Budgeting 2026: New Tax‑Year Strategies for Students

If you’re running between studies, side hustles and part-time jobs, but still not managing to save a penny at the end of the month, then a few budgeting tips and tricks might help. This will be even more important in 2026, when the cost of living is set to increase and tuition fees will rise with inflation.

So whether you’re already feeling the purse strings tighten (i.e. are regularly dipping into your student overdraft), these savings strategies and income management tips will quickly give a boost to your bank account.

Ways to save

If you don’t have a savings plan in place, then any spare cash can quickly get sucked away into socials or other non-essential spending. That’s fun for a while, but if you don’t have any funds to fall back on in an emergency, then it can lead to stress further down the line. Plus, putting even small amounts of money away each month can quickly add up to enough for bigger, better treats.

Open the envelopes

Don’t worry, you don’t have to invest in a load of stationary. The old school method involved labelling 100 envelopes with an amount of money (such as 1p or £1). You’d then put this amount in each envelope on consecutive days. At the end of the 100 days, you’ll have saved a big chunk of cash that you can either put away in an account or spend.

Many banking apps, such as Monzo, allow you to set this type of challenge. So you won’t even notice the money going out until you see your savings pot at the end.

Aim for zero

One for the spreadsheet lovers amongst you. A zero-based principle is that, at the end of each month, you should have exactly nothing left in your bank account. That’s because every penny of your income is accounted for and allocated to a particular purpose. This challenge doubles as money management, because you know exactly where your cash is going.

So if you’re someone who always has a few quid left over each month, put this into a savings pot and make it ‘work’ for you rather than sitting doing nothing.

Use auto-saving apps

Take away all the admin and let an app do all the saving for you. Simply download your chosen option, connect it to your bank account and it’ll start automatically saving your spare cash for you. You can also set savings goals, apply ‘round-ups’ on your purchases, lock in your cash and even earn interest on the money you set aside using apps like Chase, Plum and Chip.

Earn tax-free interest

Basic-rate taxpayers can earn interest up to £1,000 on their savings without paying any tax. So make the most of it by putting your spare cash into a savings account. There are lots of options to choose from depending on your goals.

For example, there are easy-access accounts and cash ISAs if you want to save but might need access to the money in an emergency. If you want to save for a house or another long-term goal, then you can save into fixed-rate accounts to get better rates.

Set yourself a challenge

If you struggle to find the motivation to save, then a challenge could use your competitive side for good. Plus, there’s a challenge to suit everyone’s budget and goals. Set the task of saving 1p or £1 each day. Save £1 each Monday, £2 each Tuesday, £3 each Wednesday, etc. and repeat each week. Put aside the same amount each week or month.

Whatever you choose, be sure to stick to it to get the best rewards.

Boost your budget

To be able to save more, you need to stretch your budget as far as possible. Having close tabs on your money and getting rid of unnecessary expenses is the first step to making this happen.

Cut out council tax

If everyone in your household is a full-time student, then you shouldn’t be paying council tax. Students living alone can also get a single person discount of 25%. Check the website of your local authority to work out if you’re eligible and how to claim these exemptions. Usually it involves filling out an online form and giving proof of your student status.

Lose the TV license

Students can benefit from a loophole in the TV license rules. You won’t have to pay for your own if your parents have a license, you live with them outside of uni terms and only watch BBC iPlayer on a laptop that’s not plugged into an aerial or mains socket. Just make sure everyone in your household meets this criteria before you cancel the direct debit.

Be ruthless with bills

Internet, water, electricity, gas, your mobile phone - they’re all essentials that quickly start to add up each month. By regularly checking and renegotiating your contracts, you can get better, cheaper deals. For example, internet providers offer 12-month deals for new customers, so it’s worth taking the time to ring up and swap every year.

Shop for bargains

Quality clothes, study books, furniture and even gifts can be picked up second-hand in charity shops or apps like Vinted and eBay. Getting into the habit of bargain hunting rather than buying new isn’t just better for your budget, but for the planet. Plus, once you get good at it, you can enjoy the buzz of finding total steals.

Flex student discounts

Both local and big brands offer student discounts for a reason - to help your budget go further. So make use of them while you can. From railcards to food and drink deals and retailer discounts through your UNiDAYS card, making the most of these lower prices will leave you with more to save.