You’ve got a lot to think about when you go to university, and budgeting for student life can be a worry for many. Any grants or loans you receive might not be enough to cover everything.
Updated: 03 Jan 2025
There’s lots of advice and helpful tools out there to help you make the most of your budget. From saving money for rent and cutting costs on food shops, to looking after your car and staying out of unnecessary debt, keep reading for tips from money experts and the Whatuni team…
Alison Pask, Managing Director of Financial Capability and Community Outreach at the London Institute of Banking & Finance says…
Keep track of what you spend
There’s nothing worse than running out of money and not being able to afford the basics. Having a budget helps you keep track of what you spend, versus what money you have coming in. It also helps you to avoid running out of money and ensures you’re able to make smart choices about what you want to spend.
Just making a list of incomings and outgoings can help you keep track. Make sure you don’t forget any regular bills that come out of your bank account like direct debits for your phone. It may help to split your income up into a monthly allowance, so if you overspend you can still make savings the following month.
Another top tip is to use a spending tracker app. It’s so easy to lose track of your spending but with an app you can see all of your outgoings and identify where you can cut back. Just enter your current balance and then deduct purchases as you make them. There are lots of free tools to help you budget, such as MoneyLover.
Be open
If you’re having money troubles make sure to get advice from people you trust. This might be your parents or impartial sites such as the Money and Pensions Service. The worst thing you can do if you have financial worries is bury your head in the sand, do nothing, or try and solve it by going to a ‘pay-day’ loan company. Talk to your parents and friends as they’ll likely have been through similar situations. The later you leave things, the worse it will get.
Do your homework
If you do need to get a short-term loan, go to a big-name brand and check how much interest you’ll pay. A high percentage figure (called APR in the jargon) means you’ll pay more back. If you’re using a credit card to get you through short term cash flow issues, make sure you pay back what you owe quickly and don’t just make the minimum payment. For help on managing debt, visit impartial sites such as National Debtline.
MusicMagpie.co.uk says…
A recent study revealed that Brits could be sitting on £290 worth of unwanted tech items. By selling yours, you could cover your next few food shops and even have some money left over for a few nights out! If you have any unused video games or old tech such as phones or consoles, then trade them in to musicMagpie to get some extra cash.
It’s really easy to do. Just select the make, model and condition of your phone or tech item on the website, and musicMagpie will tell you how much it’s worth. To sell CDs, DVDs, games and books you just need to enter the barcode into the valuation engine. There’s also a free app which makes it even easier, by letting you scan barcodes with your camera.
Posting your items is free and as soon as MusicMagpie has received and checked them you can expect a payment into your bank or PayPal account.
Freddy Macnamara, founder and CEO of Cuvva, says…
Having a car at university can be an expensive luxury. If you’re going to do it, it’s worth thinking about how you can keep the costs down. The biggest expense is likely to be insurance. In the last quarter of 2023, annual premiums have risen by a staggering 19% (Auto Trader) and the average annual premium quote for 21 to 24 year olds is now £1,294 (MoneySuperMarket).
One way around this is to think about who you’re living with and whether you can effectively share one car between a household. Using a pay-as-you-go policy, you could borrow your housemate’s car for quick trips and you’ll only have to pay by the hour.
If this arrangement suits everyone it could collectively save a group a lot of money. Getting short term insurance can also be a very quick, stress-free process. With Cuvva it can be completed on the app in just a few minutes.
You can also save money by driving economically to minimise your petrol consumption. Avoid going out in rush hour – traffic jams eat up a lot of fuel. Try to accelerate smoothly, travel at a constant speed and keep your tyre pressure high.
Also think about parking. Don’t arrive at your accommodation without a plan of action of where your car is going to be when you’re not using it. If there’s no allocated parking outside your building check out local car parks and how long you can use them for free.
Finally, make sure you include the costs of petrol, parking and insurance into your budget.
Anita Naik, Lifestyle Editor of VoucherCodes says…
Discount dining
If you’re getting cabin fever while stuck on campus, why not venture out for dinner? For cheaper meals out, check the VoucherCodes website to browse offers at a range of restaurants near you. Lots of places now offer 2-4-1 deals and cheap set menus so you can enjoy a meal for less. It’s also worth checking out your local pub. Many will offer special deals for students, especially during the day.
