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Student money guide: budgeting demystified
Transform your university experience through smart financial decisions with these 11 clever techniques for maximising your student budget.
Maximising your student budget
1. Master the art of budgeting
Think about how much of your money you need to allocate to essentials (rent, bills, course materials); how much to wants (socialising, entertainment) and whether that leaves you with a portion to save or cover overdraft or credit card payments. Review your budget monthly to refine it as you learn your actual spending patterns.
Learn more about this simple budgeting rule.
2. Monetise your student skills
Turn your academic strengths into additional income by offering tutoring to first year students or local secondary school or sixth form pupils preparing for exams. Check if your university can help you find research or focus groups - there may be businesses looking for student support.
Have you got course skills you could offer for freelancing? Language students could offer translation services, while computer science students might be able to build websites for paying customers. Speak to friends and tutors for advice, and don't be afraid to ask who's offering opportunities, where to look, or connect with others already doing similar work. Research and conversation can often open unexpected doors.
3. Meal plan like a pro
Like many things in life, proper planning goes a long way, and meals are no different. Learn some adaptable, budget-friendly recipes that can use ingredients based on what s on offer. Batch cooking and freezing can save both money and effort, while a shopping rotation with housemates will help keep you all fed and could reduce waste. And don't forget to label your food - if it smells and tastes as good as it should, your housemates might "accidentally" claim it as their own. When it comes to food shopping on a budget, make a list of essentials and stick to it - it's easy to get distracted by tempting offers, especially if you shop while you're hungry.
4. Budget friendly nights in
Replacing nights out with creative alternatives like themed parties, game nights, and cocktail/mocktail nights-in is a quick win when your budget is tight. If you're going out, take advantage of student preview nights at theatres and cinemas where tickets can be half-price or less. Check your university's student union for heavily subsidised events and trips.
Also, many music venues need volunteer staff, so you could catch a show whilst you work.
Managing social finances
5. Navigate peer pressure and social spending
Being honest with friends about your budget limitations will help you to support each other. Create a dedicated 'social budget' each month for nights out and activities and suggest alternatives like movie nights, cooking together or free university events. Your friends may be in a similar financial situation so will be feeling the same way.
Learn more about reducing your spending with this article.
6. Balance financial independence
Student loans don't always cover all expenses, so sometimes you might need to rely on extra support from family. If you receive help from parents or family, treat it as a learning opportunity to create a spending plan, track your expenses, and discuss your financial progress with them.
This accountability can help build good money habits.
7. Protect what you have
Stay mindful of your finances while enjoying your university experience to the fullest. Your phone contains access to your banking apps and payment methods, so make sure you keep it safe. Set up biometrics like face or fingerprint log in, strong passcodes and enable either Find My Device for Android or Find My app for iOS devices.
If you've clicked on a suspicious link, remember that legitimate institutions never ask for your full password or PIN. If you receive unusual requests, contact your bank directly, but don't use the contact details in the actual message you received as they won't be the right contact details for your actual bank.
If you think you've fallen victim to a scam, please contact your bank immediately. Learn more about financial security with this article.
Building your financial future
8. Use credit cards wisely
A student credit card* can be a useful budgeting tool and can help build your credit score, but it s important to pay in full each month. You can set up automatic payments to help you with this. Avoid using a credit card for cash withdrawals as there can be high interest charges. Check out this article to understand the difference between credit and debit cards.
You can check your credit score regularly using free services, and learn more about building good credit with TSB’s credit score tips.
9. Start saving and investing now
Even small amounts matter when you re starting early. We know you may be a little strapped for extra cash while studying but every little bit saved now can go a long way to building strong habits for the future. Try budgeting for each week or month and if you have anything left over pop the extra cash into a savings pot.
Take a look at this article for top tips on savings and if you have a TSB account why not use "save the pennies"? Well round up every debit card payment you make to the nearest £1 and put the pennies into your savings.
10. Think about your future self
While retirement feels a long way off, understanding pensions now gives you a great advantage. Many student jobs offer workplace pensions. Try to avoid opting out just to have extra cash now. The tax benefits and employer contributions make this an opportunity you shouldn't pass up.
11. Build momentum with small actions
You don't need loads of money to get ahead, you just need to start. Small habits, like rounding up purchases in a savings pot, build financial discipline, and breaking down big goals into smaller monthly targets, makes them less intimidating. Try using digital tools that visualise your progress to stay motivated when financial goals seem far away.
Looking for more money tips?
Found this budgeting article helpful? Check out the other articles in our student money guide series here.
Our dedicated team is happy to support you on each step of your financial journey. If you have any questions, you can reach out to us, Monday Friday 8am 5.30pm.
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*TSB Student bank account holder for at least 3 months and have a regular income.
The issue of a credit card is subject to status and depends on our assessment of your circumstances. You must be 18 or over and a UK resident to apply.
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