The fresher budgeting planner: map your money as uni starts

Splurging your uni loan on late-night pizzas and 10 pairs of new trainers in freshers’ week might be fun (obviously it is fun), but it could leave you with 50p to live on when it comes to the last week of term. Using a budgeting planner can help you balance your spending so you don’t get caught out, but that doesn’t mean you have to live your first year like a saint either.

Check out our step-by-step guide to budgeting below, and don’t forget to take a look at our student budget calculator to stretch that loan as far as possible.

Why set a freshers’ budget?

Setting a freshers’ budget will help you enjoy your first weeks of uni life without having to worry about your bank balance. It can stop you from overspending on non-essentials like clothes, meals out and treats, leaving you with nothing in your account for household bills. Basically, it’ll save you a lot of stress and unwanted surprises.

Taking a few steps to plan out your budget will also set good habits for the future. Learning to balance your income and outgoings is a skill that won’t just serve you well through uni, but when you get your first paycheck and beyond.

How to set your budget

The first step to setting your budget is understanding exactly how much money you have coming in and going out each month or week. Whether you use a spreadsheet, a downloadable planner, or even pen and paper, doing some basic maths around your spending is the best starting point for setting your budget.

Start with your income

As a student, your income is probably not going to be as regular as it would be with a full-time job. Student loans are released every term, so you need to space this cash over the months between each instalment. This might be balanced alongside income from your own part-time work or side hustle, meaning the amount of money coming in may dip at certain times, like over the summer.

So when you’re totting up the money coming into your account, make sure you include all income sources, such as:

• Student loans
• Grants, bursaries, scholarships or sponsorships
• Your own savings or money given by your family
• Income from your jobs or side hustles

If you’re unsure what some of these sums might be, put in an estimate that’s on the lower side. This will stop you from calculating your budget based on ‘magic money’. Once you have your total income per term, you might want to split this into months or weeks, so you’ll know how much money you’ll have to spend.

List your outgoings

Just like you’ve done for your income, you need to list the costs that will be regularly leaving your account. This may include:

• Tuition fees (if this isn’t covered by your loan)
• Rent or accommodation costs
• Study or course costs (like books or online tools)
• Household bills such as utilities, mobile, council tax, TV license and broadband
• Insurance (car, contents insurance, etc.)
• Travel costs such as fuel, train or bus passes
• Subscriptions or direct debits such as your gym, Netflix or Spotify membership
• Food shopping and essential items, including toiletries or clothes

Once you’ve noted everything down, you can take it away from your estimated income. This will give you an idea of how much money you’ll have left over each week or month, which you can then divide into savings and fun money.

Ways to stick to your budget

You’ve done the maths, now comes the hardest bit–sticking to your monthly or weekly budget. Here are a few ways you can keep tabs on your spending habits.

Download banking apps

Many banking apps, such as Sterling and Monzo, have built-in budgeting tools which can help you stay on track. Emma and Snoop are good options if you have multiple bank accounts and want to track spending in one place. They do charge a small subscription fee, though.

Use separate accounts

Choosing the right student bank account is essential to managing your money well. For example, if your outgoings mean you’re likely to overspend at the end of each term, then a 0% arranged overdraft will be essential.

Having two separate accounts, one for big bills and the other for spending, can also be helpful. For example, you have account A, which your loan is paid into, and all essential bills go out of. You then set a direct debit with your monthly or weekly allowance to go from account A to account B. That way, you know your main bills are covered and exactly how much you have to spend.

Save, don’t splurge on excess

If you do have some money left at the end of each month, put it into a separate savings pot or account. That way, you’ll build up a cushion you can use in case of emergencies or just to treat yourself at the end of the academic year.

Set weekly allowances

Transfer a set amount of money to a prepaid debit card (like Revolut) or draw it out in cash at the start of each week. On some cards, you can also set up text alerts or a spending limit. That way you’ll know exactly what you have to spend and won’t be tempted to dip into your bank account.

Get student discounts

There are hundreds of discounts available for students, so make sure you take full advantage. Set up an account with UNiDAYS and instantly start saving money on both everyday and luxury purchases. That way, you can always treat yourself within your budget.