Budgeting and managing your day-to-day living costs are essential life skills to learn, and knowing how to do it correctly can help you feel more in control of your money.
Your maintenance loan will be paid into your bank account in 3 instalments – usually late September/early October, early January, and early April. It may seem as though you have loads to spend when the money comes in, but it needs to last you at least 3 months until your next payment.
It may also need to last beyond that – you will need to consider what you will do for income during the summer period, and how you will pay a deposit or summer rent on any accommodation.
Essentially, budgeting is looking at what you’ve got coming in, versus what you have going out. Your income will be your maintenance loan, and you might have income from part-time work, family contributions, or savings. Outgoings include essentials like rent, bills, food, and travel; as well as non-essentials like going out, clothes, and hobbies.
Once you have added all your income together and subtracted all your outgoings, anything you are left with is a surplus. If you’ve budgeted correctly and considered all expenditure, this is yours to do what you want with.
If you put together a budget and find it doesn’t balance – your outgoings are higher than your incomings – this is called a deficit budget. You may need to reconsider some costs such as finding cheaper alternative accommodation or spending less on non-essential outgoings. You may need to also consider finding alternative income streams such as through work, family contribution, grants, or an overdraft. If you have a deficit budget, please get in touch with an advisor for support.
When completing your budget, you may prefer to know what you have available to spend on a weekly or monthly basis:
- If your total income needs to last only the academic year (for example because you have a summer job back home) – divide your total amount of income by 36 for a weekly budget; or by 9 for a monthly budget*
- If your total income needs to last the full calendar year (for example because you can’t work over the summer) – divide your total amount of income by 52 for a weekly budget; or by 12 for a monthly budget
*36 weeks/9 months are standard courses only – some courses run longer. Check with your school if you aren’t sure how long your academic year is.
When you’re making a budget, have a look back over your bank statements – these will give you some ideas what you’re spending on, and may even let you know where you could cut back!
Money Saving Expert has an in-depth guide on budgeting, including free budget planners, expenses to consider, and techniques for managing your money.
MoneyHelper has a free, detailed budget planner you can save and amend.
Blackbullion also offer a free budget planner and further advice specific to students
If you want any help putting a budget together, please contact an advisor.
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