The Ultimate Guide on How to Budget Money as a Student

A collection of pound coins

Last updated: October 2026

Not everyone knows how to budget as a student. Starting uni can feel like there’s so much to think about: making new friends, attending lectures, and the all-important Freshers’ Week. But following some student budget tips should be one of your top priorities.

Now, our student budget guide is more important than ever. Making a budget and sticking to it can be crucial. Luckily, we’ve listed below some top tips on how to budget as a student and save money where you can! We’ve even included insights from our very own Content Ambassadors, current students and graduates who were happy to advise on budgeting in their specific cities.

What is budgeting for students?

Forget the boring jargon – a budget is just a simple game plan for your cash. It estimates how much you’ll make and spend in each period (usually over a week or a month).

Why should you budget money as a student?

The main benefit of budgeting is that it helps to keep your finances under control, ensuring you don’t run out of money or end up deep in your overdraft. Stick to your budget, and you’ll always have enough for the essentials, with some left over for the fun stuff.

A budget also allows you to make goals and save for things which are important to you, whether that’s the latest iPhone or a trip away with your pals. With a budget, you can make your goals happen.

Dennis Harhalakis, the founder of Cambridge Money Coaching, adds: “Getting on top of your finances requires an investment of time, and this time needs to be scheduled. Willpower is not enough. Make some time and stick to it.”

How to budget money as a student in simple steps

Student budgeting might sound challenging, but it can be broken down into a few simple steps.

  1. Work out the amount of money coming in per term.

    This includes your maintenance loan, any scholarships or bursaries, regular money from parents or family, and any income from a part-time job. If you’re not sure how much you will be getting from a family member or how many hours you will be working, it’s best to underestimate.

  2. Work out the amount of money going out per term.

    This includes essential and regular payments such as rent, bills, subscriptions, gym membership, weekly food shop, travel, and any debt payments or regular savings. If you’re unsure how much you will spend on your weekly food shop, it’s best to overestimate – you can always adjust it later.

  3. Make sure you have more going in than going out.

    This might sound silly, but you must ensure you have enough money to cover the essentials at a minimum. If you don’t, you might need to get a part-time job lined up as soon as possible or see if you’re eligible for any scholarships, grants, or bursaries.

  4. Subtract your outgoings (money out) from your income (money in) and then divide by the weeks in the term.

    This is your weekly allowance for the fun stuff. It includes anything that wasn’t part of your essential expenses, such as new clothes, going out, and takeaways.

  5. Create a weekly budget.

    As a student, it’s best to create a weekly budget to ensure you’re not overspending. This can be tricky, as your biggest source of income will most likely be your student loan, which gets paid at the start of every term (your tuition should go straight to your university).

    When you get your first maintenance loan payment from Student Finance, it might well be the largest amount of money you’ve ever had sitting in your bank account, but don’t blow it all in one go. Check out how to make the most of your student loan so it lasts the entire term.

    Top tip: Ask if you can pay rent every term rather than every month. Getting that big chunk of your expenses taken care of straight away means you won’t accidentally spend your rent money.

  6. Set yourself goals

    An essential step in budgeting as a student is setting goals. Whether that’s saving for a holiday, having more money for going out, or just trying to spend less. Goals will help you to rein in your spending by giving you something to work towards.

  7. Analyse your spending habits.

    Taking a proper look at your spending habits gives you the full picture and allows you to see where your money is going and where you might be overspending. For example, if you notice a big chunk of your money is going to restaurants, then maybe try making a weekly food plan of cheap meals!

Quickfire student budgeting tips

Even if you follow the above steps and create your weekly budget, there are still many ways to improve your budgeting and save money as a student.

  • Download a budgeting app

There are loads of budgeting apps out there which are designed to help you keep track of your spending, such as Cleo and Money Lover. This is ideal if you do most of your spending with your card or online rather than paying with cash.

Some apps can link to your bank account and automatically track how much you spend on each category. Just make sure the app is reputable, well-known and has plenty of positive reviews, as it’ll have access to your financial information.

