Many of us are dealing with differing financial situations at the moment. Whilst the majority of student funding payments are still going ahead as normal, maybe you’ve been furloughed from your part-time job, are on a temporary contract or are completely out of work during lockdown. Whatever your circumstances, this is an extremely worrying and stressful time but you might be particularly worried about your finances and how to manage them while we’re under restrictions.
Despite the fact that many are experiencing a drop in their normal monthly income, people still have essential bills and things to buy. So, what can you do to try and make sure you can cover these costs?
Understanding your rights
Possibly the most important thing you can do at this time is to get informed. During this time, it’s vital you understand your rights and what you are entitled to.
The Money Advice Service has a helpful guide which details various situations and the support you could be entitled to receive:
To access the guide, click here.
Make An Emergency Budget
Budgeting is good practice at the best of times when it comes to getting your finances under control, but creating an emergency budget to see you through the coming weeks could be very helpful.
Although this is not a fun activity, we’d suggest taking a look at how much money you have currently, what income you expect and what you’re spending. Chances are, you’ll feel better for doing it and more in control of your situation.
There are some great online tools and resources to help you with budgeting:
Money Advice Service Budget Planner
Money Saving Expert Budget Planning Guide
Cutting down essential spending
There are some things that we can’t avoid spending money on. Utilities, rent, and food are all essential parts of life. However, there are ways to reduce some of these costs to make your money last longer.
Suggestions include:
- Consider switching utilities suppliers to a cheaper alternative
- Speak to your mortgage provider about a repayment holiday
- Meal prep and maximise your weekly food shop
Reduce non-essential costs
While we’re all stuck at home, it’s important to still have fun and keep the things you really enjoy like your Netflix account.
You might find however, that some of your monthly subscriptions or memberships are not necessary at this time such as a gym membership, sports subscription or a beauty subscription. Why not cancel or pause these for the time being and pick them back up when things return to normal?
Dip into savings
Do you currently have some savings that could provide a bit of cushion for the time being? Maybe you have a savings account or an ISA but are concerned about accessing the money? Banks are being more flexible due to the coronavirus outbreak and the fact people are struggling financially, therefore you may be able to access the money more easily. Check with your bank or building society for more information.
Access the help you need
Please access the help you are entitled to. If you’re unable to work at the moment or your income has been reduced because of coronavirus measures, you should look into claiming benefits and other financial support that is available.
There are some great resources available during this time on financial support.
The Money Advice Service breaks down the various schemes and types of help available. You can access their guide here.
We hope this has provided you with some helpful information on how to look after your finances during this uncertain time and please see our Coronavirus FAQs for more information specifically relating to college queries.