How to Budget at University

 

Entering university is an exciting and transformative phase in life, filled with new experiences and opportunities. However, it also marks the beginning of newfound independence, including financial responsibility. Learning how to budget during your university years is a crucial skill that will not only help you navigate your academic journey but also set the foundation for a financially secure future.

In this guide, we will explore the ins and outs of University Budgeting, providing practical tips and strategies to manage your finances effectively. Whether you are a freshman just starting your journey or a seasoned student looking to enhance your financial literacy, this comprehensive guide will be your go-to resource for mastering the art of budgeting at university. So, let's dive in and discover how you can make the most of your university experience while keeping your finances in check.

Why is Budgeting Important at University?

Many of you might be thinking about why you need to do budget planning, why it is important, and many other things. Well, Student Budgeting is not a very interesting topic, and you may find it pretty boring, but it is a very essential subject you should know about. No matter how much money you have or how rich you are. Controlling or tracking your money spending can provide you with many benefits. In the below-given context, we will explore some key importance of budgeting. 

 

• To avoid debt: University is expensive, and many students take out student loans to help cover the costs. However, too much debt can be a burden later in life, so it's important to budget your money carefully to avoid overspending and accumulating unnecessary debt.
• To make the most of your money: There are many ways to save money as a student, such as cooking at home, renting textbooks, and shopping around for the best deals. By budgeting your money, you can make sure that you are getting the most out of your income and spending it on the most important things to you.
• To reduce stress: When you have a budget in place, you're less likely to worry about money. This can help you reduce stress and focus on your studies and other activities.
• To develop good financial habits: Budgeting is a valuable life skill that can help you manage your money effectively throughout your adulthood. By learning how to budget in college, you will be setting yourself up for financial success in the future.

Ways to Do Student Budgeting

Budgeting your finances and spending accordingly is not a rocket science theory. You do not have to invest your whole life in it. Simply put 0.1% of your time, and you will be able to save more money. Let’s check out the ways through which you can easily plan your weekly, monthly, or yearly budget based on your needs and plans. 

Calculate Your Net Income

The first and foremost step that you are required to take to proceed with budgeting is to calculate your net income and break it down. During your college time, you would be getting money to survive during your college days through 4 modes. 

 

• Either your family is giving you money as pocket money to spend during your college time. 
• You are getting money by taking tuition classes or working somewhere as a part-timer. 
• Have your own personal savings that you are using or going to use during your higher education (college). 
• Or you are saving your family’s hard-earned money by getting a scholarship or taking a Student finance loan.  

Now that you know your income source, you are required to calculate your estimated income. Calculate all the possible sources and money that you would get. Once you have the calculation of the total receiving money, you will have to proceed with step.

Track Your Spending and Expenses

After knowing the income, you will have to track and calculate your expenses either weekly or monthly. Take a pen and a notebook and sit for at least 30 minutes or more. Now, write down all your expenses. Such as; 

• Rent
• Groceries,
• Student insurance, Car insurance (if any), Gas and electricity, Water, Broadband, TV Licence, Mobile phone bills,
• Transportation fare,
• University study material,
• Food,
• Fun expenses during chilling with friends,
• Buying entertainment stuff and items,
• And other essential non-essential items,

 These are the most common expenses that a student may have to spend their money on. So, if you also have these expenses or anything else, then you are required to write all the categories and the accurate or expected expense amount.

Organize your expenses into fixed and variable categories

Now that you have made a list of things and their expenses, you are required to bifurcate them into two groups: fixed expenses and variable expenses. 

• Fixed expenses are those that you need to spend your money on. You really cannot avoid paying your money, such as books, rent, phone bills, groceries, insurance, loan debt payments, etc. 
• Variable expenses are considered non-essential expenses. You can easily survive without spending your money on it. Variable expenses are gym membership, travel plans, vacations, friends hangouts, entertainment & social media site subscriptions, etc. 

Calculate and Plan Your Weekly Budget

After you have broken down the expenses and their categories into a sheet, you can move to the next step, calculating and planning your weekly or monthly budget. Calculate your total expense, then divide it into 4 weeks, or you can also divide it into 2 halves (15 days in each half). 

Once you do that, make a chart, put your fixed (essential) and variable (non-essential) on it, and plan how you are going to spend the money. If you think that you can remove some expenses, then you must remove them. 

