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How to manage finances while studying

It’s not always easy managing finances while studying or making your way through an apprenticeship. The good news is there are some simple tips and tricks that can help you manage your weekly bills, loans, and cost of living, so you can focus on getting qualified.

5 minute read

Balancing your finances and managing money while studying or working towards an apprenticeship isn’t always easy, but there are some simple things you can do to help lighten the load. Flexible budgeting, being careful when it comes to borrowing, working part-time, and finding ways to cut costs are just a few of the things that can help you get by. Even if things get a bit tight from time to time, picking up great money habits now, will set you up to last a lifetime.

Money management tips

Here are a few simple things you can do to help manage your money while you’re studying.

• Think about putting money aside regularly as part of your budget. Use this to pay for big purchases so you’re not caught short when these pop up.
• Buy your weekly groceries at the supermarket and plan out your meals in bulk.
• Make the most of public transport.
• Ask for student discounts where you can (don't forget your student ID).
• Buy textbooks second-hand if possible and re-sell them when you're done.

What you need to know about student loans

For a lot of New Zealanders, getting qualified usually means taking out a sizeable loan. Whether it’s through StudyLink or from another source, it pays to carefully consider the size of the loan amount before you sign on the dotted line.

The time it will take to pay off the loan should be one of the big things you consider, along with repayments, as large amounts of debt can take years to pay off. Here’s an example of how long repayments could take based on an average graduate salary of $50,000 (remember, your salary will most likely increase over time):

Total loan amount: $30,000
Annual salary: $50,000
Annual repayment amount: $3,260 
Repayment length: 9 years and 4 months

You can use the IRD repayment calculator to work out your repayments.

The forecast median repayment time for all borrowers who left study in 2020 was 6.6 years. It was slightly less for borrowers who stayed in New Zealand (6.1 years) compared to those who spent some time overseas (12.1 years), so it’s worth considering how moving overseas will impact your loan repayments if this is something you look to do in the future. You can find out more about what happens to your loan if you go overseas here.

Borrowing money for living costs

On top of course fees, living costs are another type of loan available to students through StudyLink. Depending on your situation, it can be useful, but it’s important to keep a close eye on how much extra debt you’re taking on.

The payments are made up of small sums that are deposited into your bank account on a weekly basis (rather than as a one-off amount) and get added to the total amount of your student loan. Borrowing money for living costs may seem small each week but it can really accumulate over the course of your study. Borrowing only what you need can make a huge difference in how long it takes to repay the loan and your future self will thank you for it!

Working part-time

Having a part-time income can be a great idea when you’re studying. Earning some cash and having a change from studying all the time can be good, plus you can gain some transferrable skills that may appeal to potential future employers. It will also look good on your CV when you finish studying.

That’s not to say it isn’t a balance – figuring out how and when to prioritise work and study can be tricky. Make sure you regularly communicate with your employer about your workload and let them know that your availability will be dependent on your study. Picking up a part-time job at your educational institution is a good way to earn some extra cash, with roles like tutoring and note-taking usually being available to under-grads.   

Saving while you study

One of the best ways to make the most of your money while you’re at uni is to set a budget. Websites like sorted.org.nz are great resources which can help you establish an effective financial plan. It’s also a good idea to speak to your bank – they can help get you set up in the best way to help manage your money. Make sure you're realistic when setting your budget, and don't be too hard on yourself if you get off track at first. An effective and flexible plan will help you establish healthy spending habits that will last.

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This article is solely for information purposes and is not intended to be financial advice. If you need help, please contact BNZ or your financial adviser. Neither BNZ nor any person involved in the material accepts any liability for any direct or indirect loss or damage arising out of the use of, or reliance on, all or any part of the content.

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