Student life can be challenging, not only when it comes to your studies but also when working out your student budget.
The average student will often have to consider the best ways in which they manage their money, honing their spending habits and setting themselves money goals in order to maximise their budget.
Here, we’ll explore the best ways for students to save money, manage their student loan, student accommodation and focus on essential costs.
How to effectively budget as a student
The cost of living in the UK has been an ongoing challenge for many students so considering how you budget can be a key part of avoiding money worries.
Drawing up a weekly budget or monthly allowance and working out your outgoings can really help you learn what are essential expenses and what you can avoid.
As a student, you also need to consider what kind of financial support is available and the best ways to access student discounts too as these can help you save extra money.
Follow the below to work out the best ways to budget:
- Assess how much money you have coming into your account at the start of each term.
- Work out the amount of money that will come out of your account over the course of the term.
- Deduct your outgoings from your income, then divide it by the number of weeks in a term. This should give you an idea of how much money you have to live on each week.
Student Outgoings
Here are some essential costs which will impact most students and their bank balances over the course of the academic year.
Of course, there are variable expenses and moments where you might accidentally spend more than you intended but these costs are at the core of your budgeting. By keeping an eye on them, you should be able to work out how much money you need to live on.
University:
- Tuition fees
- Accommodation costs
- Course supplies including textbooks and stationery
Household bills:
- Contents insurance
- Gas/electricity/water
- Broadband and mobile phone
- TV licence
- Weekly food shop
- Council tax (although the majority of students will not need to pay it)
Travel:
- Public transport including rail/bus/tube/coach
- Car costs including insurance
Other:
- Gym membership
- Drinking and eating out
- Clothes, haircuts
- Books
- Subscriptions including Netflix, Amazon Prime, Spotify
- Large one-off purchases such as a bike or laptop
- Special occasions including Christmas and birthdays
- Festivals
- Holidays
Student bank accounts
A student bank account is designed just for university students. Unlike standard current accounts, students are treated to benefits including offers such as free railcards and interest-free overdrafts.
There are some essentials you need to consider when choosing the best student bank account for you.
Overdraft facility – A lot of banks offer 0% interest on overdraft fees for their student accounts. However, it’s important to check the small print to see how much is on offer and when you might have to start paying any interest. Also check the terms and when you might be required to start paying money back.
Ease of use – In the past, students would have to rely on visiting a branch to manage their finances but now many banks provide apps where you can do this and monitor your finances. Do your research and make sure the customer experience is as smooth and as easy as possible.
Perks – If you’re looking for great offers alongside your money, then do your research into what you might get for opening a student bank account with each lender. Some perks include railcards, Taste cards, gym passes and more.
Have more than one student bank account
Student accounts come with decent extras so you can only have one at a time.
However, this doesn’t mean you can’t have other bank accounts. You could put your student loan and wages in one account, then transfer money to a separate account for paying bills and direct debits. You could also open a separate savings account where you can store any extra money you might come into.
Switching bank accounts can also be a way of saving money and taking advantage of any incentives lenders will offer.
Banking apps
For students who prefer to manage their finances via their mobile device, there are plenty of budgeting apps available that can help you save more money.
MoneyLover
This free app allows users to receive notifications about any recurring direct debits, implement a savings plan and scan receipts so you can keep track of what you spend.
Wally
Wally is a budgeting app that lets you view your accounts, track payments, analyse your spending and set savings targets.
HyperJar
A free tool for budgeting and payments, and also has a function for group-shared expenses. This is particularly if you live in a shared house and you and your housemates split bills.
Student loan
Your student loan is usually paid into your bank account in three instalments, one at the start of each term.
This money needs to last, so you need to work out a budget so you spend the money wisely and are not left short at the end of each term.
Student discounts
Students are entitled to plenty of discounts, whether it be eating out or in different retailers. It’s always worth asking if there are any offers that you can take advantage of to help you save more money.
You can also check websites and platforms that can help make it easier for you to maximise your income and budget effectively.
How to find the best deals
UNiDAYS is a fast, free digital platform that provides exclusive student offers. ASOS, Adidas Apple tech and Virgin Experience Days are all featured.
A Totum card (previously NUS Extra) provides access to more than 350 student discounts in the UK, in store and online.
If you don’t go to university with a car, you’ll more likely be using trains. If you spend more than £90 a year on train journeys, you should consider getting a 16-25 Railcard, which offers a third off off-peak train tickets and tube fares.
Part-time job
Sourcing a part-time job can be beneficial to a budget when studying but it is worth considering how this will impact your studies. It’s sensible to see what sort of time commitment this requires to make sure it doesn’t take up too much and have a detrimental impact on your learning.
The benefits of a job can go beyond your finances – students can gain work experience, develop key skills and evidence skills on your CV.
Online job boards are the most popular way to find part-time work. Indeed, Glassdoor, Totaljobs, LinkedInJobs, Reed, and Prospects all great resources.
Student Jobsites include e4s, and just student jobs, and Student Job.
Save money
There are some easy and simple ways to save money when it comes to your income and making your cash go further.
Buy secondhand or nearly new
Whether it be your books for the year ahead or updating your wardrobe, buying secondhand can be an effective way to shop. Charity shops can be great too if you’re looking to kit out your kitchen and make savings.
Elsewhere, online options include Vinted, Freecycle, Facebook Marketplace, eBay and Depop.
Meal plan
This sounds tedious but being sensible about your weekly food shop can really help you cut back on your outgoings as a student.
Do a cost-effective ‘big shop’ at the start of each week and minimise the number of takeaways you have when it comes to food. Buy supermarket value food products too rather than well-known brands. If you shop at the end of the day, then you should find that many food items are discounted and available at a cheaper price.
If you are living in a shared house, then assess whether doing a food shop for the household is more cost-effective than doing this individually.
Spread the cost
Sometimes, you can buy now pay later on certain goods and this can be an effective way of budgeting for big ticket goods and items such as a laptop.
However, if you do choose to pay for something like this, then just remember to check the terms and conditions of any deal you agree too. Keep your eyes on any interest on repayments as it could be significantly more expensive in the long-term.
Avoid cash machines that charge to withdraw
Some cash machines charge you for withdrawals, but if you’re willing to look further, there will likely be a free one nearby.
Be especially cautious of this on a night out. Often cash machines within bars or nightclubs will charge you for using them.
Managing debt
If you do end up in debt, then it’s important not to keep this to yourself. The best way forward is to share any concerns with your university and contact money advisers too.
Some include debt charities such as MoneyHelper, Step Change or the National Debtline, where you’ll receive free and impartial advice on how to maintain your student finances and look after your cash.
STUDY AT SAE
SAE offers two-year accelerated degree courses in growth creative media industries – Audio Production, Content Creation & Online Marketing, Game Art Animation, and Games Programming – all aimed at helping the next generation of creative professionals get ahead.
