View this great video on Students and Money Management by the Money Advice Service.
People tend to budget using different methods. Whilst you need to choose a system that is right for you, you also need to ensure you have accounted for all of your spending in a format that others can also make sense of if needed.
Fortunately, the internet makes certain tasks a lot less difficult than they used to be. For instance, Money Saving Expert created a Student Budgeting Planner which takes into account the majority of outgoings that a student would make. If you have not got the time to set up a budgeting system of your own, we recommend you to give it a try, and print out the results for future reference.
The Student Money Advice Team offers Money Management support please book in an appointment for help in managing your finances.
If you budget well you will be able to avoid the following:
Avoid taking out Pay Day loans
It has been recently suggested in a survey that up to 46,000 undergraduates may have borrowed from pay day lenders last year. Majority of students are unable to meet the repayments as they do not have a regular income. Here are the 5 top reasons given by Consumer Affairs on why pay day loans should be avoided:
- Payday lenders profit tremendously from people not paying back on time.
- Payday loans may harm your credit rating.
- The payday industry is rapidly growing.
- A payday loan in the UK is much more expensive than in other developed countries.
- There are numerous cheaper, less risky alternatives to payday loans.
NUS Tips for budgeting
- Spread your money – If you receive a loan, spread it across a period of time rather than spending it all at once.
- Prioritise – Always make sure bills are paid first. You can change the date you pay your bills so that they leave your account soon after payday. Allow at least three working days in case payday or your bills fall on a weekend.
- Be disciplined – Cut out luxury spending by not giving in to impulse buys.
- Stick to it – At first it might seem hard, but budgeting will soon become second nature.
- Be realistic – Allow for coffee breaks and nights out. Don’t forget to factor in unforeseen costs like birthdays, Christmas and unexpected travel home. If you have a car, be mindful of the cost of petrol and repairs.
- Maximise your income – Providing all assignments are done, consider doing overtime at work, especially in the Christmas and summer holidays.