The ultimate guide to money management for international students in the UK

Moving to another country to study is an exciting adventure. The UK is one of the most multicultural and inclusive countries in Europe. It’s little wonder thousands of students flock from across the world to attend British universities every year. 

But while getting a degree or postgraduate in the UK has a host of merits, there’s a chance the experience is going to put a slight strain on your wallet. In this guide we’ll discuss everything from the cost of moving to the UK, to building, monitoring, and maintaining a healthy budget. We’ll also look at tips to help you save, while assessing the best options when it comes to grants, scholarships, and savings accounts. 

Being a student doesn’t have to mean toast and ketchup packets for dinner. Let’s explore some of the best ways to thrive in higher education while studying in the UK.

CHAPTER 01

An introduction to international students in the UK

Why the UK is a popular destination for international students

If you polled 100 international students as to why they chose the UK as their place of study, you might hear 100 different answers. There are many reasons why people move from every corner of the globe to the deceptively small British Isles for higher education. Here are just some of the most common. 

Global recognition

UK universities are recognised the world over as respectable and higher quality institutions. The global rankings have as many as four British unis in their top 10 schools, with a further four making it into the top 50. And while not all universities hold such lofty standards, it’s generally accepted that a degree from the UK is worth something. 

Desirable to employers

The weight which is placed on a UK degree carries over into the world of employment. What’s more, it also shows there’s a strong likelihood that you’re able to speak fluent English. This is something that consistently has been and probably always will be valued by those hiring. 

Cultural diversity

Away from your education itself, international students can also explore a wealth of different cultures when living on UK shores. London in particular is a real melting pot of heritages, with people flocking from all over the world to study there. Wherever you end up applying, you’ll find people from a host of different ethnic, social, and religious backgrounds. 

Subject versatility

The UK prides itself on the wide range of degrees and modules which students can enrol for. These will vary between practical, labour-specific subjects, to things you just generally find interesting. Ever thought about pairing a law degree with an ancient magic module? It’s possible at some UK unis. 

Access to Europe

Italy, France, Spain, Greece, Portugal. The list goes on. One of the most amazing things about the UK is that it’s within touching distance of a wide range of amazing European holiday destinations. It’s rare that anywhere in mainland Europe takes more than a couple of hours to reach by plane. 

International student statistics

With so many positives for students coming from abroad, it’s perhaps no surprise that as many as 605,100 students came to the UK for study in 2021. This is an increase of 109,000 since 2018/19, and meant that the Government’s 2030 target of 600,000 total academic entries was hit 10 years earlier than expected. 

These encouraging figures are thanks in no short part to an influx of students from China, which has seen an 82% rise in attendance since the 2011/12 academic year. At the other end of the spectrum, EU countries have experienced a drastic decrease in the number of students coming to the UK for their education. 

Reports show the following drops across some major EU countries:

(represents % drop in students)

When it came to the country with the most international students in the UK, China led the way by a large margin. As many as 78,175 students were from the Asian nation in the 2020/21 academic year.

The total figures for the top 10 countries were:

Other countries which a large proportion of people came from included:

London stands out as one of the most popular destinations, with four of the top eight universities for international students being located in the British capital. 

The eight most popular unis were found to be:

When it came to the subject of choice, one area of study stood head and shoulders above the rest. Business and management had a total enrollment of 177,715 students (nearly three times as many as its closest rival).

The most popular courses were:

Managing money can be tough as a student – whether you’re living in your country of origin or not. After factoring in potential cultural differences, financial disparity, and language barriers which you could face as a foreign national, the task becomes even trickier. Luckily, there are ways to overcome these hurdles. 

Creating a monthly budget

Arguably one of the most important aspects of managing your life overseas, a budget is your go-to yardstick to live your life by. It’s not as simple as deciding how much you want to spend every month. You’ll need to break down all your expenses, and work out where you can divert funds. 

Choosing how to visualise your budget

It might sound trivial, but, for your budget to work, it needs to be formatted in a way which makes it easy for you to digest and understand. An Excel sheet is usually the best option here, as it provides a nice middle ground between complicated templates, or the over simplicity of a piece of paper. It also does sums automatically for you, with the inputting of a few basic formulas. Other options which might work include automatic budget tracker tools, as well as free apps which help you stay on top of things. We’ll discuss some of the best resources to help you budget later.

