Budgeting

There is barely a student in the world who does not need to budget, so that should be a comfort when carrying out this more sober aspect of student life. Of course, before you draw up a budget you will need some money to budget with.

If this is coming from your parents, ask them to pay rent and fees direct to the repective providers, which will probably make life simpler. When it comes to 'spending money', ask them to pay it into your account weekly rather than monthly. This will make sure it conincides with the important things like the food shop and transport.

If you are relying on borrowing to budget, the sums will be more complex. When you get your loan, work out how much of it you’ve got left to spend after you pay your fees. Chances are it won’t be much, but when you add that to your overdraft you should have enough to get by at least.

Divide the amount by the number of weeks in the term and set yourself a weekly allowance. If you’re not in halls then don’t forget about rent. Try to stick to your weekly budget and remember it is a limit, not a target! It may be helpful to withdraw your whole budget at the start of the week, so that you can always see how much you have left. That will stop you from accidentally over-spending by using a debit or credit card.

When it comes to budgeting in the broader sense of the word - for example simply spending less money - here are some valuable tips to help you do it more efficiently. 

Shop smart

Don’t blow all your money on pricey food - you can still eat well without splashing the cash. Stop by the supermarket at the end of the day, when goods on their sell-by date will be marked down. This is a great way to get premium produce at low prices. Also, check out places like Lidl and Aldi: often they are further out of town so you can’t go there for a regular shop, but you could pay a visit at the start of term to stock up on cheap canned goods. Aldi carries big-brand items at lower prices than other supermarkets and Lidl has unknown brands that are often better than the cheap stuff at the big supermarkets.

Buy in bulk

It’s tempting to buy small packets and ready meals when you are providing for yourself, but buying in bulk and buying fresh ingredients usually works out cheaper. Go shopping with friends and split the cost of giant packs and BOGOFs (“buy one get one free”). Your mum may have favoured Sainsbury’s or Waitrose for the weekly shop, but now that your resources are scarce check out the discounters such as Lidl, Aldi and Netto. You may be pleasantly surprised. Loo rolls and cleaning materials are excellent value, things like honey, jam and instant coffee are good quality and the fresh vegetables are good, too.

Don’t let fuel burn a hole in your pocket

As soon as you’re living out of halls you need to make sure you’re getting the best energy deal. Price comparison website uswitch.com suggests switching to a dual fuel company that provides both gas and electricity, paying by direct debit and signing up to an online plan, all of which could save you £200.

Bills will be based on estimates, so make sure you call up the company regularly to give them meter readings to ensure you’re not overcharged. Also, check you’re not leaving TVs and stereos on standby and keeping phone and ipod chargers plugged in after you’ve finished using them; these are guaranteed ways to bump up your bill.

Surf, view and chat at the best prices

Make sure you shop around for good deals on internet, cable and phone lines. Most students want more than the terrestrial channels so will at least want a Freeview box. But it’s possible to find bargains on 3-in-1 contracts, which include broadband, TV and a landline with some free calls. Check out Virgin Media and Sky for special offers. Don’t forget to get a TV licence from the post office - the fines are far greater than the cost of the licence.

Bag a budget broadband connection

If you haven’t sorted it out for your student accommodation, and now you wonder if it is worth getting a contract that you will have to pay for a whole year, have a look at Virgin broadband, which will only tie you in for a month at a time.

One of the best things you can do to save money is to secure your wireless router. Or put it another way, if you don’t secure your router to at least WPA encryption standards, your personal details are at risk of being revealed to hackers, which can prove very expensive if they include your bank or other credit details.

Keep in touch with the best mobile deal 

It could also be a good time to re-assess your mobile contract. Students blow £20 million a year on unsuitable phone contracts, according to research by phone service provider Noodle. Once you’re living away from home you may start using your mobile a lot more and exceeding the allowances offered by your current deal, which can really boost your bill.

Honestly consider how much you call and text and think about switching to a better deal. It may be more expensive on a monthly basis but will save you money on the excess charges you’re ringing up by exceeding your allowance, and could save you serious money in the long run.

A student truly trying to save money will have an old but functional phone with a pay-as-you-go tariff and use the phone infrequently. Well, that’s the theory. In reality students could no more save money by using their phone sparingly than they could cut off their right arm, so it is essential to get the right phone on the right tariff. A website such as www.onecompare.com can help you choose.

If you have an old phone you don’t need, www.envirophone.com will not only recycle it but will also give you money for it.

Remember not to pay tax on holiday jobs

If you take a job in the holidays (but not term-time), and you know you aren’t going to earn enough in one year to make you liable for tax, ask your employer for form P38(S) so you can be paid gross.

Get cashback on your hall fees

You probably won’t be able to get a cashback credit card yourself, as they tend only to be given to high earners with a good credit record. Students should in any case treat credit cards – even those branded as being suitable for students – with extreme caution, as they are a route to serious debts.

But the chances are your parents have credit cards. If they have one that gives cashback, such as American Express, Morgan Stanley Platinum or Egg Money, get them to pay your hall bills for you, and you can repay them immediately from your loan. If they have no other borrowing on the cashback card, they won’t incur any interest charges and you can split the cashback with them.

Make sure you use student discounts

Being a student entitles you to lots of discounts, from cheap cinema tickets to cut price CDs. Get into the habit of asking everywhere you shop if they give a student discount – there’s nothing to lose, at worst they can only say no. The best guide to student discounts is to be found at http://www.nusonline.co.uk/extra/. But there will be local shops that don’t feature in the national guide. Look out for student discounts on special days, such as those given by hairdressers.

Travel light with cheap train tickets

If you use the train to travel home, or just to get around, you will probably already have a student discount railcard – you may have even got one free if you opened a student bank account, like the one at NatWest. However, the train companies have a pricing system these days that would outwit Einstein, and sometimes it can be better to buy a full-price advance purchase ticket than to use your railcard.

Use a website like www.thetrainline.com to research your journey options and look out for special rates. It is also often cheaper to buy two cut-price singles than a return. It can also sometimes be cheaper to buy two tickets for a single long journey than one for the whole, especially if you set out during the morning peak time. For instance, it can sometimes be cheaper to buy a peak ticket for the part of the journey that lasts during the peak period and switch to an offpeak ticket for the remainder of the trip without even getting out of your seat. Research before you travel.

Register for free prescriptions

Unfortunately, once you reach the age of 19 you have to pay for prescriptions, eye tests and other medical services which were previously free while you were in full-time education.

However, since as a student you are almost certainly on a low income, you can still obtain free medical, dental and optical services by getting hold of an HC2 certificate. You do this by filling in an HC1 form, which can be picked up from a Jobcentre Plus office or NHS hospital. You may also be able to get one from your doctor, dentist or optician.

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