Personal Financial Management Amid Cost-of-Living Crisis in the UK

While we are still dealing with the aftereffects of the COVID-19 pandemic, the rising cost of living crisis is like dealing with a twindemic for people living in the UK. The increase in prices, inflation and economic crisis is leaving many individuals helpless and disheartened. 

The inflation rate is at a 40-year high in 2022, leading to the overall price of budget food items in supermarkets soaring by 17%, according to data from the Office for National Statistics (ONS). This was nearly double the 9% annual increase measured in the 12 months to April.  

It has never been straightforward for students to manage their money and with this grave situation, it is becoming increasingly worse. A combination of academic stress and personal worries when added up with this cost-of-living crisis to bear, inevitably built-up financial stress. If you are a university student or aspiring to become one, listed below are a few reminders which can help you plan your personal finances to avoid any unwanted expenses.

7 Personal financial management tips to deal with the cost-of-living crisis 

While the government is offering every household a discount of 400£ on energy bills, here are a few things we can do to help ourselves and shake off the feeling of hopelessness: 

1.) Monitor your expenses 

This may be stating the obvious, but any day is a good day to start your personal financial management as a student. Always start with prioritising your expenses on the scale of wants and needs, you might be able to strike a profitable balance towards the end.  

You can use Apps like Emma and Money Dashboard. Apps like these help you group all your bank accounts into one place. It also enables you to minimise spending by highlighting unused subscriptions. 

 2.) Look for sustainable and alternative ways to keep warm this winter 

We know how the energy bills are making you anxious. While we cannot control the surging prices, we can try to optimise our usage by looking for alternatives.  We might want to look for sustainable ways to keep warm and may be invest in good-quality thermals and knitwear to deal with the cold. As per a recent survey, using blankets (53%), regular hot drinks (30%), and hot water bottles (28%) were the popular choices among the students to keep them warm. A fifth of adults (22%) also said they wear thermals to avoid putting the heating on when the temperature drops, while one in six (16%) admitted to even wearing gloves, a hat and scarf indoors.

 3.) Let’s embrace the art of cooking

We know a student’s life is a busy and challenging one, but if you can stock up on essential food items and cook at home, it can help you save a lot of pounds. One pot meal is a perfect go-to option for quick, tasty, and pocket-friendly homemade food. You can explore some easy recipes here.  You can check out Premier at DUSA (Dundee University Students Association) offering a variety of pocket-friendly meal options to cook at home. As a student, I personally shop from Lidl and Aldi, it gives me a variety of cheap options to stock up and try different recipes at home, helping me save some amount of money on food.

 4.) Switch to minimalism 

We know how being minimalist sounds, but it is not giving up on everything. It is choosing between things when it comes to spending. Switching to minimalism saves you from the pressure of what to wear, what to cook and deciding between so many “what to’s” on a daily basis.  

5.) Explore local food banks and community fridge 

There is no shame in taking help, and we want our students to understand this. Help is available for the needy ones, worrying about people will not help us, grabbing the available resources will. 

6.) Plan your travel 

Make optimum use of public transport if you are not already doing it. Apply for railcards and NEC cards and avail of the benefits as students. Many international students are not aware of the facilities, and they miss saving a huge amount of money they put into transportation. 

 7.) Stay informed about student funding options 

You may be allocated an award to assist you with your general living costs, or a contribution towards your childcare costs. You can check out the student funding option and your eligibility for discretionary funding here. 

To conclude, I would say that we are together in this financial crisis and we will try our best to fight it. Just in case, you are new to the university and finding it hard to get adjusted to the new environment , you can always reach out to the Advice and Support Team at DUSA and you will have a way forward.

Useful Link and resources: 

1.) Dundee Starter Packs SCIO – Assist individuals and families who are unable to provide themselves with basic household goods and bedding as they prepare to take on a tenancy. 

2.) Fuel Well Dundee – Fuel grant for every household in Dundee 

3.) DUSA Advice & Support – Supporting students with academic appeals, private housing, complaints about the university etc.