Student Budgeting Tips: Everything you need to know

• Understand your student loan repayments

If you use a student loan, you’ll have to pay it back once you earn a certain salary. The amount you pay depends on your repayment plan, which you can check by logging into your Student Finance account. The earliest you’ll start repaying your student loan is the April after you leave your course. You won’t have to repay your student loan if you stop working or earn less than the salary specified on your repayment plan.

• Make a list of everything you need

Whether you’re moving away from home or just commuting to your campus, making a list of all the items you need can help get a realistic idea of how much you need to spend. For instance, you might need to invest in a new laptop or tablet. Or buy kitchen utensils, bedding, and stationery.

• Update your CV

Be sure to update your CV with your latest grades and any work you do over the summer holidays. This will make it easier to apply for work closer to your university if you need to. Or, if you apply for internships for the following year.

• Get your personal documents ready

Keep your passport, national insurance number and university confirmation documents to hand in case you need them when you move in or attend your first classes at university.

• Join Student Groups Online

Take some time to research relevant students to join online before you arrive at university. This will help connect you with your prospective classmates, housemates and people who share similar interests. It will also give you an idea of the events, activities and opportunities available which you might need to budget for (more on this later!)

• Make a budget

Budgeting is key to helping you cover your expenses while studying or doing your apprenticeship. We’ve created a simple budgeting template that you can use to manage your finances here.

• Use a budgeting app

Budgeting apps can help you manage your spending. Most apps use artificial intelligence (AI) to monitor your income and expenses to provide tips on how to save. Check out our best budgeting apps round up of the top platforms available now.

• Consider getting a prepaid card

Prepaid cards allow you to top them up with money from your bank account, which you can use for everyday spending. They’re a great way to help you stick to a budget because you can only spend what’s on the card. Platforms, including Kaldi offer a prepaid card and rewards such as cashback when you spend.

• Get insurance

Buying contents insurance could help you save money if your personal belongings are lost, stolen or accidentally damaged. You could also try checking if your belongings are covered under your parents’ or guardian’s home contents insurance policy to save money too.

• Make space for enjoyment

Building healthy money habits includes making room for enjoyment in your budget. For instance, setting money aside for socialising with friends and hobbies. Spending responsibly ensures that you can have fun while covering all of your essential expenses.

• Apply for a student bank account

You’ll need a student bank account to deposit your Student Finance payments, bursaries and scholarships each term. Some accounts come with cash bonuses, extra perks, and freebies to help cover your everyday expenses. Check out our best student bank accounts to compare the latest deals.

• Consider an interest-free overdraft

Most student bank accounts offer an interest-free overdraft if you’re over the age of 18 and have lived in the UK for at least 3 years. These can be a handy way to help you cover expenses while you study. Remember, it’s a loan though and you’ll need a plan to repay it before the interest-free period ends.

• Never go over your agreed overdraft limit

If you successfully apply for an overdraft, you’ll be given an agreed limit known as an “arranged overdraft.” Going over your agreed overdraft limit means you’ll be using an “unarranged overdraft” and you’ll have to pay fees which will make your debt more expensive! Be sure to check your limit and keep an eye on your account so you don’t start racking up extra charges.

• Activate cashback

Some bank accounts offer cashback, which allows you to earn money when you spend at certain retailers. You’ll have to activate the rewards in your mobile banking app to get started and start earning.

• Switch to a graduate account

Once you complete your studies, you’ll be eligible for a graduate bank account. These are designed to give you time to pay off your interest-free overdraft. They usually last around three years and your overdraft limit reduces over time. For example, you might have a £2,000 interest-free overdraft in year £1,000 in year 2 and £500 in year 3.

• Take advantage of student discounts

Registering on free platforms like Unidays and Student Beans will give you access to lots of student discounts at hundreds of retailers and restaurants. You can also sign up to Totum (which used to be called the NUS card) for a yearly fee. Most organisations offer student discounts if you show your student card so it’s worth asking before you pay to see if you can get money off.