Listing monthly income

Next, create a column which lists and totalises your entire monthly income. That’s the money which comes from your student loan, bursaries, grants, employee wages, parental contributions, or any other kind of benefits or allowances you receive. Make sure to only write down those which are consistent, as they will determine your true monthly income. 

Track monthly spending

You can break this down into two distinct columns. The first are your essential costs. These include things like:

• Your rent

• Any bills

• Money put in any savings accounts 

• Repayments of any loans 

• Regular transport tickets 

These should be fairly easy to track, as they’re constants. What’s slightly harder to keep on top of are your flexible costs. These are payments which differ according to whatever your social life, eating habits, or extracurricular activities look like in any given month. 

The trick here is to take your total income, deduct the cost of your essential costs, and then use the remaining figure to work out how much you have to spend on these flexible costs. This gives you a rough idea of what you can or can’t afford to spend. 

Balancing your budget

Choose one day of every month (the first day makes sense for consistency) to go through your budget and work out if you started the month with more or less than what you started. In theory, you should be sitting around a similar number on the 1st. A small dip or rise is quite normal, but if you notice large declines month-on-month, you’ll need to think about cutting costs.

Cutting costs

Look over your finances with a fine-toothed comb. Your flexible costs are the key here. While you won’t be able to do much to lower regular payments like rent or bills, you might spot that certain snacks, social habits, or other expenses are costing you more than you expected. Pick out what you can realistically afford to give up, and cut back on those things. If you’re still struggling, our next section looks at how to make sure you stick to your budget.

How to stick to your budget 

Having a budget is one thing. Being able to consistently stick to it is another. This can be particularly challenging if you’re someone who finds it hard to say no to social events, through fear of missing out. After all, you’re in a different country – it’s only natural to want to experience new things. Here is some of the best advice for making sure you’re strict with your spending every month: 

Create a strict shopping list

Rather than heading to the shops and picking up what grabs your attention, instead create a dedicated shopping list. Tell yourself not to deviate from it too much (if at all). 

Also make sure to plan your trip around when you actually need different types of food. Milk, bread, and vegetables will go off quickly, so you should only pick them up when it’s necessary. By contrast, something like pasta or rice will last for a long time if unopened. If you spot a good deal, snap some up.

Lastly, avoid shopping on an empty stomach. This will help avoid the temptation to pick up snacks and other foods to binge on that you might regret buying later. 

Give yourself a buffer

Once you’ve worked out your budget, think about cutting another £50-100 off what you can afford to spend. That way even if you do go over your revised figure, you still have some wiggle room before actually running out of money. This could be a lifesaver in a month where a sudden expense crops up.

Move money around

Try to move money into separate accounts, to avoid the temptation of spending more. Use one concentrated account for social spending. This restricts how much you splurge in a month, without dipping into the funds you need for your essential costs. You can even go as far as to break this down by the week – set up a direct debit to transfer in a set amount periodically. 

Be wary of sales

Sales might seem tempting, but unless it’s something which you know is going to be life-changing (or a bulk food product which isn’t perishable), it’s best to steer clear. Things are a little different if you know a sale is coming up (such as Black Friday or Prime Day), and you’ve already saved up some money for it. The key is to avoid a sudden splurge just because of a favourable price.

Micro-budget week-to-week

If you’re struggling to stay on top of things on a month-to-month basis, shift to a weekly plan. This allows you to focus more acutely on where your money is going, while making it easier to calculate and track your spending. By more regularly assessing your spending, you’ll be able to spot any trends which you might want to cut out.

Choosing a good UK student bank account

Not all bank accounts are created equal – especially if you’re a student. Banks are always looking to target this demographic (as they’ll want to convert you to loyal customers when you eventually graduate, earn a decent wage, and need somewhere to store all your funds). 

As such, it pays to look around at some of the options available to you, and find one which matches your specific needs. Usually, this comes in the form of a no-interest overdraft, as well as sign-up incentives which appeal to the account holder. 

