Lana Oconnell
University is an exciting time, but it can also be daunting, especially if you're managing your finances for the first time. Creating a student budget is a great way to ensure you're not scraping the barrel at the end of each month and missing out on the things you enjoy while struggling to afford the essentials. Budget calculators, trackers, and other tools can help you manage your money at university and avoid debt. They tell you where your money is going in real-time, helping you calculate your living costs and income during your time at university.
| Characteristics | Values |
|---|---|
| Purpose | To help students manage their money at university and avoid debt |
| Input | Income (e.g. maintenance loan, part-time job salary, grants, bursaries, parental contribution, savings), monthly living costs, and outgoings |
| Output | How much money is left for rent, whether there is a shortfall or excess of cash, and advice on accommodation |
| Additional Features | Alerts for heavy spending, ability to customize, and compatibility with various devices |
| Tips | Move money into a separate account, set up a direct debit for weekly expenses, and prioritize essential expenses |
| Alternative Tools | Spreadsheets, mobile apps (e.g. Money Lover, Cleo, HyperJar), and the UCAS budget calculator |
| Support | University finance departments can provide confidential advice and support |
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What You'll Learn
Income and outgoings
When creating a student budget, it is important to consider both your income and outgoings. This will help you manage your money effectively and ensure you are not left scraping the barrel for cash at the end of each month.
Income
Your income will likely consist of your student loan, any grants, bursaries, sponsorships, or scholarships you receive, and any cash from parents or savings. If you are working a part-time job, this will also contribute to your income. It is important to have a clear idea of how much you will be receiving from each source and when. For example, your student loan may be paid in instalments, so you need to know how much you will receive and when.
Outgoings
Your outgoings will include your regular, ongoing expenses such as rent, utilities, phone bill, and gym membership. It is important to consider both your essential and non-essential expenses. Essential expenses are those that you must have to live and study, such as rent, food, travel, and books. Non-essential expenses might include nights out, entertainment, and hobbies. The average student spends £247 per week, with this amount skyrocketing to £427 during Freshers' Week. It is important to be mindful of your spending habits to ensure you are not left with a shortfall of cash.
Tracking Income and Outgoings
There are various tools available to help you track your income and outgoings, such as budgeting apps and spreadsheets. These tools can notify you of recurring transactions and help you stay on top of your finances. It is important to find a budgeting method that works for you, whether that is an app, spreadsheet, or good old-fashioned paper and pen.
Sticking to a Budget
Once you have calculated your income and outgoings and set a budget, the challenge is sticking to it. This may involve moving your money into a separate account and setting up a direct debit to transfer your weekly budget into your everyday account. It is also important to give yourself a buffer and not budget down to the last penny, as unexpected expenses may arise. Prioritising essential expenses and leaving any splurges until the end of your budgeting period can help you stay on track.
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Budgeting tools
There are many different budgeting tools available, from spreadsheets to mobile apps and third-party apps. You can also create your own budget using paper and pen or a spreadsheet program such as Excel. If you're glued to your smartphone, an app for your budget might be the right option for you. Free student budgeting mobile apps worth downloading include Money Lover, Cleo, and HyperJar. Money Lover allows you to track your finances and manage your overall spending across all your devices, while Cleo works through Facebook and takes a read-only look at your spending to help you keep track of your finances. HyperJar is a free tool for budgeting and payments, and it also has a function for group-shared expenses, useful if you and your housemates split bills.
If you don't have a smartphone or would like to try something other than an app, the UCAS budget calculator is a good place to start. You can also create your own budget using a spreadsheet or paper and pen. Save the Student has a comprehensive student budget calculator that will help you calculate your living costs and income during your time at university. It is geared more towards parents than students and is a bit number-heavy, but if you complete it thoroughly, it will tell you if you have a shortfall or excess of cash for each year of your course.
When creating a budget, it's important to consider both your income and your outgoings. Your income might include your student loan, any grants, bursaries, sponsorships, or scholarships you're eligible for, any cash from parents, any income from part-time jobs, and any savings you plan to use. Your outgoings will include regular, ongoing expenses such as rent, utilities, phone bills, and gym memberships, as well as any one-off or special costs. It's also a good idea to give yourself a buffer in case of unexpected expenses.
