Budgeting

It is important to establish the reason why you are budgeting and set goals. Every student is in a unique situation and the reason they wish to budget will differ.

Financial Wellness Series

Why Budgeting?

Budgeting is about setting financial goals, having more control of your money, and ultimately, achieving financial freedom.

It is important to establish the reason why you are budgeting and set goals. Every student is in a unique situation and the reason they wish to budget will differ. Whether it is debt prevention, debt management, or managing daily expenses. The clearer your goal is, the better budgeting decisions you can make.

The table below is an indication of the cost of living in London. This can vary based on your personal circumstances and preferences, so you can prepare your own budget based on your actual expenses.

*Subject to change

Key elements of budgeting

Tuition Fees: Understand the cost of tuition, fees, and any additional educational expenses. Allocate funds accordingly and consider financial aid options.
Accommodation: Budget for rent, utilities, and other housing-related expenses if living off-campus.
Food and Groceries: Allocate funds for groceries or eating out. Plan meals and snacks to avoid overspending on food.
Transportation: Budget for transportation costs such as public transit fares, gas, parking fees, or bike maintenance. Explore student discounts on transportation options.
Personal Expenses: Set aside funds for personal expenses such as clothing, toiletries, and entertainment. Be mindful of discretionary spending to avoid overspending.
Differentiate between needs & wants - Prioritise needs like housing, food, and transport before non-essential purchases or luxuries.
Savings Goals: Establish savings goals for emergencies, future educational expenses, or personal goals. Start building an emergency fund to cover unexpected expenses.
Part-Time Employment: Consider working part-time to supplement income and cover expenses. Balance work commitments with academic responsibilities.
Financial Aid and Scholarships: Maximise financial aid opportunities through scholarships, grants, and student loans. Apply for scholarships and grants to reduce reliance on student loans.
Budgeting Tools: Use budgeting tools such as apps, spreadsheets, or online resources to track income and expenses, set goals, and monitor spending habits.
Review and Adjust: Regularly review your budget to ensure it remains realistic and effective. Make adjustments as needed based on changes in income, expenses, or financial goals.

By incorporating these key elements into your budgeting strategy, you can effectively manage your finances and achieve financial stability during the academic journey.

Budgeting Methods

Here are some effective methods for budgeting:

1. Use the 50/30/20 Rule

a. Allocate 50% of your income to needs (rent, bills, food)

b. Allocate 30% to wants (entertainment, hobbies)

c. Allocate 20% to savings and debt repayment

2. Zero-Based Budgeting: Allocate every dollar of your income towards expenses, savings, or debt repayment, ensuring that your income minus expenses equals zero. This method encourages students to give each dollar a purpose and prioritise spending accordingly.

3. Pay Yourself First: Set up automatic transfers to your savings account or investment account as soon as you receive your income. This ensures that you prioritise saving before spending and helps you build a savings habit over time.

4. Emergency Fund Budgeting: Prioritise building an emergency fund to cover unexpected expenses, such as medical bills or car repairs. Aim to save enough to cover three to six months' worth of living expenses to provide a financial safety net.

The key is to create a realistic budget, stick to it, and continually review and adjust it as needed throughout your studies. Developing smart money habits early on will serve you well in the long run.

Savings/Earning tips for students

1. Take advantage of student discounts

You can find student discounts on everything from textbooks to transport. Check out sites like Student Beans, UNiAYS, or TOTUM . Youth Hostel Association (YHA): Offers discounted rates on accommodation for students traveling in the UK and abroad.

StudentBeans

UNiDAYS

Totum

2. Make the most of campus resources

Take advantage of resources available on campus, such as academic tutoring, and the library. These services can help you save money and succeed academically. We have specialists in our Student Services department who can help you with anything relating to health and well-being, disability support, financial guidance, visa support, and career services.

3. Transportation

4. Find Part-Time Employment

Look for part-time job opportunities on or near campus to supplement your income. Consider work-study programs, internships, or freelance work to earn extra money while studying. Contact our careers team to find out how they can support you here.

5. Avoid Impulse Purchases

Wait 24-48 hours before making non-essential purchases and unsubscribe from promotional emails that may tempt you.

Budgeting Tools and Apps

1. Blackbullion

The all-in-one student money management space. All the money skills you need to take control of your financial life with confidence.

Blackbullion

2. Monthly Budget Template (Excel)

The old school Excel sheet, if you do not fancy an app. Play around with some numbers and see how much you actually spend and how much you can save. Please find here a monthly budget template.

Download Monthly Budget Template

3. MoneyHelper

The platform has tons of budgeting guidance and support available. There is also a budget planner that you can use on the website. The platform assists in making money choices and provides impartial guidance that is backed by the government.

Money Helper

4. Snoop

a budgeting app, that lets you manage all your finances in one place. With Snoop you can effectively manage tools, set budgets, and receive smart spending ideas.

Snoop

5. Banking apps

If you are not looking to download a new app, most of your regular banking apps provide a budgeting feature. Either check within your banking app or reach out to your bank's customer support.

6. Use separate accounts

Consider setting up separate accounts for different purposes (e.g. one for fixed expenses, one for savings, and one for non-essential spending). This can help automate your budgeting, so there’s less active planning each month

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Financial Wellness - Budgeting

Why Budgeting?

Key elements of budgeting

Budgeting Methods

Savings/Earning tips for students

Budgeting Tools and Apps