How To Budget
- BetterAskAdam.com
- Sep 7
- 6 min read
Updated: Sep 8
It's an exciting time if you or your child is starting university. But you might be surprised how quickly you start spending - accommodation, food, books & beer, entertainment, it all starts adding up very quickly. So it's good to spend a little time to make sure you have got control of your spending instead of it controlling you.
Q: Students will go from not spending much and living at home to suddenly spending a lot and being in charge of their budget for the first time in their life. How big a change is this?
If you are a parent/guardian - sitting down to help go through a budget - could be one of the most useful things you do to help a student get off to a string start in this new part of their life.
According to UCAS, in addition to the heavy cost of accommodation " the average student spends £247 per week? This skyrockets to £427 in Freshers’ Week alone (UCAS ‘Spend Student Lifestyle 2020’ Report). Managing this cost isn't easy. Almost a fifth of students (18%) told us that financial concerns had impacted their mental health or wellbeing, while 6% of university dropouts were finance-related (UCAS ‘Freshers Experience 2019’ Survey – January 2020)."
Q: What is the most important thing students and their parents can do today?
Just sit down and work out a budget. It can take as little as 30 mins to work out how to control your money. It will ensure you feel in control rather than it controlling you.
Q: So what sort of things should I budget for?
It's easy to forget some of the costs which turn out to be very significant. So here is a list of things to consider.
Gas/electricity/water
Broadband,
mobile phone
Food
Travel - Rail/bus/tube/coach
Drinking and eating out
Haircuts
Books
Subscriptions (gym, streaming services)
You can just write out a list of what you think you should spend on each and make sure it adds up to no more than the money you have coming in,
If you use an Excel sheet - it will do some of the additions for you - but just writing it down is fine.
Save the Student has a student budget sheet linked to in point one of its budgeting guide, which could help get you started.
Q: Are there some budgeting apps that can help?
The new app banks ( Monzo/Starling etc) have virtual pots into which you can save money to keep for things like Books/Food/Fun etc, but there are also a range of stand-alone apps.
Money Lover. Allows you to track your finances and notifies you of recurring transactions before they leave your account. There is a free and a paid for version. It is aimed at helping you keep track of your budget.
Cleo. is an AI driven range of products. The company says " Here, AI isn’t a feature. It’s our foundation. Cleo uses cutting-edge AI technology to help you actually understand (and master) your money. Cleo thinks, remembers, coaches, and speaks like a person but scales like software. She delivers the first truly conversational experience in finance." It is more than a single app to track your money. It does say that it helps "Create your own goals with Cleo. Maybe a vacation fund. Or a financial cushion. Decide how much to save, set your target date, and Cleo will keep you on track." So if you just want an app - this is probably not for you. But if you want a credit card as well - it might be worth considering.
It has had good review on TrustPilot - which says of the service: "Many users value the AI's engaging personality, which makes budgeting feel less like a chore and more like interacting with a supportive friend. However, some consumers have expressed concerns about payments and refunds. Some reviewers have also raised concerns about customer service responsiveness and the lack of transparency regarding fees. The app’s reliance on Facebook Messenger for communication has also raised privacy concerns among some consumers."
It seems a complex product and while it looks like ti might be really good - I have yet to be convinced.
HyperJar A free tool for budgeting and payments, and also has a function for group-shared expenses, if you and your housemates split bills. You load money onto the card and then spend from that pot.
The budgeting bit works by creating digital jars for your money - think of them as savings pots or piggy banks for each saving goal - such as holidays, books, entertainment, rent etc.
If your flat mates all join the app - you can share budgets. The app says: "You might want to spend with a partner, or footy club friends, people you’re travelling with or flatmates. Apart from the full-on commitment of joint accounts, which are clunky and irrelevant to lots of people, we just haven’t had the tools to spend well together. Enter HyperJar."
Everyone who wants to use HyperJar as a bill splitting app needs their own HyperJar account, which takes a couple of minutes to sign-up to, and there are no credit checks when you apply. It’s free to download and you have the option to pay £4.99 for a physical card, or use the free virtual card that comes with your account - both can be added to Apple Pay or Google Pay.
Q: How Do I shop smart and get discounts?
TRAVEL SAVINGS
You may be doing a fair amount of travelling, if you are studying far from home. So you can get a 16-25 railcard to save a third on rail fares.
LOYALTY DISCOUNT CARD OFFERING YOU GREAT DISCOUNT DEALS
Supermarket loyalty cards used to just give you points which you saved up and then eventually got you a discount or money off your bill.
When I was young the Co-op gave you Green Shield Stamps - you put them in a book and then swapped the book for things in an Argos-like catalogue so you could get an iron, hair dryer or lego set. But all that is ancient history, not the so called loyalty card gets your discounts straught away.
You don’t have to be loyal: you can own one for every supermarket. Most supermarkets,– have one although you usually have to be at least 18 to get them.
The Co-op works slightly differently and sometimes offers you £1 of your shops and also I hear doesn't work in some small franchices - but otherwise is similar. The co-op card costs £1 to join.
You don't usually need a card they should normally work via apps.
Q: How to Get Discounts Online?
Tips to Save Money
There are lots of sources for discounts
TOTUM offers a cashback virtual pre-pay card. You join for just £3.99 and earn cashback every time you spend at big brands including Asda, Primark, Sainsbury’s, B&Q, Waitrose, Argos, Waterstones and more!
Benefits of TOTUM Cashback:
Earn 6% cashback (Av) on purchases in-store and online
Over 80 big-name brands with more added all the time
No minimum top-up or top-up fees
Student Beans offers what it says are "unmissable student discounts from the brands you love the most...offered only to students studying at university, college, school and other places of higher education. From freebies, to money and percentages off the total price, discounts vary from brand to brand. All you need to do is flash your Student Beans iD card in-store, or add your promo code to your basket or at the checkout online to unlock discounts."
UNiDAYS is a digital platform that provides exclusive student offers and benefits with discounts on 800+ top brands, from fashion faves like ASOS and Adidas to Apple tech and Virgin Experience Days. It says "We're here for ALL students (and graduates, too!) That also means plenty of sixth forms and colleges. If you're currently studying at one of our available institutions and/or have a valid student ID card, you're all set to become a verified UNiDAYS member. After you've left your institution, you won't be able to re-verify your student account. But, don't worry! Full UNiDAYS members are automatically enrolled onto UNiDAYS GRADLiFE for 3 extra years."
Q: What about Buy Now Pay Later schemes that say they can help me budget?
Be Wary of Buy Now Pay Later
University students can expect to get loads of offers from retailers and Buy Now Pay Later (BNPL) schemes. But these can give you the illusion that you can afford things you actually can’t afford.
They are so ubiquitous that it is often embedded in the check-out - so for instance you press the Klana button instead of Google/Apple Pay or your debt card. That makes it very easy to use and very appealing. You can use something like Klana to get an interest-free period, but it's an easy bad habit to get into if you don't pay it off - your debt can start spiralling. So be very careful!
Listen to Money Matters on Times Radio with me, Fi Glover and Jane Garvey at 3:45pm on Mondays.
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Please remember everything on this site is journalist commentary and is not financial advice or guidance in anyway.
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