So you’re off to university and leaving home for the first time?! Congratulations! With Fresher’s Week just around the corner, money and budgeting is probably the last thing on your mind. However, learning how to manage your budget. is going to be a vital part of living independently for the first time. We’ve put together some top tips for budgeting as a student. You can thank us later...
Putting together a monthly budget will help you plan your spending, thus making student life less stressful – and a lot more fun!
When planning your budget, you’ll need to calculate your total income. This might include your student loans, earnings from part-time work and if you’re fortunate enough, contributions from parents.
You’ll then need to calculate all of your outgoings. As well as your rent and any bills, remember to include the costs of text books, travel to lectures and all importantly, the cost of nights out! Yup, you read that correctly. A budget isn’t just about the essentials; it should include the fun stuff too!
Ideally, your budget will be effective and healthy if your income exceeds your expenses.
By planning your meals, you’ll be able to shop wisely and only buy what you know you’ll use. Going into a supermarket without a plan can be disastrous for your budget!
It’s also worth considering where and when you’ll do your shopping. While both Aldi and Lidl consistently offer cheaper options, many supermarkets discount products later in the day. It might be worth doing your weekly shop on your way home from the student bar!
As a student, you’ll be able to enjoy many discounts so make sure you use them! Loads of retailers and businesses offer a student discount and if you’re not sure if they do, there’s no harm in asking!
Text books can be expensive and can add a lot to your budget. Try and look for second-hand books online or ask at your university about other students selling pre-loved books.
Just a word of caution though – make sure you’re buying the right edition of the book as they can be updated regularly.
If you’re worried about overspending on a night out, leave your card at home and just take the cash you’ve budgeted. If you haven’t got it, you can’t spend it! Just always be weary though that you have a bus fare or enough cash to get yourself home.
Remember what we said about discounts? Well if you’re a full time student and intend to live alone or just with other students, it’s worth knowing that you won’t need to pay Council Tax. Handy to know, right? You can check your eligibility here.
If you plan on travelling home fairly regularly, it might be worth buying a 16-25 Rail Card. A one year card costs £30 or you can get a three year card for £70 and this can save you a third off your train journeys.
Remember, by planning ahead and booking well in advance, you can often get cheaper fares than if you book last minute – and this goes for buses and flights too! So start getting organised!
Credit cards are best avoided whilst you’re studying, as you won’t have a steady, reliable income to pay it off. Interest can compound really quickly if you don’t keep on top of repayments so avoid credit cards if at all possible.
And just in case it needs to be said, don’t even consider pay day loans – studying or not! It’s never wise to take out a pay day loan as you’ll always end up paying significantly more than you borrowed.
Being a new student is exciting but it can be an anxious time too. If you’re struggling financially and need some advice, ask for help. The National Association of Student Money Advisors can offer assistance or another option would be Citizens Advice.
Please don’t struggle with financial worries alone – ask for help.
For further advice and information about budgeting, check out our Good Money Habits