How to budget for uni in a cost-of-living crisis
By Owen Thomson
For many students, managing the costs of university life can be just as daunting as keeping up with the never-ending list of academic demands.
With little flexibility available when it comes to the price of big-ticket items such as accommodation, developing strategies to minimise expenses in other areas is vital.
Fortunately, experts say budget-friendly savings can be achieved across a range of areas.
Professor Alphia Possamai-Inesedy, Pro Vice-Chancellor, Student Success, Western Sydney University.
When it comes to reducing academic costs, Professor Alphia Possamai-Inesedy, pro vice-chancellor, Student Success at Western Sydney University, says scholarship options are well worth pursuing – despite perceptions that such opportunities may be out of reach.
“So many students think, ‘Scholarships are not about me’,” she says.
“But they are about you. There are many different types of scholarships available, and you do have a chance of getting one.
“This is a really important area, and many universities have simplified the process. I urge students to go and look at the scholarships page at their university and see what’s available.“
Possamai-Inesedy says students can also reduce study-related costs by opting to use digital textbooks.
“They’re much cheaper than the hard copy versions and a lot of universities are already pushing these,” she says.
“Making use of your university’s library can also reduce the need to purchase textbooks.“
Buying used textbooks (possibly via Gumtree or Facebook Marketplace) can also be a money-saver. And selling old textbooks online can be a great way of raising some extra cash.
Students may also have options for saving on technology costs.
While universities sometimes offer financial support for the purchase of items such as laptops, Dr Isaac Gross, a lecturer in the Department of Economics at Monash University, says opting for slightly older equipment can also enable significant savings.
“Ultimately, there’s no point studying if you aren’t going to arm yourself with the basic study tools such as a laptop and a phone,” he says.
“So, even buying a product that’s a couple of years out-of-date is a great way to get most of the benefits – but at a much cheaper price.“
In terms of non-academic related expenses, savings can be enabled by accessing student discounts offered by a wide range of businesses.
It’s important that student budgets allow for engagement in campus life.
“Businesses love students,” says Gross.
“They want them to start life-long habits of buying their products, so are more than happy to offer discounts.
There are all sorts of businesses that you perhaps wouldn’t have thought would offer student discounts, but do, such as Spotify and Netflix.“
Rather than cutting budget items entirely, Gross says that students may consider options for “trading down” in order to get something similar for less.
“For example, this can be done by using car-share schemes instead of buying a car, or using a bike instead of taking public transport, or shopping in bulk as opposed to shopping when you need it,” he explains.
“It’s not about giving things up per se. It’s about taking a slightly inferior product or option to make your dollar stretch a little further.“
Along with accommodation, grappling with high food costs constitutes one of the biggest financial challenges faced by students.
Indeed, a recent Western Sydney University survey showed that more than 50 per cent of their students were worried about food security.
To address this vital need, Professor Possamai-Inesedy says universities offer a range of programs and initiatives that facilitate much-needed access.
“All universities have some type of food security program or a way of offering cheaper food, or free food on campus,” she says.
“At Western Sydney University, we do things like free breakfasts. We provide community dinners, and we have a pantry where we give basic staples to students.“
No matter the level of finances available, creating a workable budget is key when it comes to allocating available funds and tracking expenses.
Examining online transaction statements or using a phone app to record expenses can also help to quickly identify spending patterns and inform budgetary adjustments.
“There are lots of online finance tools that offer a good way of tracking weekly spend versus
weekly income,” says Dr Isaac Gross.
“The hardest thing to build in is the one-off expenses: repairing a flat tyre, going to a doctor, having a weekend away with friends.
“Making sure you plan for one-off events is important, and that’s where a budget can help.“
While many will look to address their budget bottom lines by foregoing things like movie tickets, leisure activities, concerts, shows and gym memberships, Professor Possamai-Inesedy says such cuts need to be carefully considered.
“I strongly urge students to factor in the cost of being engaged in their university – whether that means going to a cultural event, joining a club or doing something in sports,” she says.
“There’s so much evidence that even if a student does just one thing, they are more likely to
complete their degree.
“It deepens their sense of belonging. It gives them the social networks and pathways. It definitely leads to success.”