• Consolidate your subscriptions

Take some time to audit your subscriptions and where possible join a group plan with other people such as family, friends or your housemates to save money. Be sure to cancel any forgotten or unused subscriptions to boost your income too!

• Be a savvy food shopper

Planning your food shop in advance can help you cut costs and stick to a budget. Always use a shopping list when you hit the supermarket to avoid impulse spending on things you don’t need. If you don’t fancy cooking, trying food apps such as Too Good To Go and Olio can help you buy food from restaurants and cafes at a fraction of the price.

• Apply for a transport discount card

If you use public transport regularly, getting a Railcard or 18+ Oyster Card (if you’re in London) could help you save hundreds a year on commuting.

• Register for birthday freebies

Most retailers offer freebies around your birthday if you sign up for their newsletter. For example, Greggs offers a free sweet treat while The Body Shop offers a £5 voucher to spend online or in-store.

• Get a flexible job

Finding a job that you can balance with your studies can help boost your income. Roles in retail, hospitality and events tend to offer flexible hours which work around your schedule and agencies such as Constellation and At Your Service offer a variety of work opportunities around the UK.

Contacting your university’s careers service can also help you find local job opportunities to earn an income. If you decide to use an online jobsite such as Indeed or LinkedIn, be sure to check that the role and company are legitimate to avoid being targeted by scammers (more on this later!)

• Sell or rent out your unused items

If you have any clothes, tech or valuables that you don’t use, selling them online could earn you a tidy sum. Online marketplaces such as Vinted, eBay and Depop allow you to sell items easily. You may have to pay a fee depending on the value of your items and how frequently you sell. Alternatively you could rent them out using platforms like Fat Lama where you can set a daily rate.

• Apply for a scholarship, bursary or grant

Contact your university to find out if you’re eligible for financial support. Depending on your circumstances, you may be eligible for additional money that you won’t have to pay back.

• Become a user tester

You could earn money by testing out products and services and sharing your opinion on platforms including Test Time and User Testing.

• Check if you’re owed a tax refund

If you’ve worked previously or are currently working, you may have paid too much tax. All you’ll need to do is complete a form on GOV.UK to check whether you’re owed a tax refund from HMRC.

• Pay off expensive debt first

Prioritise paying off expensive debt which is usually sitting on credit cards or personal loans. That’s because the interest you pay on the money you borrow will outweigh any money you can earn through saving or investing.

• Start small

If you’re new to saving, it’s best to start small and build up a consistent habit. Once you’ve paid your essential expenses (such as accommodation, bills and groceries) , set aside an affordable amount into a savings account.

Over time, you’ll build up a good chuck of change which helps you out in emergencies. Activating the spare change feature in your mobile banking app (if it offers one), can help you save while you spend. You can also do the penny savings challenge where you save 1p on day 1, 2p on day 2, 3p on day 3 and so on until you save £3.65 on day 365. By the end you’ll have saved £664.95 (not including any interest you’ll get from your savings account!)

• Get the best rate

If you already have money tucked away and are a confident saver, shop around and make sure you’re getting the best interest on your money. Check out our guide on the best cash savings accounts to see which provider has the top rate.

• Consider using an ISA

ISAs allow you to save up to £20,000 each year without paying tax on the interest or profit you earn. There are several types of account:
💷 Cash ISAs – are great for general saving.
💷 Stocks and Shares ISAs – allow you to invest in the stock market.
💷 Lifetime ISAs – help you save for your first property and retirement (restrictions apply and you can find out more about them in our Lifetime ISA guide.)

• Try an investment app

Investment apps offer a simple way to help you to grow your money by investing in the stock market. If you’re in a secure financial position and are able to invest money for at least 5 years, it’s worth considering generating a higher return. Check out our round up of the best investment apps to help you find a suitable platform.

