the financial pressures faced by students in the capital.

Last updated: 14 October 2023 (BST)

Understanding the Financial Landscape for London Students

As the new academic year begins, students like Thomas Murch are recognising the importance of financial literacy and support. He is not alone; many students report feeling overwhelmed by the costs associated with living and studying in London. This article explores the financial challenges, available support systems, and practical tips for managing finances effectively.

Average monthly expenditure for students in London is £1,269.
Tuition fees increased from £9,250 to £9,535 in 2025.
84% of London students feel overwhelmed by financial management.
UEL offers over £7 million in bursaries and hardship funds annually.
More than two-thirds of full-time students work during term time.

Rising Costs: What Students Are Facing

The cost of living in London has surged significantly, making it difficult for students to manage their finances. Key components of their monthly expenses include:

Rent: With high demand and limited supply, rent prices can be exorbitant.
Food: Students find it increasingly difficult to afford basic groceries.
Transport: The cost of public transport is a significant burden, with Tube fares reaching up to £3.80 per journey.

These financial pressures have been amplified by the recent increase in tuition fees, which rose for the first time since 2017. Students like Kayode, a final-year master's student at the University of East London (UEL), express frequent concerns about budgeting for necessities while trying to maintain social lives.

Support Systems in Place for Students

Recognising the financial challenges students face, universities have stepped up to offer support. At UEL, the Student Money Advice and Rights Team (SMART) plays a vital role in helping students navigate their financial situations. Thomas Murch, who works with SMART, emphasises the importance of budgeting and prioritising needs over wants.

UEL is dedicated to accessibility, with 77% of its UK students coming from low-income backgrounds. The university provides over £7 million annually in bursaries and hardship funds, aimed at alleviating some of the financial strain students experience.

Financial Literacy and Budgeting Workshops

Financial literacy is crucial for students to manage their money effectively. UEL offers workshops to help students understand budgeting, saving, and financial planning. These workshops cover:

Creating a budget plan tailored to individual needs.
Understanding essential expenses versus discretionary spending.
Applying for available bursaries and financial aid.

Such resources empower students to take control of their finances and make informed decisions.

Part-Time Work Opportunities

Working part-time is becoming increasingly common among students. Research from the Higher Education Policy Institute indicates that over two-thirds of full-time students now seek employment during term time. This trend is partly driven by the need for financial independence. Anand Sasi Kumar, a UEL master's student, highlights how finding a job transformed his budgeting capabilities.

Students can explore various job opportunities, including:

University jobs, such as tutoring or administrative roles.
Retail and hospitality positions, often offering flexible hours.
Remote work options, which can accommodate study schedules.

Practical Money-Saving Tips

Students can adopt several strategies to save money while studying in London. Here are some practical tips shared by students like Emily Crook:

Utilise Student Discounts: Use platforms like Unidays to find discounts on various products and services.
Shop Smart: Look for reduced items in supermarkets that can be frozen for later use.
Travel Wisely: Use a Student Oyster Card and travel during off-peak hours to save on transport costs.
Online Reselling: Consider reselling clothes or buying second-hand to cut down on shopping expenses.

Managing Transport Costs

Transport in London can be a significant financial burden for students. With Tube fares being the highest among major cities globally, it is essential to minimise these costs. Strategies students can implement include:

Opting for walking or cycling where feasible.
Utilising buses, which can be cheaper than the Tube.
Taking advantage of railcards for discounted train travel.

Looking Ahead: The Future of Student Finances

As financial pressures on students continue to grow, it is crucial for universities, policymakers, and students themselves to address these challenges proactively. The Sutton Trust's findings highlight the disparity in opportunities based on educational background, indicating a need for more equitable support systems.

With ongoing discussions about student finance reform and the potential for further tuition fee increases, students must remain informed and engaged. The emphasis on financial literacy and support services at universities like UEL is a step in the right direction, but continued advocacy for fair financial practices is essential.

FAQs

What is the average monthly expenditure for a student in London?

The average student in London spends approximately £1,269 each month, covering essential expenses like rent, food, and transport.

How has tuition fees changed recently?

In September 2025, undergraduate tuition fees increased from £9,250 to £9,535, marking the first rise since 2017.

What support does UEL offer to students facing financial difficulties?

UEL provides over £7 million in bursaries and hardship funds annually, alongside financial literacy courses and access to the Student Money Advice and Rights Team.

What are some tips for managing finances as a student?

Students can manage their finances by creating a budget, utilising student discounts, shopping smart, and working part-time to supplement their income.

How can students save on transport costs in London?

Students can save on transport by using a Student Oyster Card, travelling during off-peak times, and exploring cheaper alternatives like buses or cycling.

As students navigate the financial landscape of higher education, the importance of support systems, financial literacy, and practical budgeting cannot be overstated. The future of student finance remains uncertain, but with the right tools and resources, students can take control of their financial well-being. #StudentFinance #BudgetingTips #LondonStudents