As any student will tell you, one of the most challenging parts of heading off to university is being responsible for your own finances for the first time.
That’s why it’s important to develop good budgeting habits early. Not only will it stop you going in panic to the Bank of Mum & Dad – or worse still, taking on unnecessary debt whilst you’re in education – but living within your means will go a long way to giving you the peace of mind you need to properly focus on your studies.
So, whether you’re starting university this month or you’re already well into your studies, here’s a rundown of the most useful budgeting tips you’ll need:
- Work out a budget plan
It may sound basic, but the foundation of all financial responsibility is balancing your income and expenses.
You’ll need to know the value of your student loan, along with any grants, scholarships or bursaries you’re receiving. Next, are you in part-time work, and/or are you lucky enough to have parents who can give some added support? These sources will comprise your income as a student; work out the combined total.
Next, list your fixed monthly costs – e.g.:
- Rent and utilities: These will likely be your largest expense – so make sure you’re clear about exactly what is included in your rent (i.e., are internet or utilities included in the bill?)
- Food and groceries: Another big one. Creating set meal plans (where you know the cost of all ingredients) can be helpful here, and once you’re settled in, you’ll be able to estimate weekly or monthly costs based on previous spending
- Transportation: This includes public transport, fuel, or bicycle maintenance
- Mobile phone bill, subscriptions and insurance
Once you subtract the above from your income, whatever you’re left with is your disposable income for the month. Congratulations!
If you know you’re prone to overspending, you may want to use budgeting tools and apps like Yolt, Emma, or Money Dashboard to help track and stay within your limits.
Monzo and Starling Bank also offer real-time spending notifications, and you can even create spending categories to see where your money’s going.
- Prioritise essentials
Whilst they may not be fun to spend money on, essentials—rent, utilities, and food—should always be your first priority.
Ensuring you cover these before you start splashing out on leisure activities or down the pub will keep your financial stress to a minimum. If you need to stretch your budget further:
- Look for affordable housing: Consider student accommodation or shared housing with roommates to cut costs
- Shop smarter for groceries: Buy own-brand products (a lot of the time, you won’t tell the difference…), use loyalty cards and shop in budget supermarkets like Aldi or Lidl to make the pennies go further
- Energy and water conservation: Your parents weren’t lying – turning off lights and heating when not needed is a must! Also, make sure you’re splitting bills with housemates fairly so no one’s paying more than they have to
- Don’t be too proud for a student discount
As a student, you have access to a huge array of discounts on everything from electronics to clothes to food. UNiDAYS, TOTUM, and Student Beans are popular apps that compile student discounts across various retailers. Examples include:
- Retail stores: Major chains like ASOS, Apple, and Boots offer discounts – often ranging from 10% to 30%
- Restaurants: Chains like Nando’s and McDonald’s regularly do student deals
- Travel: Students can save significantly on travel with a 16-25 Railcard, which provides 1/3 off rail fares across the UK, or discounts on bus and metro travel
And always carry your student ID and check for student discounts when shopping online or in-store. Over time, these savings can add up.
- Learn to cook (seriously!)
Eating out, ordering takeaways and even grabbing coffees to go can seriously chip away at your budget faster than you think – and so cooking at home is an easy way to save.
Plan meals in advance so you’re not tempted to impulse buy. And always get non-perishables like rice, pasta and tinned goods in bulk as it’ll work out cheaper per unit.
Finally, it saves both time and money to batch cook as much as possible – you can split your meals into individual servings to freeze for later.
- Get good at finding the free stuff
Many universities offer various free resources that can help you cut costs – for example, check if your uni library has copies of your course textbooks you can borrow (or failing that, e-books you can access).
Some courses also provide students with free or discounted access to software like Microsoft Office, Adobe Creative Suite, or even statistical tools like SPSS.
And once you’re finished working for the day, look out for ways to socialise without spending by attending free lectures, film screenings and student union events being held on campus.
- Know public transport is your friend
Uber may be convenient, but it’s usually not even close to the most cost-effective way to get around. Instead, opt for the public transport route wherever possible and take advantage of student bus passes or railcards.
If you do need to use public transport regularly, plan your routes in advance to avoid unnecessary journeys and costs.
Otherwise, walking is free and good for your health – so make your daily commute on foot if it’s feasible!
- Get a part-time job
It’s fairly common nowadays for students to boost their income through part-time jobs, which come with the added plus of valuable work experience for your CV!
Your university will likely have job openings – such as working in the library, student union or as a tutor – whilst the retail and hospitality industries (restaurants, clothing shops etc.) tend to offer flexible hours that make them ideal for student schedules.
Alternatively, if you have a specific skill such as graphic design, writing, or coding, you could look into freelancing as a way to earn extra money while working on your own terms.
- Don’t forget to save for emergencies
When money’s tight, saving for a rainy day can seem like a far-away luxury. But having even a small emergency fund can be crucial to handling unforeseen expenses like a broken laptop or last-minute travel costs.
Many banking apps let you automate your transfers, so set aside a small amount each month into a savings account: even £10-£20 per month can come in handy in a crisis.
Having this safety net will let you rest just that bit easier – and reduce the need to turn to credit or loans when disaster strikes.
Note:
This information is for education purposes only – it does not constitute financial advice and should not be acted upon without taking professional advice.