Scams are becoming increasingly sophisticated so it’s vital to stay alert to avoid being caught out. Students and young people aged 11 to 29 lost £143.7 million to criminals in 2023 alone.

Some of the most common scams to beware of are:

• Investment scams

Criminals advertise investment opportunities that promise high returns of cash or cryptocurrency (like Bitcoin). These scams are usually disguised as get-rich-quick schemes or “once in a lifetime opportunities” which in truth, are too good to be true. Once the criminals get a hold of your cash, they disappear.

Scammers will sometimes include fake endorsements from well-known figures or celebrities to make their adverts seem legitimate. If you see one of these, report them immediately and don’t share any personal or financial information! For real tips on how to make a return, check out our section on investing tips.

• Fake job adverts

Sadly, criminals are setting up fake job adverts to steal your personal information…and sometimes money! These opportunities might be hosted on real job sites like Indeed or LinkedIn. Some jobs advertise an extremely high salary for very little work to get a hold of your name and address. While others might offer a paid-for consultation call or charge a fee to find a job, which the criminals won’t deliver on.

These types of scams aren’t always easy to spot but these can help you avoid being caught out:

🔍 Research the company: a quick search online can help you determine if a company is legitimate. Companies House will let you know when the company was started, if it had any previous names and details about the owners.

🔍 Avoid impersonators: some fraudsters might pose as real businesses that already exist. So be sure to check that you’re applying to the right place. Imposter companies might have slight variations in the name or link to a completely different website. The best way to avoid this is by applying directly onto a company’s careers page.

🔍 Grammar check: if a job advert is poorly written or includes a lot of spelling mistakes, it might be fraudulent. So best to avoid it!

🔍 Avoid fees: ignore any job adverts or employment “consultations” that require a fee.

🔍 Report and delete: some scammers are creating group chats using iMessage, WhatsApp or Telegram to share money-making opportunities. Report and delete these chats as soon as possible to avoid being caught out.

🔍 Reality check: if a job sounds too good to be true…it most likely is! There’s no such thing as a free lunch and if it feels like you’re getting a steal by earning money for doing nothing, there’s a strong chance there’s someone behind the scenes stealing something from you.

• Rental fraud

Rental fraud involves scammers advertising fake student accommodation to steal money. Students are often asked to pay fees before seeing a property to avoid losing it. Only for the fraudsters to run off with their money and be left with nowhere to live.

If you’re looking for student accommodation, it’s best to use agencies and landlords recommended by your university or higher education provider.

Try to use landlords or agents that are registered with a trade body such as the UK Association of Letting Agents (UKALA) or the Association of Residential Letting Agents (ARLA).

You can also check if a landlord is legitimate by checking the Land Registry or services like Rent Profile for a fee of around £3.

Always inspect a property in person and take photos or videos to document what it looks like.

• Online shopping and ticket scams

Fraudsters often set up fake websites or imitate legitimate sellers to trick people into sharing their personal details or buying items that don’t exist. Always check whether a seller is legitimate by researching the company’s details. Running a search on Companies House can help indicate whether a business has been in operation for a while and who runs it.

Always buy tickets from a reputable website such as Ticketmaster or AXS. (I know the fees can be steep, but at least you can guarantee you’re purchasing tickets to your event or show.)

• Money mules

Students and young people are increasingly becoming targets for money laundering schemes by being used as “money mules.”

The scam works by someone offering to put money into your account and asking you to transfer it to someone else. As a reward, you’ll get to keep a portion of what they transferred you.

Sounds easy enough? Well, this could land you in lots of trouble with the law. It’s usually used by criminals to hide money and move it around without being detected.

If you’re caught being part of a money mule network, you could get:
– up to 14 years in prison

– your bank accounts closed

– into difficulty when applying for credit e.g. phone contracts, credit

– cards or mortgages

– rejected from when applying for work

– removed from university or a professional bodies