Remember how, when you were very young, some caring adult would release their coin purse, snag some change and encourage you into the shop to choose a sweet? Ah! To go back to those days when mum or dad would sneak you a few pence at the newsagents or candy store! Or maybe you nicked a few coins, here and there?

However you came by your money back then bears no resemblance to your relationship with money today. For one, because you are accountable for both your income and outflows and, for two, because you now know that the money at your disposal is not infinite. Nor is it perpetually available, as you may have thought, back then.

You're not alone in your new, painful awareness. A survey of university students conducted in 2021 revealed that:

  • 1/10th of all students have never budgeted
  • 74% of all students state they wished they'd received a better financial education, including budgeting at uni
  • average student spending per month exceeded their maintenance loan allotment by £340
  • 60% of students contend that maintenance loans do not reflect the cost of university life
  • the typical student budget is so meagre that over 3/4 of university students reported struggling to make ends meet
  • two out of five students took on extra work to budget for university expenses and food
  • the number of students dabbling in cryptocurrencies has tripled since last year
  • 76% of university students have considered dropping out

These are sobering statistics, aren't they? We could have just listed the first two to make our point: students receive precious little information about money, how to use it and how to make it last. And most of all, how to budget for university.

Let's not waste any time. Before you get caught with too much month at the end of the money (a nod to the Billy Hill song), let's go over what a budget for student looks like, how to budget for university and take a look at a student budget template.

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When to Start Budgeting for Uni

If you have your sights set on university education, you should start budgeting even before you sit your GCSEs. Does that make sense?

Let's say you want to go on a trip or perhaps take a gap year. It's not a simple matter of packing your bags and off you go; you need to get a passport (if you don't already have one) and pay for visas. You need traveller's insurance and a trip to the doctor to get precautionary shots, depending on where you want to go. You have to score transportation tickets there and back and have funds for food and incidentals while there.

All of that costs money.

Budgeting helps you avoid financial disaster from buying everything on credit
Paying by card without planning your spending is a recipe for financial disaster. Photo by rupixen.com on Unsplash

You could just rely on credit cards, provided your destination welcomes payment by card, and pay for everything later. However, as so many learn far too late, that's not the soundest way to manage your finances - not the least because interest fees add up quickly. Besides, if yours is the 'wing it' style of money management that would allow a trip without budgeting for it, there's a good chance you won't have any other expenses budgeted.

Those credit card bills will then bite much harder.

That's why, if you're planning a major expenditure such as a dream holiday or a university education - even if you plan to take online classes, you need to set money aside for it as soon as you commit to your plan.

Admittedly, as a Key Stage 4 student, you won't have access to much  money so budgeting for university will fall mostly on your caregivers' wallets. However, if you have a job, get birthday money or have things you could sell, you should set aside some of your gains.

That's a sound financial habit to adopt as early as possible; it will serve you well throughout your life.

What to Include in Your Budgeting Plan

If you're still in secondary school, you'll likely only have a general idea of the costs incurred at university. You can look up course fees and dorm room charges either on your preferred university's website if you already have such an institution in mind, or get a more general idea through an internet search.

It's questions like how much do students spend on food and how much the average student budget plan allows for going out and buying new clothes that likely stymie you. As you formulate your initial budget, you can leave those entries blank and fill them in later. The important thing is to account for every expense you might incur while at uni. Enter as many numbers as you can, even if they're just estimates.

It's like telling yourself "This is how much I'll need; where's it going to come from?" Or maybe, if you're the type to read to your dog, you could have this conversation with them.

Ideally, your student budget should list two main categories: essential and non-essential spending. Rent, food and transportation costs are essential, as are other bills such as your mobile and internet service fees. If you rent off-campus, you'll have to include water, gas and electric bills into your budget and, if you have a television, you'll need to pay for a license.

