Student life is exciting and full of possibilities; you’re meeting new lifelong friends, studying subjects you love and hopefully enjoying a great social life as well. But as idyllic as it may sound, student life is not always easy, especially when it comes to student finances. Managing your money for the perfect balance between work and play can be difficult - but budgeting needn’t be stressful; here are our top tips on how to manage on a students’ budget and get the most out of your time while studying.
1. Do Your Sums – You’ll run out of cash quickly if you stumble on blindly without an overview of your cash flow in mind. Add up all your income for the year – include student loans, any grants, bursaries or scholarships you may be entitled to, as well as money from your parents or college fund and earnings from work. Divide your total by 12 months to know your monthly budget.
2. Budget the Big Stuff – This may sound like common sense, but always budget for the big stuff first, e.g. your student accommodation, utility bills, student fees, loan/credit card repayments and food. Then, see what you have left out of your monthly budget for fun and miscellaneous purchases. Want a new piece of clothing or a meal out? If it’s outside your weekly budget or stretching it thin, wait until the following week. It’s the retro way of spending cash wisely!
3. Insurance – it may seem like a weird thing to spend your cash on when you’re budgeting, but areas with a high number of student houses and other student properties can be at high risk of theft. Hopefully you’ll get through your student years theft-free, but a small amount spent on insurance may prevent tears later on.
4. Borrow Wisely! -Top-up student loans from banks are a must for most students and they have excellent interest rates, but before you sign up, consider how much
you really need to borrow. Most banks will extend your loan when they see you make regular repayments, so borrowing small and extending later is no problem, making it easier to make your cash last.
5. Beware! – Watch out for hidden costs such as cash machines that charge you or shops with a minimum payment on card that encourage extra spending. Also avoid the temptation of credit cards with huge interest fees, or instant loans that cost a fortune to pay back.