Being a student often means juggling multiple responsibilities, from academic pressures to maintaining a social life. On top of this, financial worries can creep in, adding an extra layer of stress. If you are feeling anxious about this, I am sure the last thing you need is someone to remind you of this of course, so this guide is to equip you with the right strategies to manage things and keep your finances and peace of mind under control.
1. Acknowledge your anxiety
The first step in managing financial anxiety is to acknowledge that it exists. It's okay to feel stressed about money; many students do. Ignoring your feelings or trying to push them aside can often make them worse. Instead, try to identify what specifically is causing your anxiety. Is it fear of not having enough to cover rent? Worry about accumulating debt? Once you pinpoint the source, you can begin to address it.
2. Create a realistic budget
One of the most effective ways to combat financial anxiety is to create a realistic budget. You can stay proactive by doing this at the beginning of term to stay on top of any worries you may have and stop spending from getting out of hand. Start by listing all your sources of income, such as student loans, part-time job earnings, or support from family. Then, outline your essential expenses and whether they are daily, weekly, monthly, termly etc. This will include things like rent, bills, groceries, and transportation. Then you want to make sure you allocate funds for each category, leaving room for savings and unexpected costs with the money you have left. Many students find they run low towards the end of term having spent all of that student loan in one go, but if you put it in a savings pot and take a little bit out each month, you will feel much better knowing you have stability. You may find that with all of your outgoings you are in a deficit, and in this case you will need to evaluate whether to cut down on non essentials, or find additional sources of income such as a part-time job. A clear budget not only helps you manage your money better but also provides a sense of control, reducing uncertainty and anxiety. You can also use budgeting tools or apps to track spending and avoid surprises. For more tips on budgeting as a student, check out this guide.
3. Seek Financial Guidance
If you're struggling to manage your finances, make sure to take advantage of the support King’s has on offer, as well as all of the financial resources out there for students:
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Money Advice Service: Offers free, impartial advice on all aspects of personal finance, including budgeting, saving, and debt management. You can find answers to frequently asked questions here, or you can contact an advisor.
4. Break down big goals into small steps
It’s easy to feel overwhelmed when thinking about big financial goals, like paying off your overdraft or saving for the future. Instead of focusing on the end goal, break it down into smaller, manageable steps. For example, set a goal to save a small amount each week or month, rather than worrying about saving a large sum all at once. Achieving these smaller goals can boost your confidence and reduce anxiety.
5. Practice self-care
Financial anxiety often comes with physical symptoms like headaches, trouble sleeping, or feeling constantly on edge. By making sure you are taking care of yourself physically and emotionally, you may find you are able to cope with potential sources of stress easier. Ultimately, whilst it’s important to budget and manages your finances well, money worries are still worries, so you need to ensure you’re looking after your mental health properly. Stress can be detrimental to both your physical and mental health. Your health should always be your top priority. Did you know that stress can have an effect on your memory and concentration? That’s as well as the quality of sleep you get. So, practising good self-care is really important.
6. Avoid comparison traps
It’s easy to compare yourself to others, especially in a university setting where you might see friends spending money on things you can't afford. However, everyone’s financial situation is different, and comparing yourself to others can exacerbate anxiety. Focus on your own goals and remember that living within your means is the best way to ensure long-term financial stability.
7. Build a support network
You don’t have to manage financial anxiety on your own. Talk to friends, family, or fellow students who might be experiencing the same concerns. The worst thing to do if you are feeling stressed is to bottle it up and keep it to yourself. Though simply talking may not bring your money troubles to a halt, sometimes, just knowing that others are in the same boat can make your worries feel less isolating. They may also be able to support you emotionally or in other ways. Plus, you never know what tips and strategies your friends and family may have that you could use!
8. Stay informed, but set boundaries
It’s important to stay informed about your finances, but constantly checking your bank account or worrying about money can feed anxiety. Set specific times to review your budget or financial situation, and then focus on other aspects of your life. Maybe you could make sure that on a Sunday night you review what you need for the week ahead, at the same time as planning your time. Setting boundaries like this helps prevent financial worries from taking over your day-to-day life.
Financial anxiety is a common challenge for students, but it doesn’t have to overwhelm you. By acknowledging your anxiety, creating a realistic budget, seeking guidance, and practicing mindfulness, you can manage your stress and take control of your finances. Remember, it's a journey, and every small step you take towards financial stability is a victory. With the right tools and mindset, you can navigate your student years with confidence and peace of mind.