How To Budget At University

For most university students, the move to student accommodation is the first time they live away from home, whether that be in a studio apartment or shared halls. What you’ll quickly come to realise is how important managing money and budgeting is when you’re fending for yourself. Between managing accommodation costs, food, and making the most out of student life, budgeting can be hard. Here, we explore how to manage your money while at university.

Budgeting At University

Knowing how to budget at university is key to help you save money. While talking about finances and money might seem boring or not something you know much about while living at home, it’s a vital life skill worth getting the hang of. Living away from home, having to pay for food, bills, and even fund essentials, your coursework, and don’t forget the fun, you’ll need to save where possible so you know that your income covers your needs. With that said, here are the best student budgeting tips to help you save at university.

How To Calculate Your Student Budget

Budgeting is easier than it sounds. At its most basic, it involves listing all the money you’ve got coming in, tracking how much you spend, and seeing how it balances out. Then, you can see where you spend the most and start saving where needed. Let’s dive in, step-by-step:

1. Establish your income

Firstly, you need to work out how much money you have coming in. This sets the parameters of how much money you have to spend.

If you rely on your student loan, this is usually paid in sync with the academic terms – typically three instalments throughout the year. So you have to consider this and ensure your budget matches up with your income for those 3 months, or you risk your instalment running out.

Also, consider every possible source of income that you may be getting. This means your maintenance loan but also extra money if you are receiving a bursary or grant, help from parents, earnings from a part-time job, and any savings you currently have.

2. Estimate your spendings

Next, you need to figure out where your money is going. Use your bank statement from the previous month or do a trial month and see how much you spend. You can even simply make a list of what you need each month and estimate spending on essentials such as bills.

Try splitting your outgoings into two categories: essential and non-essential. Essentials are the things you need, and what you spend on these will determine how much money you have left over for the non-essentials or ‘wants’.

Essentials might include:

• Rent/accommodation
• Groceries
• Bills (council tax, gas and electric, water, broadband, TV license, phone bill, etc.)
• Transport (trains, taxis, bus, petrol, insurance and road tax if you drive)
• Course materials

Most students won’t be paying many bills as most student accommodation comes with energy and council tax included but its important to work out what you are required to pay and incorporate it into your student budget.

Non-essentials might include:

• Nights out (alcohol, club entry, taxis, etc)
• Eating out and takeaways
• Hobbies
• New clothes
• Beauty expenses (haircuts, nails, eyelashes, etc)
• Any memberships such as Gyms
• Subscription services (Netflix, Amazon Prime, Disney+)
• Trips away, travelling, and events
• Gifts and charity

3. Calculate your budget

Once you’ve got your expenses laid out, it’s time to break it down into a budget. You can do this on a weekly or monthly basis. However, it can be better to budget weekly. If you opt for monthly, it is easy to go overboard at the start of the month and end up struggling by the end.

OK, let’s dig in. Prepare yourself — this part can take a lot of maths!

A term at university is 3 months (12 weeks long) so:

1.  work out your total income for a term
2. add up the total of essential expenses for the same period of time
3. subtract your total expenses from your total income
4. divide that number by the number of weeks in a term.

That gives you your weekly budget and how much extra you have to spend on non-essential things each week. If you want a monthly budget, just divide by 3 instead.

Here’s an example:

• Let say your income for a term is £4,000 and your essentials add up to £2,500 in that same 3-month term
• £4,000 – £2,500 = £1,500 leftover to spend or save in that 3-month period
• To calculate a monthly budget: £1,500/3 months = £500 leftover a month
• To calculate weekly: £1,500/12 weeks = £150 a week

An easier way to do this is monthly – divide your student loan by 3 automatically, and you know your monthly budget. Then just add in any extra income from savings or a job since those are usually paid monthly as well, and you’ve got a total amount.

A helpful tool for calculating your budget is the UCAS Budget Calculator.

4. Set yourself goals

Finally, set yourself some goals. If you see yourself spending more money and are struggling, see where you can cut back. For example, if you are spending too much on takeaways, consider getting into cooking and finding some new recipes or create your own takeaway at home!  Another common one is spending too much money on taxis and UBER. It’s easy to say ‘it’s just a fiver or a tenner’ but it adds up in the end. See where you can cut back and save money, it’s all about setting goals to boost your income and your savings.

Ways To Save Money At University

If you are spending more than you are earning, which is a common problem among university students, or are just looking to boost your income and savings, there are a few ways you can cut back and save money with our student money savings tips.

1. Evaluate what you’re buying

Ask yourself if you want or need things, as it’s important to treat yourself every now and then. Just make sure it’s within budget and sensible!

2. Find out what you can get for free

As a student, there are things you can get for free while at university. These may include Council Tax, medical prescriptions, and course materials such as books. This can help cut your budget and help you save while at university.

3. Get student discounts

Check for student discounts, many places give students a discount such as in clothing shops, events, and tickets such a cinema. You can shop smart and get discounts with cards, such as the Totum Card, to get discounts from high street shops and online. And get loyalty cards for supermarkets and collect points to get coupons.

For students commuting, you can save on travel too. With a 16-25 young persons railcard to save a third on rail fairs and the Student Oyster Card when travelling with the London Underground systems.

4. Save on food 

Try doing a weekly food shop or buy in bulk this way you’ll save money and trips. Getting your groceries delivered might seem easier as well, however, you might buy more food than you usually do and the delivery fee is an extra cost as well.

You can also cut out and reinvent spending such as the daily coffee, meal deals, or takeaways. They might all seem like easy options, but making and bringing in your own meals will save you money.

Don’t worry, though. There are ways you can save money if you decide to eat out, including looking at discount vouchers, sharing with friends, and eating at cheaper places such as pubs. Read more in our article on 10 Budget-Friendly Tips to Eating Out for Students.

4. Bargain hunting 

Look for deals where possible, such as on food, your bills, even your bank account. You can save money just by switching providers or shopping around. Try to compare prices and see where you can get the most for your money and where you can save.

Buying second-hand is also a great way to save money as a student. You’d be surprised what things you may need that people sell for cheaper in charity shops, on Facebook Marketplace, or apps like Depop, Vinted or eBay. Find new clothes for less, or things for your course such as study books.

5. Plan in advance

If you have an event or a holiday coming up you need money for, planning ahead with help you budget and manage your expenses. For example, during the festive season, it can be hard not to overspend, but there are many ways to do Christmas on a budget. 

6. Save!

Every month you get a paycheck, start putting a set amount in your savings account. This will help you save automatically and spend less as well.

7. Get extra income

As well as saving money, if you have the time on your hands, looking for ways to increase your income will help you as well. Consider looking into part-time or weekend jobs, selling things you don’t need anymore or turning a hobby into a side business.

8. Student life on a budget

W all know that student life is all about partying, socialising, societies, and eating out. While it may seem daunting to cut these out, you don’t have to! You just have to balance and be smart with it. Throwing a good party can be low-budget; all you need is to plug in some speakers and have everyone bring their own beer. For more, check out our post on How To Throw A Student House Party On Any Budget.

Budgeting As A University Student

That is pretty much all there is to budgeting. It isn’t as scary as it sounds. It’s up to you now — once you get into a routine it’ll get easier. Just make sure you stay organised. There are several apps to help you manage your student loan if need be. Just remember to be sensible and be your own person – it doesn’t matter what your friends are doing with their money, you’ll thank yourself for saving money later.