Obviously, you'll have fees related to your coursework: textbooks, lab or other specialist equipment. Writing implements and paper, fees for the printer/copier. All of these belong in the 'essential' column when drafting  your budgeting plan.

The non-essential expense category covers everything that makes university life fun: concert and cinema tickets, meals out - or, during exam season, takeaways; cover fees to get into clubs and the drinks once inside, taxis to get you home after the party... And then, there are personal care expenses: everything from shampoo to toothpaste, haircuts; paying for subscription services - Prime, podcasts and the like.

No matter how trivial you think any item is - maybe a book from your summer reading list? - if it costs money, it belongs in your student budget plan.

Use a spreadsheet or budgeting software to keep track of your money
You can keep track of your spending with high-end budgeting software or a simple spreadsheet. Photo by Carlos Muza on Unsplash

Example of a Budget Plan

It would be great if you already had a budgeting plan ready to flesh out within your first few weeks at university but, if not, it's never too late to formulate your student budget plan.

By now, you should know how much money you'll have coming in from maintenance loans, scholarships, grants, gifts and your own savings. Note that maintenance loans and bursaries will appear in your bank account in three instalments; once at the start of every term.

With your income established, it's time to list your expenses.

If you outlined a budgeting plan before arriving it's just a matter of filling in the blanks. The job is easily done by looking over your bank card activity since you arrived at uni. How much did you spend on food? Rent? Transportation? Did you have a meal out? How about that takeaway curry? Did you go clubbing?

The best time to nail down your budget is after your first month at uni. By then, you'll have a far better idea of average student spending per month by looking over your own expenses.

Keep in mind that during your first month, you'll likely incur substantial 'startup' costs - paying your rental deposit, buying your textbooks and school supplies, and purchasing durable goods like bedding and dishes for your flat. These are not likely to recur but you must still account for them. You should also think about what you'll need to help you focus on your studies.

Listing such one-off expenses in your 'emergencies' category will ensure that, should your laptop need replacing or another unexpected expense arises, you'll have the funds for it. And if you have no emergency crop up, that category makes for a handy savings device that will keep you afloat until you earn your first pay cheque, after graduation.

The following is an example of a budget plan:

Income/monthEssentials/monthNon-essentials/month
Maint. loan 470
bursary 500
work 580
Housing 300
Clothes
Bills
elec/gas
water
broadband 22
mobile 8
insurance
Haircuts/grooming
Transport Going out
Course materialsRestaurant food
FoodSubscriptions
Netflix
Spotify
Discord
Emergency fund 10Travel
Total 1550TotalTotal

Pro student budgeting tip: you'll receive your maintenance loan and bursary payments in a lump sum, you can either divide the amount you receive or multiply your monthly outlays by four to keep income and expenses in the same time window.

Working part time will help you afford your non-essential budget items
Working in a coffee shop could mean that your don't have to sacrifice your fancy coffee habit to stay within your budget. Photo by Tyler Nix on Unsplash

The A to Z of Budgeting at University

If A is developing a typical student budget as early as feasible - when you're in college at the latest, Z must be sticking to it, no matter what. If that means foregoing non-essentials so you don't spend more than you bring in, so be it.

Your student budget will change over time. As you progress through school, you'll likely incur more expenses. You may have to buy more costly equipment and supplies and the cost of living isn't likely to get cheaper, all of which will increase your spending.

By contrast, you might get tired of the club scene, discover you don't like drinking and find out your roommate prepares better meals than any restaurant, so you could slash those expenses from your budget. You might also earn money as a tutor or a different part-time job.

Thus, it's a good idea to revise your student budget going into each term or, at the least, beginning every new school year.

Keeping a handle on your money while in school is excellent training for managing your finances later in life, making budgeting for uni one of your first steps into adulthood. Congratulations!

Just be sure to safeguard your mental health as you navigate these challenges.

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Sophia

A vagabond traveller whose first love is the written word, I advocate for continuous learning, cycling, and the joy only a beloved pet can bring.