The Best Budgeting Tips For Students

When your student loan comes in, budgeting can be a tricky skill to navigate, especially as a first-year student. Managing your money effectively is important to learn as soon as possible; not only will it make your uni experience less stressful, but it will also set you up for success when it comes to renting or owning your own in your adult life. 
 

From using student discounts to utilising student bank accounts, we’re here to offer you support on how to spend and save your money wisely. Of course, there are bills to pay and food to buy, but that doesn’t mean you can’t treat yourself from time to time! With our top ten budgeting tips for students, you’ll be an expert before you know it. 

It’s not uncommon for university-goers to solely rely on their student loans. For some, this is manageable and can cover bills, food, transport – everything they need to get by. But if you’re someone who is looking for a more active experience, you might want to consider getting a part-time job. Having extra income weekly or monthly will be extremely beneficial when it comes to budgeting since you won’t have to worry about when your next student loan payment is due. It will contribute towards any non-essentials that you might want, including nights out, takeaways and new clothes.
 

The first step to budgeting is to calculate your total income (this can include your student loans, salary, benefits etc) and your total outgoings of essentials (including utility bills, rent and water). You may also have subscriptions and gym memberships that should also be deducted, although these aren’t necessities. Once you have calculated your take-home pay, divide this by the number of weeks there are in your term and this will be your weekly budget. You can then further budget how much you want to spend on food shopping and toiletries, social occasions and luxuries. 
 

Student bank accounts are beneficial to have while you’re at university. From slashing monthly maintenance fees and overdraft fees to low or no ATM costs, a student bank account can cut back unnecessary spending. With the help of Money Saving Experts, you can find in-depth information to help you bag a bargain and make informed decisions on your bank of choice. As great as student bank accounts are, try not to get too excited about 0% overdrafts. In fact, it’s best to avoid them altogether where possible. They can have a negative impact on your credit score, so only use them in emergencies.
 

Another great option is Monzo. With student accounts available, Monzo is a great way to manage your money thanks to their handy ‘pots’. This feature allows you to transfer money to the customisable saving feature, keeping you in full control of how and where you spend your money. Doubling as a savings account, you can also reach your long-term goals even quicker.
 

Once you’ve received your student loan and calculated your weekly budget, it’s a great idea to set up a standing order into a spending account. This prevents you from going over your budget since you don’t spend what you can’t see. If you are tight for cash one week, you can transfer yourself a little extra – but overall it will help you break unnecessary spending habits and get that payday feeling every week! 
 

Whether you create one on a spreadsheet or prefer it hand-written, budget planners are a great way of managing your money and finding out where you are spending unnecessary amounts so you can improve your spending the following week. 

 

 

 

Similarly, you could also try out budgeting apps. Having visual access on your mobile phone makes it even easier to see where you can spend a little extra. 
 

Emma, a money management app that has been accredited by Forbes, is a great example of this. The financial super app was created to help you invest, save and most importantly track your money. Using open banking to combine information from your bank accounts, savings accounts, credit cards and investments, Emma allows you to categorise your transactions, set your total monthly budget and more. This allows you to work on your spending habits month after month as you can see where you made unnecessary purchases. 
 

One of the perks of being a student is that many brands and leisure activities offer generous discounts, so you can switch your non-essential budget even further. 
 

UNiDAYS is a highly recommended student discount app to use. From food and fashion to beauty and lifestyle, you can expect to get around 10%-20% off (though some might be higher or lower) on popular brands, including Adidas, Boohoo, Tommy Hilfiger and more.
 

Alternatively, you could also use Totum. With hundreds of savings on tech, clothing, dining and more, it’s the number one student discount card for a reason! 
 

Even if you only save small amounts at a time, it all adds up in the end. So if you are going to treat yourself, it’s definitely worth investing in these apps.
 

If you’re a frequent train traveller, you should really look at purchasing a 16-25 Railcard. Offering up to ⅓ off your train journeys, a rail card can save you £167 a year on average. Whether you’re visiting a different city or using the train to commute to your university, a Railcard is essential. With the money you save, you can then increase your weekly or monthly spending budget, giving you extra cash to spend on the things you want.
 

A lot of the time, students have to pay for bills alongside their rent. That’s not the case here at Novel. Your payment is inclusive of your utility bills (with reasonable consumption, of course) so you don’t have to worry about finding a provider. However, if you find yourself in a situation where you do have to supply your own gas and electric provider, be sure to search on comparison websites beforehand, such as Money Super Market. You can then make informed decisions on which provider suits you and your energy consumption the best, and help you to budget your gas and electricity bills more accurately.
 

It’s easy to fall into the habit of impulse buying when you’re walking around your supermarket, hungrily shopping. By creating a meal plan, including breakfast, lunch, dinner and snacks, it’s so much easier to take control of your shop. This way, you can avoid purchasing foods that will end up going to waste. If you’re a victim of impulse buying, you might also want to consider ordering your food shop online. This way, you can see how much you are spending before you check out and remove anything that doesn’t fit into your budget. Where possible, you might want to consider freezing leftovers too. This will make sure you have backup meals and reduce your food waste. 

 

 

 

Once you have established your incomings and outgoings, it’s a lot clearer to see where you can be more lenient with your spending habits – so we suggest you start there. Then you can see your weekly and monthly budget, so it’s clear how much you can spend on food and social activities. Now that you know where to start and maintain a healthy budget, give these budgeting tips for students a go! It’s a great skill to have, ensuring you have enough money left over for social engagements. 
 

Looking for student housing in London? Secure your spot at Novel today.