However, it is advisable to make a budget on a weekly basis rather than per month. This will help you to be onboard throughout the month, which is better than going penniless.

Set a Target and Create Your Plan

Follow all the above-mentioned steps and work accordingly. By making a budget and planning your next move, you will be able to save extra money. Budgeting strategies can give you a gist about your financial condition and your survival needs. 

When you are making a budget plan, you will know whether you need to reduce your expenses or increase your income to save money and use it in a fruitful place. 

Tools to Use to Create a College Student Budget

Let’s check out the tools that can help you manage your budget in a proper and easy way. 

Budget Spreadsheet

If you want to do Money management, then the spreadsheet tool can be an ideal tool for you. Even if you are not good at maths, you can still use it without any worry. Simply enter all of your monthly income, then list all of your costs in the box that follows. The spreadsheet will then perform the computations and keep tabs on your ability to make ends meet each month.

Although you may budget as you go, it's also a wonderful tool for determining whether your resources will allow for your anticipated future spending. For instance, if you are budgeting for a summer vacation or making plans for the remainder of your academic year. 

The objective of this tool is to keep your balance (the amount of money left over after deducting expenses) positive. Your monthly budget should give you       a few pounds to save or spend on yourself. 

In case you discover that you are overspending or if your budget won't cover your expectations, then you will need to figure out how to get your spending under control. 

Budgeting Apps 

Budgeting has never been more straightforward. Thanks to technology, you can easily keep a close eye on your accounts with the aid of new banking apps.

All of your purchases will be organized into categories (such as food, entertainment, etc.), and you will receive push notifications in real-time when you are going over budget in each category. 

Along with more conventional banking features like overdrafts, in-credit interest, and joint accounts, several of these apps also provide savings options that can help you save up small sums of money each week.

Some of the top-ranked bank apps are; 

• Revolut
• Starling Bank
• Kroo
• Chase
• Monzo
• Monese
• Atom Bank
• Mint
• You need a Budget
• EveryDollar

Budgeting Calculators

There are numerous free budget calculators available online. They are typically simpler and more difficult to save or update as you go than a spreadsheet. Some of the best budget calculators are the “This is Money” student budget calculator and the “UCAS” budget calculator.

Different Tips for Saving Money 

By spending according to your budget, you can easily save money. But if you want to save some extra money, then you can follow the different tips given below. 

Try to avoid paying full price for your textbooks:

For your new class session, you need to buy books. However, textbooks can be very costly to use only for a year. But no worries, you can save your money on your textbooks; just try to buy secondhand books, rent them, or opt for e-books over hard copies. By doing this, you can save a ton of money. In case you do not want to use second-hand books, then you can buy new books, and after your session completion, you can sell them at reasonable prices to others who are in need of the books. 

Eat home-cooked food: 

Even if your college offers a canteen facility, it is still advisable to eat home-cooked food and avoid eating from canteens. According to a recent survey, the food price of the college canteen has nearly doubled in the past few decades. Most of your money will end up on outside food. By eating homemade food or self-cooked food, you can easily save money. Not only that, but you will be able to save your health as well.

Embrace communal living: 

If you are living alone, then instead of buying or renting an apartment for yourself, you should share a flat/apartment with your college friends, seniors, or juniors. This will split the among into two and will help you save your money. By sharing a flat or room, you can easily save your money on groceries and transportation as well. You can also try to live in the college campus rooms as it can be a bit cheaper than other rental options. 

Try to shop at Thrift Stores:

Do not shop through big brands; try to buy your clothes, furniture, and small appliances through thrift stores. These stores offer low-cost and convenient products in very good condition. 

Buy your needs through student discounts:

Shop through student discount offers. Many companies provide student discounts on their goods and services to aid thrifty college students and foster enduring client ties. Websites like RetailMeNot collect thorough lists of student discounts on products, including apparel, toiletries, software, food, subscriptions to media, and travel. 

Take Advantage of Campus Resources and Events:

Many schools and universities offer free public transportation through on-campus shuttles, off-campus buses, and bike rental services to reduce the financial stress on students and foster a feeling of community. So, to save money, you should definitely travel through these options.

You can also periodically check the events calendar at your institution for information on free events like concerts, movie nights, and networking functions. To have enjoyment but for free or at low cost. 

For all the latest updates visit our social media handles:

Facebook, Instagram, Twitter, YouTube, LinkedIn  

Blogspot, Quora, Tumblr, Pinterest, Medium