Saving Money During the Cost of Living Crisis: Three Tips for Students
With inflation hitting record highs and interest rates climbing, student living has become even more expensive. Standard living costs – like rent, utilities, and even groceries – have increased, and it’s been reported that one in seven students are fearful of facing homelessness within six months.
In this blog, we’ll share three useful tips for saving money during the cost of living crisis. Every little helps; and you may be surprised at how small, smart changes can make a difference to your monthly budget.
Student Money-Saving Tip, #1: Choose the Right Bank Account
Within the current landscape, it might feel like there aren’t many options – but the good news is, when it comes to choosing a bank account, there are plenty! Furthermore, there are different perks on offer (from railcards to Tastecards to cash rewards), which means it’s worth taking the time to research the market and ensure you get the best deal for your needs.
First and foremost, we’d recommend prioritising your safety net: even if you don’t picture a need for an overdraft, you never know what could happen, so do choose a bank account that offers a well-sized, 0% overdraft (ideally for the duration of your studies). Don’t forget to read the small print, though: some student accounts require you to make a minimum payment each term, so the implications of any such stipulations should be considered before you sign up.
Student Money-Saving Tip, #2: Selling and Saving
The idea of saving at the moment might seem a far-off dream, but there may be unexpected ways to make a little extra cash! Have you decluttered recently? From old toys to well-looked-after clothing, preloved items can find a new home on marketplace websites like eBay or Vinted. Remember the saying ‘one man’s trash is another man’s treasure’, and start thinking what you might be able to sell!
Alternatively, you may be able to channel a passion into a second career. If you’re crafty, skilled at art or design, or particularly enthusiastic about a certain niche, why not see what you can make? From candles to cushions, sites like Etsy and Amazon Handmade offer a perfect platform to showcase your wares.
Now… onto savings. We know, we know: money doesn’t go as far now due to inflation, so you might not have much left over (even if you have become a whiz at online selling). However, if you do have a few pennies to spare, we’d highly advise looking into a savings account. This is because whilst rising interest rates mean that borrowing is more expensive, it also brings increased benefits for savings: so any money that you put into a savings account will grow at a faster rate than it would have before. Better still, if you have money you can afford not to touch for a period of time, you can look into a fixed-rate account – these tend to have even more attractive interest rates.
Student Money-Saving Tip, #3: Energy Management
For various reasons, including the war in Ukraine, the escalating price of energy has become a global situation. But are there ways to reduce your bills without serious discomfort?
Former UK Prime Minister Boris Johnson came under fire for suggesting that spending £20 on a new kettle would be a good way to combat the energy crisis; but, in fact, if you have £50 to spare, spending the money on an electric blanket could be a wise step. This will keep you warm without turning radiators on - which, in the long term, could save you money.
That covers turning things on – but what about turning off? Devices that are plugged in are still using electricity, even if they’re on standby. From televisions to phone chargers, switch the plug off at the wall when not in use (everything except for the fridge or freezer, that is). That goes for leaving the lights on, as well; if you aren’t in the house, or even in the room, turn off the lights.
Another simple-sounding step is to consider meal prep. You might be aware of how planning meals before grocery shopping can save money—but how can it cut down energy bills? By reducing oven/hob usage! Using a microwave is much cheaper than switching on the oven: so if you make a big meal each Sunday and portion this out for the rest of the week, reheating via the microwave if necessary, the savings could be substantial. Don’t forget to freeze any leftovers, too!
Finally: make use of campus spaces. Your university will have a library and other faculty buildings that are available for your use – so why not make the most of them? You can enjoy free WiFi, warmth, lighting, and even plugs (great for charging your laptop and phone) whilst saving on the bills at home.
