Ways to budget as a student | What should you consider?
Going to university can be both a major milestone in your life, as well as a challenging event. There is a new financial responsibility which many first-year students have not faced before, where managing bills and budgeting become crucial. Navigating the complexities of budgeting as a student can be a daunting task; however, there are simple solutions for student tenants to consider when managing costs such as student accommodation and other living expenses.
This guide will explore the various ways to budget as a student, and provide easy insights into managing finances and student accommodation.
How important is a budget when studying at university?
Budgeting as a university student is crucial for several reasons. Firstly, it helps ensure that you can cover essential expenses such as accommodation, rent, food, and any other student bills. Without a clear budget, it’s easy to overspend on non-essential items, such as going out, nightlife and leisure activities. Though this is also a major part of the university experience, without proper budgeting, these extra activities can leave you short of funds.
By managing a clear and concise budget, you can alleviate potential stress and allow yourself to focus more on your studies and social life, rather than worrying about financial shortfalls.
A well-structured budget also fosters financial responsibility, granting you future-proof and essential life skills. Learning to track your income and expenses can help you develop better spending habits, avoid unnecessary debt, and even save money for future goals, such as travel, postgraduate studies, or moving into your own place after graduation.
To simplify your budget, consider all-inclusive student accommodation. Mansion Student manages modern properties, where the rent includes all major utility bills, such as electricity, water, and broadband.
For more information, read our comparison guide on whether you should live in all-inclusive student accommodation here.
How do you create a manageable student budget?
Creating a manageable budget starts with understanding your income and expenses. Make sure to include all money going into your account, such as your student loan, any grants or scholarships, your income if you work, and any financial support from your family.
Expenses, such as your student accommodation rent, any bills, and memberships, will then be deducted from your total income. Divide these into fixed costs (e.g. rent) and variables (e.g. food shop and entertainment). You may find that you can make amends to your variable expenses to help budget better, leaving wiggle room in case of emergencies.
Consider the following when creating your student budget plan:
1. Regularly tracking your spending and saving: Try to record every expenditure each month to get an accurate picture of where your money is going. This can be done using budgeting apps, spreadsheets, or even a simple notebook. You may find that you can make simple subtractions for the following month and saving money in the long run.
2. Prioritise essentials: Determine your essential expenses and allocate funds to cover these first. Make sure you are keeping up to date with your accommodation rent and any other bills. If you are struggling, consider altering your budget plan.
3. Adjusting when necessary: Remember, your monthly budget plan is flexible. University life can be unpredictable, with expenses varying each month. Don’t be scared to adjust your budget accordingly to help you stay on track.
Browse our table below and use it for your next budget plan:
As you start to plan your new life at university, compare different student accommodation types to find the most suitable for your needs and budget. For example, halls of residence are often the preference for first-year undergraduates as they are a great way to meet fellow students and are located near the university campus. Whereas private student accommodations usually have a higher rent, though this is all-inclusive with bills and typically more modern facilities and features.
For more information, read our guide on the different student accommodation types and their average costs here.
Our top tips for budgeting as a student
Effective budgeting as a student requires a combination of discipline, awareness, and strategic planning. Here are some top tips to help you manage your finances and monthly budget:
· Look out for student discounts: Take advantage of student discounts on everything from your food shop to entertainment. Many high-street shops, cinemas, and restaurants offer discounts to students, which can significantly reduce your expenses.
· Cook at home: Though you may want to explore your new surroundings, eating out frequently can quickly drain your budget. Cooking at home is not only cheaper but often healthier. Planning and preparing your meals in bulk can save time and money.
· Utilising freebies: Many universities offer free resources such as textbooks, software, and access to academic journals. Check if these are available through your university’s library or online resources. Also, remember that fresher’s fair will have various freebies available in that first month.
· Find part-time work: A part-time job can provide a steady income and help alleviate financial pressure. Look for jobs on or near campus that offer flexible hours, allowing you to balance work and study. This may be more relevant to second or third-year students who might not be going out as much as they did in their first year.
· Monitoring your usage: If you are paying student bills other than rent, be mindful of your usage of electricity, water, and heating. Simple actions like turning off lights when not in use, taking shorter showers, and using energy-efficient appliances can lower your utility bills.
Why is choosing the right student accommodation beneficial?
Choosing the right student accommodation is a critical aspect of budgeting and overall financial well-being. The cost of accommodation is often the largest expense for students, so making an informed choice can significantly impact on your budget.
Consider looking for student accommodation that meets your specific needs. Though private student accommodation may have higher rent costs, this usually covers all bills and communal spaces and can save you money on other excursions.
Mansion Student provide all-inclusive student accommodations across the UK, in cities:
· Coventry
· Dundee
· Durham
· Leeds
Browse all our student accommodation locations here.
At each of our properties, we have an on-site hospitality team to support you and provide guidance during the tenancy length. We also offer modern, communal spaces for you and your flatmates to socialise, such as cinema rooms, outdoor spaces, gyms, and laundry facilities.
Make sure to arrange a viewing to see first-hand the student accommodation and to have the opportunity to speak with our staff.
For more information or to book one of our student accommodations for the next term, contact Mansion Student today.
Frequently asked questions
What are some budgeting mistakes that students should avoid?
Many students fall into common budgeting traps. Overspending on non-essentials, such as frequent nights out, takeaways, and impulsive purchases, can quickly decrease your funds.
Another mistake is not tracking spending; without monitoring your expenses, it's easy to lose track of where your money is going and miss opportunities to adjust your budget.
Find out more about financial issues that students should avoid with our guide here.
