Consumer Corner: Stretching a student budget amid the cost of living crisis

The financial experts break down the fundamentals of getting the most bang for your buck as a student

Stephen Ó hEarchaidh of Savvyspender.ie highlights the importance of making a budget which, when written in black and white, may deter students from potentially spending all their  money prematurely.

All around the country, thousands of students and parents will be preparing once again for the college year. Like any other year, the excitement of college will be mixed with worries around financial planning.

College life is not cheap and this year, of course, is no different. Zurich Life has estimated that the cost of sending your child to college in Ireland could exceed €15,000 per year.

There are ways, however, that students and parents can help to cut costs over the year. Of course, there are grants that students can avail of but they will only cover some of the costs.

Firstly, retailers and the food service business love students and will do all they can to encourage students to spend their money.

Stephen Ó hEarchaidh has set up a website called SavvySpender.ie which is a must-visit for any student heading to college this year. On the website, he outlines a variety of places where students can bag themselves discounts. The site is packed with food deals from the likes of Captain America’s and McDonald’s to clothing discounts from the likes of ASOS and River Island. There is also a list of where students can get discounts when shopping for technology, like laptops or phones. Discounts can often be as much as 20%.

Stephen also said that making a budget is key for students as the temptation is there to blow through savings during the first few weeks of term with many activities on offer during Freshers’ Week and similar.

“Make a list of all sources of income including existing savings, grants, wages from part-time work or money from parents. Similarly, add up all your outgoings including rent or college-related fees. Subtract your outgoings from the income and divide the answer by the number of weeks of term. This will help you find out how much you have to spend each week on food and socialising,” he said.

Spendee, Splitwise and Revolut apps are all useful tools to help track expenses and manage a budget.

Sarah Rigney of Bonkers.ie said that having a budget also makes it less likely to impulse buy.

“Try to make note of what you spend this year so that you can plan ahead for next year. If you can, try to save a small amount of money regularly. Setting aside even €20 to €30 a month over the course of a year can make a huge difference when it comes to buying school supplies,” said Sarah.

Food will play a big role in the life of any student and SavvySpender.ie also has a great tool for comparing prices in supermarkets. They point out that there are many ways students can get the best value for their money with their food shop. Some of the tips include doing your homework and checking out the various deals online before shopping, using store loyalty cards, making a list and sticking to it, and buying in bulk where possible. They also suggest changing the Sunday roast to chicken, saying that according to their research on a per kilo average, chicken costs only a quarter of what beef does. They estimate that changing from beef to chicken could save students around €855 a year.

Students can also save money on their streaming services by joining a friend or family member’s account as many streaming services let multiple users log in to one account. Also, if students are in an area with good mobile phone reception, they could consider using a SIM-only mobile plan as a substitute for broadband. They could use their phone to hot spot as a substitute for WiFi in their homes —thus saving sign-up fees as well as monthly bills.

Although borrowing money should be a last resort, banks offer some student loan deals to help. The likes of AIB and Bank of Ireland also offer student credit cards but students will be warned to read the small print and know exactly what they are signing up to before agreeing to take on a credit card. If you are taking on a credit card, try and keep the credit limit low to avoid overspending. Stephen Ó hEarchaidh advises keeping in mind that student overdrafts and loans can be a great source of emergency funds but they do have to be paid back at some point.