10 Essential Money Tips For Students (And Anyone Else Who Needs To Keep Their Budget In Check)

Managing money is a skill we all need to learn, but it’s not something we’re all taught and it’s not an easy concept to navigate. It can be especially difficult if you are a student living away from home for the first time. Having to keep on top of your finances independently whilst navigating new responsibilities and freedoms can be a steep learning curve.

But there are a few key things you can do to make sure you use the money you have effectively and spend it well, to get the most of your student budget.

1. Get To Know Your Finances.

This may sound obvious but before you can manage your money, you need to get to know it. That means having access to your accounts, knowing how much money you actually have at any given time and understanding how long it has to last. If you're moving away from home, this might be your first taste of financial freedom and you may not have much experience of managing your money. Not only that, but you’ll have a lot of other new things to deal with as you adjust to student life.

So it’s important to keep on top of your finances by keeping an eye on your spending and your bank balance so there are no big surprises. You’ll have lots of new expenses and your income might come in at different times of the year, and from various sources - family, student loans, bursary schemes or part-time work. In short, there’s a lot to juggle and the financial support you receive will not be unlimited, so you need to know where you stand from day one.

2. Create A Budget.

One of the first things to learn is how to budget. Yes, it can feel intimidating - many people jump straight to negative thoughts of complicated spreadsheets and restricted spending. But that’s not actually the point of a budget. Its purpose is not to limit what you spend, it’s about helping you to track your money so that you can live within your means and spend what you have well.

Knowing exactly how much you have coming in and how much you need for essential expenses each month - or each week or each semester, depending on how frequently you receive your income - helps you to remain focused. It shows how much you are spending on non-negotiables like rent, utility bills and fees and on other essentials such as food, phone and transport costs. When that’s accounted for you will see how much you have left for shopping and socialising. It doesn’t have to be complicated, and there are lots of student budget planners and free budgeting apps online to get you started. But, just like a gym membership or a pair of running shoes, you do need to use it for it to work.

3. Know Your Limits.

Once you make a start on getting your budgeting skills in order, it’s easier to see where you are overspending and do something about it. Of course, there are some costs that you can’t change, but when you start keeping track of where your money is going you might be surprised by just how much you are spending on the ‘optionals’ such as food deliveries and new clothes. Limiting spending on these things doesn’t necessarily mean depriving yourself. It’s about a shift in focus.

For example, if nights out or takeaways at the end of the evening are making a big dent in your budget, organise a few social nights-in with your friends. Everyone can bring something along, whether it’s food or drink, to spread the costs. If your friends are also students, or they’re living on a tight budget, they’ll probably be glad of the opportunity to socialise without spending too much. There are lots of ways to cut back on the cost of clothes too, by re-styling old favourites or buying pre-loved items rather than buying new.

4. Shop Wisely.

A trip to the grocery store will no doubt be one of the first things you do if you’re going off island to study. Food shopping will be a big part of your weekly expenditure, so it’s important to shop around to match your budget. From specialty shops to discount supermarket chains, you’ll be surprised by how much choice there is - and how much the cost varies from place to place.

As well as thinking about where, you should also consider when you shop, with many supermarkets offering cut price products later in the day on foods approaching their best before dates. And there are lots of discounts and deals that can help make your money go further - but only if you actually need what you’re buying. Don’t get drawn into two-for-one purchases then end up throwing one away!

5. Discover Discounts.

There are lots of local discounts and perks for students, and in many cases all you have to do is show your student ID card to access them. Some may be specific to your place of study, like shuttle bus services, gym memberships and university managed cafes, whereas some schemes are city or country wide, such as discounted travel cards. You can also use various apps and cards to access student discounts in shops, restaurants and entertainment venues.

Your university will provide details of the free and discounted services they offer, and there are also lots of student websites that can point you in the right direction for nationwide discounts. But most of the best recommendations will come from chatting to your fellow students or through word of mouth… Like the Aurigny free student baggage allowance and the Blue Islands student hold luggage offer.

6. Set Boundaries.

It can be easy to get carried away with spending, especially when you have money in your pocket at the start of term. But it has to last, and although the odd splurge in freshers week or at Christmas is probably do-able, you need to be aware of your spending limits and manage not only your expectations but also those of your friends and family. So speak with them and set spending limits for things like nights out. If you’re socialising with other students, they’re probably in a similar situation and will appreciate you being upfront about your cash flow situation. Plan ahead when it comes to gifting too, and set limits on the amount you spend on Christmas and birthday presents. People will understand, and it really is the thought that counts, so don’t feel that you need to blow your budget on gifts that will cause you financial stress.

7. Separate Needs From Wants.

What you want and what you need are often two entirely different things, but it’s not always easy to separate the two. That’s where it’s important to spend mindfully and take a moment to stop and think before you buy. If it’s something you need and you can afford it, then it makes sense to buy it. But if it’s not a necessity, consider this - will it add to your financial stress? If the answer is yes, then ask yourself, is it really worth it? If it brings short term gratification at the expense of longer term financial security, it’s just not.

8. Celebrate Your Wins.

Managing your money, especially if you’re on a tight budget, is no easy task. It’s challenging and it can be a bit of a rollercoaster to say the least. So don’t forget to celebrate your achievements. Financial success looks different to different people, depending on your stage of life, and you should be proud of the little wins as well as the big budgeting achievements. Whatever your goals, whether it’s managing to put some money away for a special trip or simply getting to the end of the month with a few pounds to spare, take a moment to acknowledge your accomplishments.

9. Prepare For Emergencies.

Life has a habit of throwing curve balls your way, so it’s always good to be prepared and plan ahead to ensure you have the financial means to deal with them. Money might not always be the answer, but knowing that you have a rainy day fund for unexpected expenses is reassuring. Whether it’s an unforeseen bill or an emergency trip, having savings set aside for such situations can give you peace of mind and take away some of the stress. It also gives you the practical means you need to help you deal with the unexpected, without maxing out your credit cards or falling into debt.

10. Explore Your Options.

Even with the best of intentions, it can be challenging to manage the costs of study, accommodation and your general living expenses on a student budget. But financial support is available, and who you turn to first will depend on your individual situation. You may be eligible for some financial assistance from the States, and there are also private student loan options available to support or supplement your student finances. Speak to the experts who can help you plan for your student years and create a bespoke financial plan that works for you.