London. The city of dreams, iconic red buses, and a student life you’ll never forget. If you’re planning to make London your home while you study, let’s have a serious conversation on budget. The cost of living in London is famously high, and a little financial reality check is the best way to prepare. Balancing student life in a new city comes down to budgeting for a few key areas: accommodation, food, travel, and your social life. These expenses will shape your lifestyle and help you create memories, all while teaching you how to save.
Here’s a breakdown of where and how you can save, spend and make your money go further.
How to Cut Down on Your Biggest Expense—Accommodation
When you choose London as your new home, your accommodation will be the biggest part of your budget. Making a smart decision here can help you manage your finances and avoid stress. The best student accommodation in London goes beyond just a place to sleep. It covers everything you need in one single payment. This means you can budget easily, knowing that your rent includes things like all your bills, and sometimes even extras like laundry, housekeeping, and access to services. Most importantly, choosing a place in a prime location or just minutes from your university can save you valuable time and money on travel.
Read our blog on how to pick your student accommodation for more.
The Second Squeeze is Food & Groceries
Cooking at home will be your best friend in London. A monthly grocery bill for one student can be anywhere from £150 to £300. While eating out is tempting, a single meal at an inexpensive restaurant can cost around £20.
Supermarkets like Aldi and Lidl are known for their great prices. Also, check for student deals and apps that offer discounts on groceries and takeaways.
Getting Around in London
London’s transport system is fantastic, but it can be pricey. A full-time student aged 18 or over is eligible for an 18+ Student Oyster photocard, which gives you a 30% discount on travelcards for Tube, bus, tram, DLR, London Overground, and most National Rail services in London. A monthly travelcard for Zones 1-2 is roughly £103, and you’ll want to carefully calculate which zones you’ll be travelling in most.
A student Oyster card is a must. Also, consider walking or cycling for short distances to save money and stay active. Go for an accommodation that gives you free bikes within the rent you pay so that you do not have to keep a separate budget for exploring the hottest food spots around the city.
Social Life & Entertainment
A night out in London can be expensive, but there are plenty of ways to have fun without breaking the bank. On average, students spend anywhere from £50 to £200 per month on socialising and entertainment. If you are a coffee lover, you will love Lewisham. There are so many cafes in Lewisham worth giving a shot.
Take advantage of student-only discounts. Your student ID, or a UNiDAYS/Student Beans account, can get you discounts on everything from cinema tickets and clothes to museums and restaurants. Look out for free events and activities, many of which are easy to find around the city.
The Bottom Line
Life in London is a mix of tradition and innovation. You can watch the Changing of the Guard and discover the latest pop-up market on the same day. All you need is careful budgeting and making choices that help you live a life to remember. The picture below shows the cost of living with and without choosing an all-inclusive student accommodation.
Living and studying in London is a once-in-a-lifetime experience. By being smart with your money, you can focus on what really matters, your studies and creating unforgettable memories.
