Student Budgeting
By Owen Burek in Student Money
Managing a budget is not as hard or even as depressing as it sounds. The difficult part comes first, with making the initial commitment to live and stick to your new student budget. If you get that far, the future’s bright.
It is true that living on a budget is one task every new student has to face sooner or later: whether you’re sensible and separate your loan into neat weekly chunks as soon as it graces your bank account, or much later in the year when you’ve blown three quarters of it and your budget is a tiny £10 a week. Either way, knowing how to budget is a vital part of student-life.
You’ll be able to spot the two above specified types of student, one will be frugal and prepared, probably a fairly put together person with a pencil case and notepad, bringing their lunches into uni with them. The other will be asking to borrow a pen and scribbling on a scrap of paper, swigging a coffee at the beginning of term, attired in lovely new clothes, later to be seen malnourished living off cupboard remnants of rice cakes and hummus. Probably.
What is a Budget?
A budget is just a written plan specifically focused towards spending your money. Of course, you spend money – the budget serves in helping you to spend it a little more wisely, hopefully.
Sort out a Budget
Step One
Firstly you need to determine a budget to spend. You can use the free budget calculator offered by Sainsbury’s by clicking the image below.
The alternative step is to get a budget worksheet. You can either create one yourself, or use one that’s already been made (see below). To make your own budget, simply jot down your income in one column and your expenses in another column. Compare the two and you’re on your way to getting a solid grasp on your student spending.
You can download our ready-made student budget sheet, a clever little Excel file that you can also print off.
By getting started with a budget, you will begin to understand and learn a lot about your money situation. And that is can prove to be very valuble as a student. You’re probably earning less than your spending, so keeping a track of your money is important. It seems obvious, but remember you will have to pay back all money you borrow! Keep in control.
Step Two
Now start looking at your expenses. You’ll see that on top of student fees, rent and all the other big costs, there are lots of ‘little’ extras that add up to quite a bit. Even if you’re aware you’re spending money when you actually do, the budget will allow you to see how this is affecting your wallet on a longer term basis.
Step Three
Start saving. Now you know where to target, you can have a go at cutting some spending back or try saving money in some areas. Check out our going out, shopping, food, student discounts and money sections on the site to learn more.
Step Four
Continue to concentrate on curbing your spending. As a student things can be a lot cheaper, so take advantage of all the student discounts and free student offers.
Cutting costs
Here are some practical savings steps that should help your new budget:
• Sort out your wants against your needs. Concentrate on spending money only on needs.
• Don’t drink (too much), smoke, or do drugs. They are all unhealthy for a start, addictive, and cost loads of money. You don’t need them, so at least think and try cutting back.
• Get a good savings account. You can even earn on a portion of your student loan if you have some spare.
• Minimise waste. Eat the crusts.. you know you love them.
• Recycle study materials – pencils, pens, and paper.
• Don’t spend your money around plans you make. Make plans around the money you have available and can afford to spend.
• Don’t be influenced by friends’ spending habits.
• If you’re in catered, make the most of it. If not, find out about the free lunch seminars!
• Try getting an on-campus job.
• Use shopping coupons. Shop in the sales. Compare and shop online.
• Get down to the second-hand, vintage clothes outlets. Ryan vintage (Northern Quarter) is great.
• E-mail or write more rather than phoning home.
Extra Tip
A great tip with student budgeting is the direct debit trick.
If you start off optimistic, get your loan and put it straight into an account, not your student account but another separate one. This way you have the opportunity to have a lovely direct debit do the budgeting for you, feeding your loan gradually into your student account week by week. The amount of money you set up for the direct debit will be determined by the amount you came up with by using our student budget sheet calculator.
You might even be able to treat yourself to a bit of savings if you’ve a tad left over, a wonderful perk if you like a cheeky holiday or festival over the summer months.
There are hundreds of more savings tips and tips on student budget calculator, many you’ll come across in other areas of the site. Taking the time to manage your student budget at university will help you immensely. These decisions you make now will affect you later in life. As always, use your time and money wisely!
Last updated 6th April, 2012
