How to manage finances at university

Managing your finances effectively is one of the most important skills to develop at university. With careful planning, you can make your money stretch further, avoid debt outside of student loans, and still enjoy your university experience. Here’s how to create and stick to a budget. 

1. Create a budget

The first step in managing your finances is creating a budget. Start by listing all your sources of income, such as student loans, part-time work, or financial support from family. Next, outline your essential expenses, including rent, utilities, groceries, and travel. Finally, allocate a portion of your budget to things like socialising, clothing, and entertainment.

2. Track your spending

Once you have a budget, it’s important to track your spending to ensure you’re sticking to it. There are plenty of apps available that make this easy, or you can use a simple spreadsheet. By regularly reviewing your spending, you can identify areas where you might be overspending and adjust accordingly.

3. Prioritise needs over wants

At university, it’s easy to get caught up in the social scene and spend money on things you don’t really need. Before making a purchase, ask yourself if it’s something you really need or if it’s just a want. Prioritising your needs, like food and accommodation, over wants can help you stay within your budget.

4. Use student discounts

Take advantage of student discounts wherever possible. Many retailers, restaurants, and service providers offer discounts to students, which can help you save money on everyday purchases. Always carry your student ID and check for discounts before making a purchase.

5. Cook at home

Eating out regularly can quickly drain your budget. Cooking at home is a more cost-effective option and can be just as enjoyable. Plan your meals, shop smart by buying in bulk, and avoid food waste by using leftovers creatively. This approach will save you money and help you eat healthier.

6. Avoid credit card debt

While it might be tempting to use a credit card to cover expenses, it’s important to be cautious. Credit card debt can quickly spiral out of control if not managed properly. If you do use a credit card, make sure to pay off the balance each month to avoid interest charges.

7. Save for emergencies

Having a small emergency fund can be a lifesaver when unexpected expenses arise. Aim to save a little bit of money each month, even if it’s just a small amount. This fund can help cover things like medical expenses, unexpected travel, or replacing a broken laptop without throwing your budget off track.

Got a great budgeting tip to share with your fellow students? Comment below or email katie@madlug.com to be featured on our socials.