As a financial education charity working with young people, we understand the challenges that university students face when it comes to managing finances.
The transition to university life can be an incredibly fun one – newfound independence, calling your lecturer by their first name (weird, right?), discovering good coffee, but it also introduces more financial responsibilities than you’ve ever had before. That means students will need sound, personal decision-making.
Keep reading for our essential budgeting tips to ensure financial stability and success during your university years and beyond.
7 essential budgeting tips
- Create a realistic budget
The cornerstone of effective money management is a realistic budget. Begin by calculating your total income, which may include student loans, scholarships, part-time job earnings, and parental contributions. Next, list your essential expenses such as tuition fees, rent, utilities, groceries and transportation.
Don’t forget to allocate funds for textbooks, course materials, and an entertainment budget (keep an eye on this one!). By comparing your income to your expenses, you can identify areas where you might need to cut back or save.
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- Track your spending
Tracking your spending is crucial for staying within your budget. Utilise budgeting apps (there’s loads of free ones out there, like Monzo) or a simple spreadsheet to record every expense, no matter how small. This habit not only helps in monitoring your spending patterns but also in identifying unnecessary expenditures. Make reviewing your spending a regular thing – it can really help you save money.
- Prioritise needs over wants
This can be a tricky one but distinguishing between needs and wants is vital for your financial wellbeing. Learning to recognise spending impulses and avoid impulse purchases can help keep your budget on track – in other words, prioritise your essential expenses first and see what you have left afterwards.
Of course, it’s tempting to indulge in as many social activities as possible, but always have in the back of your mind that there could be cheaper alternatives, such as cooking at home, attending free university events or exploring student discounts, to make your money stretch further.
- Build an emergency fund
An emergency fund acts as a financial safety net for unexpected expenses. Aim to save a small amount each month, even if it’s just £10. Over time, this fund can provide peace of mind and prevent you from resorting to high-interest loans or credit cards in emergencies.
- Ask for help when needed
Don’t hesitate to ask for advice if you’re struggling with money management – most universities offer financial counselling services to help students navigate their finances and you’d be surprised by the amount of information and guidance they can give you.
- Utilise student benefits
Make the most of your student benefits. Take advantage of student discounts, travel passes and loyalty programs to reduce your expenses. Loads of retailers, restaurants and service providers offer discounts specifically for students, so always carry your student ID and inquire about potential savings before you purchase.
If you’re shopping in stores some places don’t always advertise their student discount offerings at the checkout so it’s always best to ask, just in case!
- Plan for the future
You don’t need to get too deep, but starting to consider long-term financial goals, such as post-graduation expenses and paying off student loans will mean you’re starting to establish good financial habits in the present. Remember, effective money management is a lifelong skill that will benefit you well beyond your university years.
Helpful resources for students
Finally, we’ve compiled a handy resource list with some of our favourite apps, tools and websites for students to help master their money:
- Monzo (banking app)
- Student Finance Calculator (budgeting tool)
- 16-25 Railcard (save 1/3 on train travel)
- UniDays (student discounts)
- Student Beans (student discounts)
- TOTUM (student discounts and cashback scheme)
- National Union of Students (NUS) (lots of advice, resources and tips on student life and money management)
- MoneySavingExpert (guides and tools to help you save money while studying)
To help students navigate this crucial aspect of adult life, MyBnk offers several online learning courses designed for young people including around borrowing and debt, scam avoidance and more. You can also check out our money tips for uni guide for more information.
Featured photos by Marten Bjork, Brooke Cagle and Priscilla Du Preez 🇨🇦 on Unsplash.