Additionally, Content Ambassador and Brunel University of London student Sophie advises, “If you haven’t done so already, sign up to your local supermarket’s loyalty scheme to make your shop cheaper.” This could be in the form of supermarket apps, such as Asda Rewards.

  • Open a student bank account

If you’ve not got a student bank account, then get one – it’s the best option for those in higher education. In addition to paying money in and out, the best savings accounts come with interest-free overdrafts and useful freebies.

An interest-free overdraft means you can be overdrawn up to the limit (usually between £1000 and £2000), and you won’t be charged. Just remember to use this as a safety net or for emergencies – an overdraft isn’t free money!

  • Use a two-bank account approach

Try this useful strategy to split your essential and non-essential spending. Use your main bank account for essential expenses only, such as your weekly food shop. Don’t take this card on nights out!

Each week or month, you can then transfer the amount you have to spend on non-essential items for that time period to your second bank account. You can set up a direct debit so that this will happen automatically. You can even divide this up into pots for different categories (like takeaways or clothes) to monitor your spending with banks like Monzo.

  • Make use of round-up and cash back

Many bank accounts also offer the option to round up your purchases. This can be an effortless way to save money. When you pay for something, your bank account will round that purchase up to the nearest pound and put the leftover pennies in a savings account.

These round-up saving accounts usually have much higher interest rates than standard savings accounts. For example, Chase offers 5% interest on their round-up account.

Another great option to maximise your savings is to use cashback offers, which offer a percentage of cashback on all debit card spending – essentially free money!

  • Use student deals and discounts

Loads of places have student discounts or special offers. If you’re unsure if a place offers a student discount, just ask in-store or search online.

Student on a laptop on his bed

There are also discount websites, such as Unidays and Student Beans, which you can sign up to for more student discounts and offers. For even more student discounts, you can pay for the TOTUM card, which has unique discounts on hundreds of brands.

Although not strictly for students, the 16-25 railcard offers ⅓ off all rail travel. It’s £30 for a year or comes free if you have a Santander student bank account. If you travel home by train, the card usually pays for itself after a few trips!

Content Ambassador and University of Sheffield graduate Sophie also advises, “Be sure to take advantage of free food options as well – the Sheffield Students’ Union’s Community Hub is a great place for some free local produce.” At the same time, Brunel student Sophie says, “UNiDAYS is a must. Make sure to download the app and verify your student status with your student email, and you’ll be greeted with hundreds of discounts from major clothing retailers, restaurants and so much more. Spotify also offers a premium student plan for the small price of £5.99 per month. This is perfect for any music lover or podcast fanatic like me, who wants to listen to their favourite artists and creators at an affordable price.”

A piggy bank and coins

  • Look into maintenance loans and grants

Depending on which part of the UK you’re from and studying in, you might be entitled to a maintenance loan to cover your living costs. Other means-tested grants and finance options might also be available. Learn more at:

Student Finance England

Student Awards Agency Scotland

Student Finance Wales

Student Finance Northern Ireland

  • Use cash

An alternative to tracking payments with an app is to get into the habit of using good old-fashioned cash. That way, you can take out a set amount for the week and ensure you don’t spend more than that.

  • Pre-drink

If you love a night out, pre-drinking* is one of the cheapest ways to have a good time whilst saving your cash. Avoid spending too much on a vodka Coke when you’re out by getting everyone together, drinking what you’ve got left in the cupboards, and playing games before hitting the club.

University of Bristol student Evie agrees. She says, “In terms of drinking, I recommend making your own cocktails with your friends – if you split the ingredients, you get a lot of drinks for a small price! My other hack, being too well known amongst uni students, is of course ‘squadka’: squash and vodka. Squash truly is the cheap and endless mixer. Another method for saving money is to pre at home instead of at the bars. Pres with friends at home and a pack of cards never goes wrong. However, there’s also a lot of student deals at pubs all throughout the city if you fancy a bar night. You’ll also find Bristol clubs offer a lot of club entry and club drink deals for students.”

*Split The Bills promotes responsible drinking. Alcohol products are for ages 18+ only.