Here are some of the best options currently available: 

HSBC

This popular bank has one of the largest overdrafts on the market. They offer a flat rate of 0% interest for any time you dip into it, with the total figure ranging from £1,000 to £3,000 according to your year of study. There’s also a £100 cash bonus for anyone making five debit card transactions in the first 30 days of their account opening. 

Natwest

You’ll receive just £500 as a 0% overdraft in your first term of first year, but this jumps swiftly to £2,000 at the start of your second. What’s more, you’ll also benefit from an £80 cash bonus, as well as a four-year Tastecard (worth in the region of £140). In order to receive these you need to opt for mobile banking and paperless statements.  

RBS

RBS uses the same tiering system as Natwest when it comes to their 0% overdraft payouts – although they do require you to deposit as much as £750 every six months. This should be easily achievable as a result of any maintenance grant or additional scholarship payments. You’ll also be offered another £80 cash bonus, with no prerequisites this time. 

Santander 123

All undergraduate students will receive £1,500 as a 0% overdraft in their first three years of schooling. This rises to £1,800 if you take a fourth year, and £2,000 if you have a fifth. In order for this to become active, you need to deposit £500 every term (which again should be covered by any maintenance grants). Sign-up bonuses included a four-year 16-25 railcard, which costs around £100 and saves you a third on all network rail travel. 

If you’re unsure about what you need to open a bank account in the UK, it’s important to remember to gather the following information: 

• Your passport

• A driver’s licence (if you have one)

• Any identity cards

• Any recent utility bills 

• A tenancy agreement or mortgage statement 

• A council tax bill

University-specific scholarships

Most UK universities will offer specific scholarships aimed at international students. These will usually be based on academic achievement in your native country. To find them, head to the website of a uni, click on anything relating to “fees”, “funding”, or “scholarships”, and browse your options. 

The Chevening Scholarships

British Embassies around the world offer these prestigious scholarships to postgraduate students. They’ll hand-pick individuals who have demonstrated impressive results academically, while also balancing voluntary commitments which demonstrate good leadership abilities. There are normally more than 1,500 Chevening Scholarships offered for every academic year. 

The Commonwealth Scholarships

If you’re from a low or middle income commonwealth country, you could be eligible for this boost of funds. You’ll be selected based on previous academic results, as well as your motives for studying (with emphasis placed on choosing those looking to improve the quality of life in their home country). 

Euraxess UK

This set of grants has been created to help those who are looking to concentrate on a career in research. It’s available to both professional and postgraduate students moving from abroad. 

Money saving tips and advice for students

While cutting corners can sometimes be a little tough, you’ll find as a student that it’s a common way to make sure you can enjoy as many nights out and day trips as possible. If you want to have a little extra cash in your pockets at the end of the month, here are some useful tips:

Start a penny jar

If you find yourself picking up a lot of loose change which you can’t really spend on anything, add it to a penny jar. At the end of every month (or term) take the jar to your bank and have them add it to your account. Having this extra little top-up every so often helps to give you a nice buffer. 

Learn cost-effective recipes

Cooking might take a bit of time and practice, but it’s significantly cheaper than eating out, getting a takeaway, or sometimes even buying a frozen ready meal. There are loads of delicious and healthy meals you can enjoy for £1 or less (if you ration out the ingredients properly). This can save you hundreds over the course of a month. 

Look for deals and discounts

While it can be hard to balance the books as a student, the good news is that most companies are aware of that. As such, you’ll be able to benefit from things like dedicated loyalty cards for certain supermarkets, NUS card discounts, and even money off things like travel with 16-25 railcards.  

Sell what you don’t need

If you notice anything lying around which you no longer use, but could be valued in a new home, think about turning to eBay or Facebook Marketplace. You’re unlikely to get too much for secondhand items, but if they’re not something you’re emotionally invested in, it makes sense to trade them in for some extra cash. 

Get a part-time job

If you have the time and ability to balance it alongside your studies, a part-time job is a great way to keep your funds topped up. This is only something you should try if you know that it isn’t going to have an impact on your ability to study. Just remember that those on a student visa can only work temporary jobs and nothing permanent.

