Seven Top Student Budgeting Tips

This year has been a bit of a strange one with A-Levels results not going to plan for some people. I have no idea how I’d feel working hard towards something to not take an exam and be given a result. But regardless, university or further education is around the corner for some young adults. I’m here to help you with some student budgeting tips to ensure you make the most of your money while studying.

Student budgeting tips

Some people like me may choose to live at home during university and there’s nothing wrong with that. For me, it was the best financial decision I could have made. Although my social aspect did suffer from it. But for those who are choosing to move away chances are it will be your first time living away from home. So you’ll suddenly be paying for things you’re not used to like rent, broadband, and food.

The most important student budgeting tip I can give you is to create a working budget. Knowing how much you have to spend each week will help ensure you’re not left high and dry. Because no wants to eat beans on toast for the final month of each term when you’ve run out of money. Managing your money means you’ll have one stress to worry about.

How to create a student budget

With your student loan being paid in three instalments you need to look at how much you’ll get each term. Take into account any grants, bursaries, or additional income you may have. If your rent comes out at the start of each term remove this figure to start off with.

If you have any other set expenses such as broadband or bills (if you’re not in halls) and your mobile phone bill, work out how much you’d pay during that period and put that amount into a separate bank account to pay from. It may feel like you’re setting aside a lot of money but this means you’ll never be left without money for a bill.

Although if you’re heading up North and need Liverpool student accommodation then your bills are included so you only need to take into account one living expense.

Once you have your final figure divide it by the number of weeks between the loan coming in and your next loan. Include all of the holidays as chances are when you head home you’ll still want to go out and see old friends. So you’ll need money for that.

Now you know how much money you’ll have each week for additional spending. This will include your weekly shop, any nights out, supplies for your course, any travel costs, clothes, entertainment, etc. By doing this and sticking to your weekly budget you won’t be left poor at the end of the term. An easy way of giving yourself a weekly allowance is to open a Monzo account and keep the excess in a pot withdrawing your allowance each week.

Top student budgeting tips

Don’t overpay tax on jobs

If you work during term-time or in the summer break make sure you’re not overpaying on tax. Students are taxed like anyone else and if you earn under £12,500 (as of 6 April 2020), you shouldn’t pay tax. When you get a job you’ll automatically be charged tax so if you don’t earn enough over the year you’ll need to reclaim it.

Check out the HM Revenue & Customs website for how to apply for a refund. If you’re only working for a short time such as summer you can fill in a P50 4 weeks after your last day to claim. Although if you’re working for the whole year you need to wait until the end of the tax year in April to reclaim tax.

Get a TOTUM card

The TOTUM card was previously the NUS Extra card and you get 200+ student discounts in-store and online. This includes 10% off at ASOS, Superdrug, COOP, Topshop and so much more. Plus there are food deals like 25% off at Dominoes and free food at McDonald’s when you make a purchase. It costs just £14.99 for a year or £24.99 for two.

Student budgeting on train fares

A lot of university students don’t have cars so if you plan on using trains to visit friends, go back home or head to the local city then check out the 16-25 Railcard which cuts a third off off-peak train and tube tickets. It costs just £30 for a year so you’ll need to spend £90 on trains to make it back. But trains are expensive so if you use them frequently you’ll make it back in no time. If you have a TOTUM card or are signed up to Student Beans you can get 12% off a one-year railcard. There are other ways to save money on train fares here.

Rent, borrow or buy books second-hand

Course books can be expensive and chances are you won’t look at them again once your year/ course is over. Your university library will probably have a rush of people looking to borrow them but check out your local library if you only need it for a short period.

If you need a physical copy of the book check out Facebook Book Swap Groups, eBay, and Amazon for second-hand versions. Websites such as VitalSource can loan you electronic versions of textbooks for a whole year. And it generally works out up to 50% cheaper than buying new.

Deal in cash and don’t use your card

If you can’t trust yourself with your card (especially on a night out) deal in cash. Once you’ve sorted out your budget withdraw your weekly allowance in cash. Sometimes I find having physical cash makes me think harder about purchases as the spend feels more real. Plus you’ll know instantly how much you have to last the week out. We all know how easy it can be to pop things on a card without thinking about it.

Student budgeting tip- Be savvy with your food

Food can be one of the biggest expenditures whether you’re a student or not. But there are lots of small hacks you can do to try and save money. If you have enough fridge or freezer space available then batch cooking is a great way to go. Spend a few hours one evening/ afternoon or at the weekend and whip up a large dish and portion it out for as many meals as you can. Plus you’ll almost always have a freshly made meal that you only need to heat up. So there’s less chance of buying unnecessary food or takeaways.

Check out your local supermarkets/ Co-op etc near the end of the day for markdowns on food. Generally, it’s food with a short best-before or use-by date. But it can always be eaten that night or frozen for another day.

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