Looking at these areas will get you off to a good start and will help you to be in control of your money throughout your studies.
Planning your year in advance helps you focus on the important things, such as studying and socialising! While planning a budget isn't the most exciting thing you'll ever do, there are lots of benefits to planning your finances and sticking to a budget:
it helps reducethe stress which can be associated with money
it allows you to make the most of your time at university and enjoy it
it allows you to be independent and financially capable
it puts you in control of your money
it allows you to identify danger points throughout the year where your money may be stretched
you can make informed choices about your spending
it helps you to identify areas where you overspend
it can help to reduce the long term consequences of unwise spending decisions
The key to successful budgeting is honesty. Be realistic about what you spend. Be sure to include even the small things, like the odd glossy magazine or morning coffee. It all adds up.
If you aren't sure where to start,monitor your spending habits for a week or two using our daily tracker form (PDF: 82KB). There are lots of apps available too. Try the Budget Builder from the Money Charity, which allows you to keep track of your spending using your mobile phone. There really is no excuse for not being able to keep track of your finances!
It's a good idea to set up online banking. This allows you to check your balance regularly and keep track of the activity in your account(s).
Plan your finances for the whole of your academic year so you know what to expect. Use our budget planner (PDF: 259KB) to help you identify what money you've got coming in and what you have to spend over the year and during each term. Our cashflow forecaster (Excel: 60KB) will also help you to break down your finances month by month.
Once you have worked out a realistic budget, there is a certain amount of self-discipline involved to make it work for you. Following some easy steps will help you to keep on track:
withdraw your weekly allowance in cash at the start of the week, so you know how much you have to spend
avoid using debit or credit cards for purchases, as this makes it difficult to keep track of your spending
use online banking and check your accounts regularly
sign up for text service to track your balance if your bank offers this
don't use cash machines which charge for withdrawing your money
always open paper bank statements and correspondence and check through them thoroughly; look out for any errors, evidence of fraud, and unpaid items
regularly review your budget - is it still realistic?
don't give in to temptation or peer pressure and spend more of your weekly allowance with the intention of getting back on track the following week
start saving any spare cash left over out of your weekly allowance - it will quickly add up and you can use your savings to buy the odd treat
Check our ideas on cutting your costs. If you want to work out your own personal budget and aren't sure where to start, book an appointment with one of our Student Finance Advisers.