Mint

This centralised hub of all things financial gives you the chance to more easily stay on top of your money. You can track multiple bank accounts, compare the price of household bills on a month-to-month basis, and create dedicated subcategories for different types of payments – like nights out, weekly food shops, reading materials, clothes shopping, or even just stationary. 

Digital payments

Sending and receiving money from your family back home used to be a challenge. Digital payment services like WorldRemit make it easy to quickly send funds anywhere in the world – with little-to-no transaction fees, and at an exchange rate which is fair and accurate. This provides huge peace of mind for parents fretting about their child’s financial situation, while also giving students the chance to send money home for birthdays and other celebrations. Transfers are encrypted for ultimate levels of safety.

WiseBread

This hub of financial resources is a great place for newcomers to the world of money management to start their journey. You can filter results by “college” or “university” to find guides which help with the everyday task of staying above your overdraft limit.  

Calculator tools

There are a wide range of tools available to help you better calculate spending, transport costs, accommodation, energy bills, and other small costs. UCAS in particular has a tool which will give you the average cost of all these expenses, and more, in accordance with the exact university you’re attending.

Discovering a city on a student budget

Being in a new place is always exciting, no matter what the reason. While your primary focus may be on your studies, you’ll find there’ll be plenty of downtime for you to explore the part of the UK you’ve moved to.  This might be something you’re anxious about – particularly if you’re concerned about spending more than you can afford. Luckily, there are a host of ways to get about and enjoy your new home, without putting a strain on your wallet.

Look for free events and exhibits

Most larger cities offer free admission to things like historical sites, museums, and art galleries. This is a great way to get out, learn something new, and get a taste of what your new home is famous for. 

Do a walking tour

Walking tours are often quite cheap (usually you’ll be asked to provide a tip at the end by the guide). While it might feel a little touristy, this is a fantastic way of seeing parts of a town or city you might not have realised even existed. It’s also a really good way to naturally learn the lay of the land. 

Spend the day with a local

If you’re fortunate enough to befriend a fellow student who’s from the area, ask them to take you out for an authentic local experience. They’ll probably be able to show you some spots which most students don’t know about, as well as pointing out some of the best value-for-money places to eat, drink, shop, and party. 

Head outside of the central student area

If you’re feeling brave enough, take a trip to a region which is outside of the core student hub. Buses are usually the best bet when it comes to value, while a taxi might set you back a fair amount. It’s advised to do this with a friend, in the interest of safety.

One of the most important facets of money management is understanding what your average cost of living is going to look like. While there will always be variables on a month-to-month basis, it should be possible to lock in some of the larger costs. Let’s take a look at those now.

The cost of tuition fees

University is rarely cheap, no matter what country you’re from. While this cost won’t have as much of an impact once you actually arrive, it’s still important to factor it into your decision. 

Prices will vary depending on what type of course you choose to enrol for, as well as what level of education you’re at. The lowest fee for an international undergraduate in 2021/22 was £11,400, capped at a total of £32,081.

Medical degrees in the meantime rose up to £67,892, while a postgraduate degree could reach as high as £51,360. An MBA could rise to £63,000. While these numbers sound extreme, an average course is more likely to cost you between £12,000-£25,000.

The type of course you’re studying will have a large impact on how much you can expect to pay. The following are the average prices for an international postgraduate student, depending on the nature of their degree: 

• Classroom-based – £16,081

• Laboratory-based – £18,613

• MBA – £21,754

The higher costs of postgraduate classes are often subsidised by scholarships and other grants, which is what tends to allow universities to charge more. 

Remember, the main factors which will determine how much you can expect to pay are: 

• How prestigious the uni you’re applying to is 

• The type of degree you’re enrolling for 

• The level of study (undergraduate, MA, MBA, PHD etc.)

• How long your course is going to last 

If you’re unsure of how much your course will cost, make sure to reach out to any universities ahead of time for clarity.

Average UK rental prices

The global housing market has seen some sharp inclines in recent years. And while things appear to be balancing out somewhat, you’ll find rental prices in the UK can still set you back a fair amount in certain areas of the country. 