Cheap as chips
Even on a tight student budget, everyone deserves a takeaway every now and again. There are lots of ways to make your money go further, so you can still enjoy a takeaway treat without destroying your budget. If you’re ordering curry, why not cook your own rice to save paying for sides? Alternatively, save on delivery charges by collecting in store and make the most of family deals by splitting the cost with your friends.
Bulk buy
You can save money for the week ahead by buying food in bulk and cooking it in large batches. Remember to freeze food in meal-sized portions to avoid it going to waste. Simple dishes like chilli are super easy to make and can be served with everything from jacket potatoes to rice, giving you plenty of variety in your diet.
Cheap tunes
Want to see your favourite DJ or band but can’t quite justify the hefty ticket price? Check out Facebook event pages for people looking to sell their tickets at the last minute. There may be occasions when people are happy to accept less than face value for the ticket, so it’s always worth having a look.
If you have spare time in the summer, sign up to festival volunteering sites. Often you can get tickets at some of the biggest gigs and events of the year in exchange for a few hours of work.
Get your NUS card out
A close companion throughout your student years should be your NUS card, which will get you discounts from some of the biggest names on the high street. As well as shopping, you can also use it to get discounts on everything from travel to cinema and theatre tickets, so make sure you’re making the most of it.
Save and stroll
Travel can be expensive and we all want to stay healthy, so why not save by swapping the bus for walking? Not only will it help you hit your 10,000 steps a day, it’s also a great way to take some much-needed space away from studying. Try using the extra time to listen to inspirational podcasts and reflect on your day.
Earn while you learn
To make a bit of extra cash it’s worth signing up to market research and mystery shopper sites. There are companies that look for students to work with them for a couple of hours a week. You might be asked to do things like answering online surveys, sending in a video of you talking about a certain brand or even doing a bit of shopping. A good place to start searching is the Market Research section on the Student Jobs website.
Another idea is to sign up to task websites. Locals around you may need a hand mowing their lawn or walking their dog for an hour, perfect if you want to finance your next night out.
Socialising on a shoestring
Going out for dinner during the week rather than the weekend can also help you save some money. A number of restaurants offer money off deals on weeknights to get people through their doors. Check VoucherCodes for restaurants near you that are running offers. You’ll be surprised at the variety of different cuisines and discounts available.
ClearScore says…
Understand your financial footprint
As you get older and start to sort your own money, it’s important that you’re aware of what your financial behaviour is telling other people about you. Your credit history is a record of things like when you’ve applied for loans, if you’ve paid them back, and how much credit you have access to.
After the age of 18 you will have a credit score and report. Any financial decisions you make as an adult makes an impact on this score, and it’s important to keep it healthy. A good credit score means you’ll have access to financial products with the best deals, such as mobile phone contracts and credit cards.
Maintaining a healthy credit score means being responsible with things like paying bills on time, opening and managing a current account and staying within a planned overdraft.
Get the right bank account
Spend some time researching all the student bank accounts available well before you leave for university. Don't just choose a bank because they happen to have a branch on your campus. While it is useful, most banks will have branches in your local town centre and online banking as standard.
There are also digital bank accounts available, which don’t have a physical branch as they’re online only. Most of your banking will be done through an app. A positive of this type of banking is the apps usually have good features to help you budget.
The dangers of defaulting on a loan or credit card
Some students decide to take out a short or long-term loan or credit card to help with living costs during their course. If you do take out a loan or credit card, make sure you shop around for the best deal.
You also don’t want to damage your credit score, so it’s crucial you don’t miss a payment. Setting up a direct debit is the best way to ensure you always pay what you owe on time.
Avoid the utility bill trap
Having a shared bank account where money for bills is paid into will mean you are ‘co-scored’ by agencies. If your housemates are unreliable and regularly behind with repayments, consider keeping your finances completely separate.
As Justin Basini, chief executive of ClearScore, highlights: "Actions that may seem harmless at the time, such as missing or ignoring a minor payment on a shared account, can come back to haunt graduates years after leaving university.
"These mistakes could easily affect their credit scores which in turn can impact everything from taking out a mobile phone contract, to renting or buying a property later down the line.
"A better credit score ultimately leads to better deals on credit products and getting a grip on this sooner rather than later will help students and graduates get set up for a more stable financial future."
NEXT: Check out our guide to student finance.