Managing your money at university: A guide from Equifax UK
London, 26 August 2025 - As the new academic year rolls around and many young adults head to university, Equifax UK is encouraging students to build good financial habits early.
University is often the first time students start interacting with credit – whether that’s opening a student bank account with an overdraft, paying a mobile phone or utility bill, or applying for a credit card. That makes it a critical time to start building healthy financial habits and an informed relationship with credit.
The appetite for financial knowledge is clear. Research from Equifax UK found that four in 10 (39.5%) of its users check their credit report simply because they are curious about their credit score or general creditworthiness1. This Freshers’ Week, Equifax is encouraging students to take their first steps towards financial confidence by understanding how credit works, and why it matters.
Craig Tebbutt, financial health expert at Equifax UK, said: “University is a fantastic time to build a strong financial foundation for your future! By creating a smart budget for your living expenses, studies, and social life, you're not just paying bills—you're proactively building good habits and paving a clear path to building your own financial well-being..
“In many ways, your ‘credit footprint’ begins when you’re a student, perhaps through an overdraft or other financial products, such as credit cards or a mobile phone. It’s important to understand the different types of credit available and be aware of what you can afford to borrow and repay. Credit can open the door to accessing better terms on financial products in the future, such as a mortgage. Understanding credit and making informed decisions early on will help build a stronger foundation for your financial future.”
To help students build a strong financial foundation, Equifax UK has the following tips:
- Smart budgeting
- 50% for needs: Living expenses, such as your rent, bills, food, books for your course and transport
- 30% for wants: Shopping, trips, subscriptions or nights out
- 20% for savings or debt: Putting money aside into your savings account, or paying off debt beyond minimum payments
- Money saving hacks
- Being credit responsible
- What should I do if I start to struggle with debt?
Learning good budgeting habits is crucial at university where you’ll have different expenses to manage. At a minimum, keep a close eye on your bank balance and know when big payments are coming in and out. It’s then helpful to stick to a planned budget. If you’re stuck, the 50:30:20 rule can be a good place to start as it makes identifying where your money goes quick and easy:
This rule ensures you are still able to have fun without causing financial strain.
Being savvy in the kitchen is a great way to save money at university. Cooking is much cheaper, and healthier, than takeaways or eating out - especially if you include your housemates and share the cost between you. Plan your weekly food shop, stock up on bulk items, and take advantage of low-cost supermarkets.
University supplies can get expensive, especially when you buy them all brand new. If you need books and equipment for your course, try and find them second hand or use your university library.
Finally, there are lots of discounts and deals offered to students so it’s always worth doing your research to find out what’s available!
Building a credit score can be easier than you think. Signing up to the electoral roll is the easiest and quickest way to get started and help improve your score. Applying for a reasonably priced mobile phone contract is a good next step – so long as you always pay your bills on time. If you’re sure you’ll have enough money in your account, you could put household bills in your name - just make sure your housemates pay you back for their share as soon as possible. Finally, you could apply for a student credit card, spend a small amount and pay the balance back in full each month. Make sure to do your research on the different credit card deals available and don’t submit several applications at once as this can negatively impact your credit score.
If you do utilise credit, it’s crucial to stay on top of all repayments and keep an eye on your credit report. If you spot something that doesn’t look right, make sure you investigate it immediately.
If you’re struggling with credit card bills, loan repayments or overdraft fees, the first thing to do is remember that help is available. The sooner you start working towards minimising your debt, the faster it will get sorted. Tell someone that you’re struggling – whether that’s a friend, family member, a student welfare officer or a charity such as StepChange.
Then it’s important to make a plan to help with reducing your debts – and to stick to it. If it doesn’t affect your studies, a part-time job could help to maximise your income and reduce debt.