The simplest advice to give about budgeting is just to know how much money you have. This sounds simple, but by the time you have to think about rent, bills, phones, shopping, nights out, and all those other things that don’t seem obvious (but still cost a fortune), it really isn’t easy to keep track of everything!

If you are able to do this, you will know how much you have spare, and therefore how much extra you can spend. It sounds silly and ridiculous, but the easiest way to do this is to have a cash book (or just write it down somewhere – on a computer if you like), in which you write down everything that is going both in and out of your bank account: have a page per month, and list all of the transactions that you know are going to take place (rent, food, etc). This is the money that will be debited from your account during the month. Then list all of the money that you know will be coming into your account – this will be your credit amount. When you take away the debit from the credit, you will end up with ‘spare’ money for the month.

Internet banking is a really good way of checking the balance and transactions from your account which should help to keep you in credit. Try not to use your bank card for menial things during the week, instead withdraw the amount you think you will need and only use that – Calvin Call (writing for the BBC), says that ‘Changing small things can save up to £150 a month.’ He thinks that a ‘keen student can manage on £30-£40 per week hard cash, after rent and bills.’

When you apply for university, they should give you details of the cost of accommodation in their area. Excluding London, I believe (at the time of writing) the usual cost of accommodation is roughly £80 per week for self-catered, and £115 per week for catered rooms – it’s worth contacting the university/letting company directly to find out the exact prices. Most places will require you to put down a bond (or deposit) of roughly £200 in September, which will be returned to you at the end of the academic year providing you care adequately for the rooms and communal areas. The rent is usually paid in three instalments, which coincides with the student loan payments (September, January and April). If you are living in a self-catered room, I would advise budgeting for £15-£30 a week for food shopping, depending on your local supermarket and choice of items.

When you begin university, you will be given reading lists of required books and equipment that you will need for your course. Depending on the type of course, this can prove to be very costly, so it is a good idea to set aside some money to cover the cost of this. Some Universities offer bus passes which allow you to travel within the city for free, after a one-off payment is made at the beginning of the year. This is worth remembering as a possible expenditure, as it can be very useful for getting around. Another good idea is to have a moneybox with any loose change that you have in it – this will easily make up your laundry money!
Another thing: get an NUS card – and use it!! It really will save you a lot of money on things that you were going to buy anyway (Amazon.co.uk/McDonalds etc.)!

If you do get into financial trouble, talk to your bank and university – there are funds put aside to help people who are having difficulties. However, possibly the best advice that was given to me regarding budgeting was at an open day for prospective students. Interest free overdrafts are essential – they give that extra security and allow you to have the ‘occasional’ night out!! Paul from Newcastle university gives some really good advice: ‘Use your sense instead of looking at marketing ploys,’ – think about the extra money that you may need rather than the ‘extra’ stuff that apparently comes along with the bank account (i.e. look for the bank that gives the largest overdraft at the best rate, rather than the one which gives you a free MP3 player, but rubbish rates!). Just don’t fall into the trap of relying on this overdraft to get you through the year and the summer – a summer job will be essential to clear it and prepare your bank account for the following year!

By Alison W, 2nd Year from University of Wales Institute, Cardiff

Have a look at our Student Loans article and Budgeting for broadband. Or search for a uni.