Students 'overwhelmed' by managing finances

Like many of the more than half a million students studying in London, Thomas Murch finds coping with finances an ongoing struggle.

“The cost of living has increased a lot, so doing the things I would normally do requires more money, and it’s very hard for me to balance the wants with the needs.

“There’s so much I want to do, but there’s so much I have to take care of first.”

Thomas is a student at the University of East London (UEL), and works with the Student Money Advice and Rights Team (SMART) to teach students how to budget.

This includes help in signing up for bursaries or other programmes to obtain full funding entitlements, and supporting career development.

Thomas said the SMART team helped him to stay in control of his finances, including how to “make sure my needs are met before I deal with my wants”.

As students return to universities and the new academic year, the 2025 National Student Money Survey found an average student in London spends £1,269 a month, covering basics like rent, bills and food.

Undergraduate tuition fees also rose from £9,250 to £9,535 in September 2025, the first increase since 2017.

Kayode, a final year masters student at UEL, said he worried about his finances “a lot of the time”.

“You have to pay rent, go grocery shopping for food, and find your way to work and classes.”

Research by Visa, which surveyed 275 London students and 2,000 undergraduates nationally, suggested he is not alone.

The vast majority – 84% – of students surveyed in the capital said they felt “overwhelmed” by managing their money.

Another financial burden for students in London is the cost of transport.

The capital’s Tube network is the most expensive of any major global city, with a single journey costing between £2.50 and £3.80.

UEL undergraduate student Viga Lukita raised travel costs as a concern, but said she uses the Student Oyster Card and travelled during off-peak hours to save money.

The start of the new academic year comes as social mobility charity The Sutton Trust warned pupils from private schools “are maintaining a vice-like grip on the most important roles in society“.

Data from the trust indicated the UK’s most powerful and influential people are five times as likely to have attended private school than the general population.

UEL is ranked the UK’s most accessible university for low-income groups, and 77% of its UK students come from the most deprived homes.

Prof Amanda Broderick, vice-chancellor and president of UEL, said: “Talent is evenly spread across society, but opportunity isn’t.”

She said the university provides more than £7m in bursaries and hardship funds each year, as well as running financial literacy courses and setting up a student essentials larder.

Prof Broderick also said the university supports its students to work part-time alongside their studies.

Research by the Higher Education Policy Institute suggests more than two-thirds of full-time students now work during term time – an increase on 2023.

One of these is UEL masters student Anand Sasi Kumar, who struggled to manage his money when he started his studies but getting a job helped him survive.

“Once I got into work, I could budget everything much better and easily.

“If you’re lucky enough to find a part-time job and you earn good money, it’s easier for you.

“When I started earning, I could start to go out more and see more places.”

Emily Crook, a student at the BPP Law School in central London, shared some of the tricks she uses to save money.

They include looking for reduced items in supermarkets that can be frozen and kept for later, using online platforms to resell or buy clothes, and using apps to accumulate money-saving points, like Nectar card and Clubcard.

Anand recommended options such as getting council tax discounts and using railcards for rail travel.

Advice from Money Saving Expert said students should research the best bank account for them, use websites like Unidays for discounts, and ensure tenancy deposits are protected.