Recent data found that the average rent for someone living in the UK in June of 2022 was £1,113 per month. This is dependent on what part of the country you’re studying in, as well as how central you are in your city or town.

Here’s how much you can expect to pay depending on what part of the country you’re living in:

With Greater London skewing the figures somewhat, it’s handy to know that without this area the national average is £936 a month. For those worried about the cost of living in London, you’ll be pleased to know that a 1-bedroom apartment outside of the city drops in price to £1,282 a month.

The average cost of living in the UK

For those looking to study in the UK, it’s important to remember that it does tend to be higher than most average countries. A recent study found the UK to be the 12th most expensive country in the world to live in – although it was cheaper than other popular destinations like Australia and the US.

It’s impossible to accurately know how much an individual is going to spend, as we all have very unique lifestyles and priorities. That said, the British Council estimates the following as what students from overseas should be realistically budgeting for:

• £20-£30 for a weekly shop

• £30 a month for travel expenses

• From £10 a month for a mobile phone contract

• Around £40 a month for a gym membership

For those looking for a more tangible breakdown of what to expect when it comes to prices, UpGrad Abroad has a handy list of necessary items and their average cost. Some of the most common goods will set you back:

Just as with any of the numbers we’ve looked at, this is bound to change depending on the area you live in. Student discounts could also see the price of some of these reduced.

The cost of moving country for university

One factor which it’s easy to overlook as an international student is the cost of physically moving your life – even if it is only temporary. While these shouldn’t scare you too much, it’s important to prepare yourself for some of the hidden costs of moving.

The travel cost

This doesn’t just mean the flights when moving. You might also want to scout out the area you’re going to live in ahead of time. It’s also important to take into account that you’ll be returning to your homeland every so often to visit family. 

The cost of shipping

If you’re moving any larger items with you, you’ll also have to pay for shipping services. These can be expensive – particularly if you’re moving between continents. It’s worth doing some research and finding a service which covers what you need at a reasonable price. 

Visa fees

This one is a little more set in stone. It costs exactly £363 to apply for a student visa for anyone living outside of the UK. This is money you need to have and set aside before you can apply. 

Exchange rate fluctuation

An often overlooked factor in moving countries is the potential for exchange rates to impact how much money you have to spend. 

Using a real-world example, someone moving from China to the UK would have had to spend 8.96 Yuan for every £1 in August of 2021. In August of 2022, they’d only need to spend 8.20 to match the valuation of £1. While this showcases a beneficial instance, the opposite can also be true. 

This exact scenario isn’t favourable for any Brits in Canada, for example – who suddenly find their currency stretches nowhere near as far as it did before. While this isn’t something you can plan for, it’s important to keep in mind when building your buffer.

Discounts available to international students in the UK

The good news is that there’s loads of discounts available to students in the UK – and some of these are specific to those from overseas. Make sure to check out some of the best in order to save a few pounds every time you go out.

The Bank of England offers a 12-part course on understanding finances and money management: 

https://www.bankofengland.co.uk/education/education-resources/money-and-me

In order to successfully be accepted for at a UK university, you first need to apply for a student visa: 

https://www.gov.uk/student-visa

Money Saving Expert provide a detailed breakdown of some of the best UK student bank accounts currently available: 

https://www.moneysavingexpert.com/students/student-bank-account/

Save The Student provide more general tips and advice for anyone moving to the UK to study:

https://www.savethestudent.org/international-students/10-things-international-students-need-to-know.html

Student Beans is a one-stop shop for discounts and promotional offers for people attending university: 

https://www.studentbeans.com/uk

Study UK provide step-by-step support on how to apply to a degree course at a British university: 

https://study-uk.britishcouncil.org/plan-studies/apply

UCAS has a dedicated page for international students, which serves as a hub of information for any questions they might have: 

https://www.ucas.com/undergraduate/applying-university/ucas-undergraduate-international-eu-students

The UK council for international student affairs is a centralised hub which provides help, guidance, and support for international students on British shores: 

https://www.ukcisa.org.uk/

This communication is intended for marketing purposes only and does not constitute or provide legal, tax, investment or financial planning related advice.