Once you've created a budget, the hard part is sticking to it. One way to do this is to move your money into a separate account that you don't have easy access to and set up a direct debit that transfers your weekly budget into your daily account.
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Student bank accounts
Fees
Some student bank accounts may charge monthly service fees, but these are often waived if you are between the ages of 13 and 24. It's important to read the fine print and understand any potential fees associated with the account, such as overdraft fees or transaction fees.
Overdraft Protection
Many student bank accounts offer overdraft protection, which can help you avoid fees if you accidentally spend more money than you have in your account. This feature may be included for free or may come with a small fee.
Mobile Banking
Most banks offer mobile banking apps that allow you to easily manage your account on the go. This can include features such as depositing checks, transferring money, and receiving notifications about your account activity.
Shared Ownership
If you are under 18, you may need to open a joint account with a parent or guardian. This can give them some control over your spending and allow them to monitor your account activity.
Budgeting Tools
Some banks offer budgeting tools and calculators to help you manage your finances and stick to a budget. These can be useful for tracking your spending and ensuring you don't overspend.
Rewards and Perks
Some student bank accounts may offer rewards or perks, such as cashback on purchases or the ability to earn points towards rewards. These can be a nice bonus, but be sure to read the terms and conditions carefully.
When choosing a student bank account, it's important to compare the features and benefits offered by different banks and decide which ones are most important to you. You may also want to consider the convenience of the bank's locations and ATMs, as well as any personal recommendations or reviews from other students.
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Budgeting tips
Firstly, calculate your incomings. This could include your student loan, grants, bursaries, sponsorships, scholarships, income from part-time jobs, and any savings you plan to use. If your parents are contributing, agree with them in advance how much they will give and how often.
Next, calculate your outgoings. This will include your rent, bills, food, books, and any other essentials. If you have a car, you will also need to budget for petrol and insurance. You can use a budget calculator to help you work out how much you can afford to spend on rent, or to see if you have a shortfall or excess of cash.
Now, work out your weekly budget. It is recommended to budget per week rather than per month, as it is easy to overspend at the start of the month and have nothing left at the end. To do this, work out your total income for a term, subtract your essential expenditure, and then divide the number you are left with by the number of weeks in the term. This is the amount you can spend on non-essential items each week.
To help you stick to your budget, you could try the 'standing order trick'. When you receive your student loan, transfer it into a separate account. Then, set up a recurring payment to transfer your weekly budget into your main spending account. This will help you to not overspend when you first get paid, and you can always transfer more if you need it.
There are also several apps that can help you to budget, such as Money Lover, Cleo, HyperJar, and Mint. You can also use spreadsheets such as Excel to keep track of your spending.
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Financial advice
Budgeting is an essential skill for university students, who often find themselves on a tight budget. Creating a simple student budget based on your income and expenses is a great place to start. This should cover your regular, ongoing expenses, such as rent, utilities, phone bills, and gym memberships, as well as any one-off or special costs.
There are many budgeting tools available to help you manage your finances and avoid debt. These include budget calculators, trackers, and mobile apps that can notify you of recurring transactions and help you keep track of your spending. You can also create your own budget using a spreadsheet or paper and pen.
When creating your budget, it's important to consider all your sources of income, such as your student loan, any grants or scholarships, income from part-time jobs, and savings. Calculate your incomings and outgoings to determine your weekly budget, and try your best to stick to it. It's also a good idea to give yourself a buffer for unexpected expenses.
If you're struggling with money, don't hesitate to reach out to your university or college's finance department for advice on hardship funds, emergency loans, and extra funding options. They can also provide guidance on other financial matters, such as scams, and connect you with other relevant services.
Remember, budgeting takes discipline, but it's a valuable skill that will help your money go further during your time at university.
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Frequently asked questions
A student budget calculator is a tool that helps students manage their money and avoid debt. It tells you where your money is going in real time.
Some examples of student budget calculators include the UCAS budget calculator, the Save the Student calculator, and the Shepherds Friendly Student Budget Planner.
When creating a student budget, you should calculate your incomings and outgoings. Your incomings might include your student loan, grants, bursaries, scholarships, parental contributions, income from part-time jobs, and savings. Your outgoings might include rent, utilities, phone bills, gym memberships, food, travel, and books.
