For a generation that’s remarkably good at breaking many social stigmas, we seem to have failed at
breaking the taboo over personal finances. Even among my flatmates, who I share rent and bills
with, it seems a touchy no-go. But the issue with keeping things in the dark is that nothing can grow
there and as a result we all feel a bit clueless. When I asked my flatmates their feelings on finance they responded with “guilt” and “stress”. So screw social convention. This is a conversation that
needs to be had.
I’m not a professional financial consultant; I have no accreditations. So take my thoughts with a
pinch of salt. I want to start healthy discussions about things we don’t talk about enough.
Money is awkward, don’t get me wrong, I’m not talking about sharing how much you have, more
where you have it and where it’s going. You can’t get confident if you shy away from it. So here are
some things to bear in mind.
Ignorance isn’t bliss
Personal finance can be confusing from the outside, but it doesn’t have to be. Just a little research
and some healthy discussion can help you feel more confident in your choices, and ultimately more
confident in your own finances.
A good place to start is money saving expert which covers everything from getting a student bank account, to budgeting and loans. See it as your on-hand dad-friend that can answer all kinds of basic questions.
They also have info on ISAs – no tax, high interest savings accounts. If you’re aged between 18 and
30, you can earn 25% interest on your savings which you can use towards your first home deposit (up to £400,000) or even your pension. It’s definitely something to look into.
Don’t be scared, just prepared
A big fear, chatting with friends, was about making mistakes. But one of the biggest mistakes can be
to ignore your finances. Save the Student found in a recent 2023 survey that 14% of students don’t have any savings. It’s easy to focus on the chaos of student life and ignore the future, but thinking ahead where possible can help you get prepared.
A classic example is having a savings account; they tend to have higher interest rates than your
normal current account. If you’ve earned a bunch over the summer, or just got a lump sum through
from student finance it might be worth looking at putting it in an instant access one. Again, money saving expert has tons of advice about this, with info about the best interest rates and easy access arrangements for students.
Budgeting is your friend
…and it doesn’t have to be a stress. Save the student has great resources on this to simplify it all, so
does the university. I do mine on a spreadsheet, and have a max amount I want to spend on food,
going out, etc each week. Knowing where your money is going is the key to having more control and
confidence.
Finance doesn’t have to be scary, it also doesn’t have to be taboo. Share info, tips, tricks, what works
for you with your flat mates and friends. If knowledge is power, then we need to share what we have.
“A pile of 50 pound notes” by Images_of_Money is licensed under CC BY 2.0.