  • Don’t buy new textbooks

We can all agree that textbooks are (very) overpriced, so think twice before buying. Make sure you have a look online to find second-hand ones to bag a deal. Share textbooks with other students to divide the costs between you, or even source a few from your university library. Make sure you get in quick, though, as many students rush to get their hands on these before seminars start. When you’re done with them, ensure you sell them to earn some extra cash.

  • Allow yourself occasional treats

Saving and budgeting as a student is important, but if it forces you to abandon your social life, hobbies or love for new things, you’ll most likely feel deprived. This can result in reckless, unplanned and impulsive spending.

Saving less so that you can afford the occasional treat could actually lead to more money being saved in the long run.

  • Eliminate bad spending habits

Treating yourself to the occasional swanky dinner or new outfit may seem harmless, but try not to get carried away and always stick to the allocated amount in your budget.

Discipline is key here. When thinking about student meals, CA Evie says, “I’d recommend finding your nearest and cheapest supermarket (my go-to is usually Aldi or Lidl). Before your shop, I also advise creating a list of the meals for the coming week and making sure you’re buying what you actually need; this has saved me a lot of stress and money. The cheaper meals are generally more veg-heavy, so I recommend leaning into trying some veggie dishes whilst prioritising food you actually like so nothing goes to waste.” Simple techniques like this can help you avoid going to the nearest takeaway counter!

Plus, online platforms such as Instagram and YouTube are brimming with sponsored and aspirational content, which constantly encourages people to spend. Despite what you see on Instagram, most people can’t afford to live the life of luxury. But no matter what other people are buying, it’s crucial that you don’t get swayed to spend irresponsibly.

By creating a money management plan, you can find financial stability and prevent making messy mistakes that could land you in tremendous debt.

  • Ask for help

Money is a source of stress and anxiety for many students, so most universities will have a student money adviser or support services available to help you with budgeting techniques and ensure you can access any financial options that you might be entitled to.

  • Keep it real

It might be tempting to ‘live for the moment’ and bury your head in the sand, but remembering that you can only spend what you have is as essential for your mental health as it is for your bank balance. Using a budget calculator can be hugely helpful.

Ways to get extra money to fund your student budget

  • Declutter and sell unwanted items

Get rid of that dreaded pile of clothes in the corner of your room, gathering dust. Rather than hoarding it, set up a Depop, Vinted or eBay account and get those items sold. You’ll be shocked at how much money you can make by selling things you no longer want, so why not give them a new home?

If you have received gifts over Christmas that you’re certain won’t be used, it might be worth considering giving them to someone else who will enjoy them instead of stashing them away in a drawer.

  • Secure a part-time job

If your course schedule allows for it, take the plunge and step into the working world (scary, we know!). By getting a part-time job, you could start earning a regular, reliable income to help pay for that university lifestyle (aka saying yes to everyone who asks if you’re going for a pint).

From shaking cocktails to selling clothes, there are plenty of different opportunities for you students to earn some extra money. If this isn’t feasible to work while studying, you could consider getting a job over the summer, ensuring it doesn’t disrupt your term-time lectures.

Young professionals with full-time jobs may be able to do some overtime to make some extra money. However, if there isn’t a possibility of obtaining a pay increase, it might be worth seeking other job opportunities. The New Year can be a great time to find a new role, as businesses often gain updated budgets and may have postponed hiring new staff over the festive period.

One final student budgeting tip: don’t pay for your housemate’s bills

When living with a partner or housemates, it can be easy to offload the responsibility of sorting utility bills to someone else, especially if you’re paying them for the first time. However, this can make it difficult to keep on top of your gas, electric, and water costs.

Additionally, if you’re not using a bill-splitting service, you may find yourself chasing housemates for money – and may even end up paying their share to avoid damaging your own credit score.

 

That’s where we come in. Here at Split the Bills, we do the hard work of setting up accounts and direct debits for your electricity, gas, and water. We ensure the bill is split equally across your house and that everyone pays their share. All you have to do is pay one neat bill every month, meaning zero hassle, no awkwardness, and total peace of mind.

If you want to know how to easily budget as a student, you can find out more about what we do or get started by grabbing a quote.

Split The Bills is not a financial advisor. This should not be considered as professional financial advice. Do your own research & consult a professional financial advisor before making any financial decisions!

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