How to manage your money well and build foundations for the future
Building healthy financial habits whilst at university is important. Managing what comes in (Income) against what goes out (Expenditure) is the first step in building good habits.
You will often need to pay some bills up front (rent, house deposit, some university fees), some costs you will pay as you incur them (food, socialising, printing), whilst some other costs you will need to save and pay for after you have already received the service (energy bills, phone contract, some university fees). With such a range of different bills due at different times It can be hard to know what you have left to spend on travel, buying new clothes and dealing with unexpected costs.
You may also need to plan for a period of not being able to take paid work during exams, whilst bills are still due. It is for this reason and many more why having a budget or a plan of how you will fund your studies is so important. This guide aims to provide some options for how you can regain control of your finances before, during and after your time at university.
- Firstly, you need to know what your income is each month, what Expenditure you have, and how often these are paid. Completing a budget is a great way to do this. Below are links to a few of these you can use:
https://www.moneyadviceservice.org.uk/en/tools/budget-planner
https://www.savethestudent.org/money/student-budgeting/student-budgeting.html (excel file)
- Next you want to track your spend and understand what you are buying. This can be done via spend diaries or new mobile apps that replace your current card and track where you use your card as well as providing many of the benefits new mobile app-based banks offer such as fee free withdrawals abroad. Links to both of these below:
https://onplanners.com/template/monthly-budget-tracker
https://www.st-andrews.ac.uk/students/money/bankaccounts/monzoandcurve/
- Just as you can improve your physical health through training, you can improve your financial health through undertaking money training. There are a number of training modules you can complete to improve your money skills:
Online module | Money Advice Scotland
- Some people find it easier to have separate “pots” for socialising, food, clothing etc. This is often referred to as Jam-Jar budgeting and more information can be found by clicking the link. You can do this by taking out cash to put into each “pot” or you can open separate accounts. Some new mobile apps allow you to make these pots to keep money separate. Some examples are listed below:
https://www.st-andrews.ac.uk/students/money/bankaccounts/monzoandcurve/
- You may decide to live using only cash and ditch the card. This approach works well as you know what you have for the week and see the money depleting, so you always know how close you are to your budget. It is also proven you are less likely to spend the same amount if you have to pay with cash (you also can’t spend more than you have) so may find you have some left to save.
By following the steps above you will be aware of any areas in which you are spending more than you need to and any areas where you are struggling to find the money to cover basis costs. If you find you still do not have enough or that unexpected costs arise that cause your costs to rise you can contact the money team who will be happy to help and discuss the options available to you.
The university has a range of funds available to support students from both the UK (Discretionary Fund) and Internationally (International Student Hardship Fund). These funds make awards to those students most in need and the money does not need to be paid back.
Following the steps above, allows the university to support the maximum number of students qualifying for assistance, it also helps students enhance money management skills that will serve them well in the future once they move into post-university life.