Money for students and young adults
From applying for student finance to understanding your first payslip, the years around study and early work bring a run of money firsts. Get the basics right — how student loans really work, what your payslip means, and why to stay in your workplace pension — and you avoid the most common, costly mistakes.
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Student finance and loans
Apply early for student finance through your national student finance body. The maintenance loan is means-tested on household income, while the tuition fee loan is not. Both are repaid together later through the income-based system.
A student loan behaves more like a graduate contribution than a debt: repayments depend on what you earn, not what you borrowed, so for most people there is no benefit to overpaying.
Starting work
Your first payslip shows Income Tax, National Insurance and a pension contribution. Check your tax code is right — the wrong one is the most common reason for paying too much tax.
Stay in your workplace pension under auto-enrolment: your employer pays in too, so it is rarely worth opting out even on a low salary. Start a small savings habit from your first payday.
Go deeper on money for students and young adults
Student loan repayment explained: when and how much you pay
UK student loans work nothing like normal debt: repayments depend on what you earn, not what you borrowed, and stop automatically if your income drops. This guide explains the plan types, thresholds and when the balance is written off.
Read the explainer →Student finance explained: tuition and maintenance support
Applying for student finance is the first big money decision many young adults make. This guide explains the two loans, how much you can get, and the extra grants and support available beyond the headline loans.
Read the explainer →First job money checklist: payslips, tax and pensions
Your first pay packet comes with a payslip full of deductions and a few decisions that can pay off for decades. This checklist covers the money basics to get right when you start work.
Read the explainer →
Common questions
Does household income affect student finance?
It affects the maintenance loan, which is means-tested on household income. The tuition fee loan is not means-tested.
Should I opt out of my workplace pension in my first job?
Usually no. Your employer and the government both contribute, so opting out throws away free money. Only consider it if you genuinely cannot afford it.