Starting university is a massive step. For many, it is the first time living away from home and managing their own finances. It is exciting to meet new people and see new places, but it can also feel a bit scary to be handling everything yourself.
Whether you are just starting your first term or you are a final-year student who struggled to make ends meet last year, this guide is for you. University is a time to focus on your career and social life. However, without a plan, you might run out of cash before the month ends.
This guide offers helpful tips and a downloadable monthly student budget planner. This free budgeting resource may help you manage your income to meet your bills… and still have fun!
Why is budgeting important for students?
Most students live on a fixed income, such as student loans, grants, or a part-time job. This money has to last a long time. According to Save the Student, 76% of UK students worry about making ends meet.
Budgeting isn’t about stopping the fun, though. It’s about making sure you don’t run out of money for rent or food. Learning how to track your spending now builds great habits that will help you for the rest of your life.
Print the student budget planner off at the end of each month and fill it in based on the month ahead.
Click here to download the student budget planner
What should you consider before creating a student budget?
Before you start writing figures down, keep these points in mind:
- Make it last: Your student loan usually arrives in three big payments. It needs to last the whole term, so don’t spend it all in the first week!
- Choose the right bank account: Look for a student account with cashback offers. Don’t just choose an account because they offer a gift. Instead, look for the best long-term deal.
- Know your income: Check your student finance is sorted so you know exactly how much is going into your account and when.
- Decide between needs and wants: A “need” might be rent or groceries. A “want” is a new pair of trainers or a takeaway.
Understanding how to budget as a student means being honest about where your money goes. If you’ve lived away from home before, check your bank app regularly to see what you usually
How to calculate your monthly income and plan your expenses
To start, you need to know exactly what is coming in. Your income might include:
- Student loans
- Wages from part-time jobs
- Bursaries or scholarships
- Help from family
Because loans are paid termly, divide the total amount by the number of months in that term. This gives you a “monthly allowance.”
Next, list your “must-pay” costs. Use a student budget calculator or a simple list to track:
- Rent and utilities (gas, electricity, water)
- Food shopping
- Travel (bus passes or train fares)
- Phone bill and internet
- Books and course materials
Remember to use student discounts like a 16–25 Railcard to bring these costs down.
Budgeting for extra costs
University life isn’t just about bills. You should also plan “fun money” for eating out, cinema trips, or society fees.
It is also wise to save a small amount each month for surprise costs. This could be something like a friend’s birthday gift or an emergency trip home. Planning for these unexpected costs can stop you from going over your budget.
Steps to complete the student budget planner
Follow these five simple steps to get a clear picture of your money:
- List your income: Add up all the money you receive each month.
- Write down your essentials: This includes your “must-pay” bills.
- Add extras: Include your fun money and one-off costs.
- Do the maths: Subtract your total costs from your total income.
- Adjust: If you are spending more than you earn, see where you can cut back.
What if your expenses exceed your income?
If your outgoings are higher than your income, don’t panic. First, look at your “wants”—can you cancel a subscription or cook at home more?
If you are still struggling, contact your university’s student finance team. They often have hardship funds or advisors who can help you manage your money safely.
How can you increase your income as a student?
If you need more cash, consider a part-time job or freelance work like tutoring. You could also sell clothes or items you no longer use online.
Always check if you are eligible for extra grants or bursaries, as you don’t have to pay them back.
How can you reduce your spending without missing out?
You can still have a great social life on a budget. Try “batch cooking” (making big meals to freeze) with housemates to save on food. Set a spending limit for nights out and stick to it.
Always ask if retailers offer student discounts, as many shops and restaurants do.
What should you do with any remaining budget?
If you have money left at the end of the month, you could start an “emergency fund” for things like a broken laptop.
If you want to think long-term, you could look into ISAs & Investments to prepare yourself for the future.
Are there free student budget planner templates available?
Follow the steps below to use our free student budget planner template:
- Step 1: Add up all your income. For your maintenance loan, divide the term payment by the number of weeks in the term to find your weekly amount.
- Step 2: List your “necessary” bills (rent, phone, food).
- Step 3: List things you want but don’t need. This makes it easier to cut back.
- Step 4: Add one-offs and treats, such as birthdays or holidays.
- Step 5: Add steps 2, 3, and 4 together. This is your total spending.
- Step 6: Subtract your spending from your income to see what is left.
Use a pencil so you can change the numbers as you go.
In summary
Remember, university should be a balance of study and fun! Keeping your finances in order may help you achieve this.
Remember that:
- Budgeting reduces stress and keeps you in control.
- It helps to always know your total income versus fixed outgoings.
- Student discounts and batch cooking are a great way to save money.
- A student budget calculator is a great tool to help you stay on track.
