The United Kingdom currently ranks among the top 10 most expensive countries to study in. The average cost of tuition there is estimated at least £22,000 annually. For international students, the costs can go as high as £38,000. At the same time, living expenses, accommodation, and other necessities are just as high.
To survive under such financial pressure, there is a culture amongst UK GenZ students to take part-time jobs and practise other healthy personal finance habits to make more money. Managing finances is a skill that holds a lot of weight for students in this country, and we’ll explore how most of them have been excelling at it while prioritising their academics below.
The Relevance of Personal Finance Education for Students
Personal finance and financial literacy are two key things that should be taught from a young age. The financial capability strategy for the UK (FINCAP) released key statistics on citizens’ knowledge regarding money management. In this publication, about 39% (20.3 million) don’t feel confident managing their money, and 11.5 million have less than 100 GBP in savings. This shows how little most citizens know about managing and growing their money.
Financial literacy from a young age helps curb these challenges and raise a newer generation of financially aware citizens. At the same time, it helps students get equipped with essential life skills, money-making, management, and decision-making processes. Considering growing inflation and rising cost of living, these skills will also help them in every other journey waiting outside college walls, like building a career and managing a family.
Gen Zs have been known to pick up new skills constantly, and we see many of them reskilling, upskilling, and learning new things outside of school to increase their financial well-being. In a recent report released by Udemy, about 95% of its Gen Z respondents spend at least an hour weekly learning new skills. Some of these include forex trading, virtual assistant, content marketing, and other digital skills. And it doesn’t stop there. As much as there is a need to start a career and make money, it is also paramount to cultivate healthy management approaches for the long term.
Digital Tools for Financial Literacy
Today, the Internet is a global learning market, with various applications, platforms, and resources that help students improve their knowledge. Some popular applications in this category are Emma, Moneybox, and Revolut. These applications have budgeting, expense tracking, and other relevant features. They help with automated saving plans and micro-
investing, where users can invest small amounts in diversified portfolios. At the same time, there are online platforms where people take courses on managing money and building better habits. Some of them are Coursera and Udemy.
Budgeting Skills
Many students actively engage in budgeting, especially as they become more financially independent and must manage limited resources effectively. This is largely attributed to rising tuition fees and cost-of-living pressures in the country. Budgeting for students ranges from simple approaches and basic frameworks to more sophisticated options that extend to constantly tracking spending. Apps in the UK that you can use for this are Monzo, Revolut, and Moneybox.
Earning and Side Hustles
Side hustles are a profitable money-making opportunity in the UK. According to Finder, 43% of Brits have a side hustle as an additional source of income. These individuals can make an average of £207 to £900 monthly from these jobs. Students in the UK are allowed some hours to work, so they take this time to make money needed to support themselves while in school. There is freedom to work up to 20 hours weekly as permitted by the government.
Loans and Debt Management
Student loans are another essential aspect of financial literacy for students. Over £20 billion is spent yearly on student loans in England, and the value of outstanding repayments reached 236 billion pounds in March 2024. As much as this financial assistance eases students’ burdens, many have been unable to master debt management. Mastering personal finance in this country also involves understanding credit scores, loan types, and debt repayment strategies.
To achieve this, start by understanding the full scope of these loans, including terms and conditions. The University will have these details since the fees are mostly paid directly to the management. Once you have this figured out, create a budget and try to make extra payments to cover debt faster.
Setting A Foundation for Long-Term Financial Sustainability
Mastering money management as a student should be a priority. Building robust financial habits early, like budgeting, saving, and mindful spending, is a solid foundation for managing wealth in the future. It’s a testing ground that sets the tone for your long-term plans to live a financially sustainable lifestyle.
Article written by Andy Brams
