Budgeting for studentsBy Sj.Cliff
Congratulations on your place at uni!
Moving away to university is probably going to be the first time you’ve ever lived outside your family home. Yes, it’s going to be amazingly exciting but you have to plan for it, particularly financially.
Getting a student loan is brilliant, but before you make it rain at the union bar have you thought about all the other costs that you’re going to incur – you aren’t at home anymore, those cupboards won’t fill themselves!
To save yourself from a hard time later on (and maybe even get a cheeky holiday in at the end of the year) you need to create a budget.
Your student loan comes roughly every 4 months so as soon as that money is in your account you can work out how much of that is actually yours to spend. Everyone’s budget will be different based on current expenses but this is a great framework to use! (If some of the things on the list don’t apply to you, just ignore them!)
Your student loan minus
Water, electric and gas (if it isn’t covered in your rent)
Mobile phone bill
Travel (including bus/rail pass or insurance and petrol)
Any other monthly payments
Just to make it a little clearer, here’s an example.
Your student loan £4,000 –
Rent (4 months at £250) £1000
Water, electric and gas (4 months at £20) £80
Mobile phone bill (4 months at £35) £140
Travel (4 month passes at £57) £228
Any other monthly payments £0
Food (£20 per week/£80 per month x 4) £320
Savings (4 months at £100) £400
Expenditure Total £2168
Total left £1832
As we said, everyone’s budget is different, but by planning out how much you have left to spend you’ll save yourself a lot of stress when it comes to the end of the quarter!