Students more worried about money than ever as cost of living bites
Money worries are the biggest concern facing students today, new research has revealed.
With the new term fast approaching, Scottish students will no doubt have money matters on their mind as they figure out how to survive on their own.
And a survey carried out by Nationwide found that money worries were topping the list far more than they did for previous generations.
Not budgeting properly was their biggest regret - even ahead of leaving vital assignments to the last minutes.
Students were also worried about overspending on nights out, relying too heavily on their overdraft and not saving for emergencies.
The Nationwide study came as research from Santander revealed two thirds of UK students were expected to run out of money before the end of their first term.
They found that the average student spends £182 during Freshers’ Week alone, and while they typically budget for bigger expenses such as rent and bills, many find themselves caught out by the smaller costs such as homeware essentials, coffee, snacks and laundry.
That becomes less surprising when you consider the Nationwide FlexStudent research which showed that nearly four in ten (39%) of current students surveyed spent between £150 and £300 a week on food and drink – on top of tuition fees, rent and utility bills.
And while the students of yesteryear were criticised for blowing their budget on booze, it seems the new generation are instead spending it on food.
Food shopping and eating out now represents one of the biggest single costs of university life.
In fact, 60 per cent of current students say that they are spending more than they had expected or budget on food overall - and that they are packing their kitchens with the latest gadgets, from air fryers and mini fridges to toastie makers, cafetieres and specialist grills.
Elizabeth Mole, an Economic and Social History graduate at the University of Glasgow, currently living in Edinburgh, is well aware of the financial pressures students face.
"It can be tricky to balance all the different costs at university,” she said. “At the start, you budget for the big costs such as rent, food and socialising. However, it was the smaller costs such as travel and textbooks that built up during the term which I hadn’t accounted for.
"During each summer, I worked at the Edinburgh Fringe with my friends. This gave me some extra cash between university years and allowed me to save before starting term again in September.
"Having the right student account was a lifeline at university, the interest-free overdraft gave me breathing space with my finances.”
There are plenty of banking options available to students - and with 80% admitting to turning to the ‘Bank of Mum and Dad’ for financial support in their first term, finding an account that offers them the best support is something that benefits everyone.
Nationwide’s FlexStudent account offers £100 cash, £120 Just Eat vouchers; interest-free, fee-free overdrafts of up to £3k and commission-free purchases & withdrawals abroad, plus new limited-edition card designs. It’s an offer that has clearly been popular, with the bank saying it has won 48% of UK’s student accounts.
- Create a budget that aligns with your Student Finance: whether it be monthly SAAS payments or Student Finance every term, create a budget that matches up with your income to avoid running out of money between payments. And budget for the fun stuff, not just the essentials: Freshers’ events, society memberships and day trips can add up. Set aside money for social spending from the start.
- Pool costs with flatmates: buying food and household essentials in bulk and splitting the costs can save easy money. Don’t forget the move-in costs - bedding, kitchen appliances and cleaning products can eat into your budget surprisingly quickly. Make a list before you arrive and share costs with flatmates where possible.
- Make the most of student discounts: Before making a purchase, always check for student discounts, they could help you save hundreds of pounds across the year.
- Review your subscriptions: Gym memberships and app subscriptions can quickly add up, so only pay for those that you regularly use.
- Make your first loan payment last: Break your loan into a weekly budget to avoid falling short on money before the end of term. And keep on track of everyday spending. Those small purchases, like taxis or coffees, may seem insignificant but can add up faster than you think.
- Get a summer job – working over summer can really help with covering costs whilst you wait for the next student finance payment
- Remember to apply for your YoungScot National Entitlement Card if you haven’t already- make use of free bus travel for under 22, as well as all the discounts that come with it. And check what other support is available to you - some universities offer bursaries and scholarships to help students that are looking for financial support.
- Choose a bank account that works for you: Features such as an interest-free arranged overdraft, upfront cash boost, and discounts on everyday spending can help you stay on top of your finances.
Tom Riley, Director of Retail Products at Nationwide Building Society, said: “Our research shows just how much more financial pressure today's students feel compared with previous generations, which is why we're continuing to offer real, practical support through our FlexStudent current account offer.
“Whether it's an unexpected bill or a well-earned takeaway with new housemates, we want students to start university on the best possible financial footing. FlexStudent is available to new and existing students starting an undergraduate course, and can be opened via the Nationwide app or in branch.”
Santander, meanwhile, had launched a prize draw with up to £100,000 up for grabs for students who open or switch to the Santander Edge Student Account between 14 July and 16 October 2026. The Edge Student Account offers no monthly fees, an interest-free overdraft of up to £1,500, and a free four-year railcard, providing additional support as students navigate university finances.
Gail Russell, Head of Everyday Banking at Santander said: "Starting university is a major milestone, bringing new opportunities, experiences and independence. For many students, it’s also the first time they’re managing their own money.
“While there can be unexpected costs along the way, these experiences help build confidence and money management skills that can last a lifetime. Our Edge Student current account is designed to give every student a cash boost, with the chance to win life-changing money, alongside the tools and support to help them build confidence and encourage positive money habits alongside their studies.”
Comments
Want to join the conversation? Please or to comment on this article.