University budgeting tips

For many students, going to university is their first experience of living away from home.

This exciting time comes with many new responsibilities, including the need to manage your own finances.

It might be that your student loan is the largest amount of money you’ve ever received but remember — it needs to last all term. 

Rent is probably your biggest monthly living cost, whether you’re in halls or private accommodation. The 2026 National Student Money Survey found it uses 48% of the average student’s budget.

You won’t always be able to make huge savings when it comes to your rent, but these top tips can help.

It might not sound like the obvious way to save money but reading and understanding your tenancy agreement is essential.

Most rental agreements are standard but check the small print for clauses or restrictions that could cost you some or all of your deposit when you leave. Ask your landlord or agency to clarify anything you don't understand.

As a student, you have the same rights as any other private renter. 

Find out what you’re entitled to and what’s expected of you in our guide Tenants’ rights and responsibilities explained. 

If you’re renting privately, sharing a property with multiple people could lower your rent and bills. You can also split the cost of things you all use like broadband and streaming services so you’re not all paying individually. 

If you’re happy with less space, ask your housemates if you can have a reduction in your rent if you take the smallest room in the property, and they pay a little more. 

‘All bills included' rent sounds convenient, but it’s not always the best deal. 

Your tenancy agreement could come with a 'fair usage' condition, which states how much energy or water your landlord thinks you should use during your tenancy. If you go over that amount, you could be charged extra. 

You’ll also pay the same each month, regardless of how much you actually use – which isn’t a great deal if you’re all home for Christmas and everything is switched off.

Ask your landlord what the rent would be without bills included, then work out which option works out cheaper.  

Don’t take the first property you see. Compare a few areas and properties first, and you could find a suitable room for less.

Rent is often cheaper further from campus but check that any savings you make aren't wiped out by higher travel costs.

Full-time students in England, Scotland and Wales don’t pay Council Tax, but how much your household saves depends on who you live with.

• If your household are all full-time students, you pay zero Council Tax, but you need to remember to claim this with a student certificate. University halls are usually exempt automatically. 

• If you’re sharing with one non-student, your household gets a 25% single-person discount.

• If you share with 2 or more working non-students, they are responsible for the full Council Tax bill, not you, unless one of them is a 'disregarded person' (someone who isn't counted as a resident for Council Tax purposes).

Special rules also apply if you live only with a non-British spouse, partner or dependant. 

You can find more details and the full list of who qualifies as a disregarded person in Citizen Advice’s guide Check if you can pay less Council TaxOpens in a new window

When you receive your maintenance loan or other awards or means-tested funding at the beginning of each term, it can seem like a lot of money.

But making it last for both the academic year and holidays, can be quite a stretch.

It’s a good idea to work out a budget based on the money you have coming in and out, and check it regularly.

If university is the first time you’re covering your own bills and everyday costs, putting a budget together can feel like a lot. 

Start simple. Write down what money you have coming in, and what you spend each month. 

If you don’t know exact figures, just make an informed guess or add up what you spend in a year and divide by 12.  

Make sure that your income is either more than or equal to your outgoing expenses, on a weekly or monthly basis.

Take a few minutes to complete our Budget planner to get a clear breakdown of where your money’s going each month – and spot areas where you could cut back if you’re overspending.

Put a little cash aside for emergencies if you can. Keep it in a separate account you won't dip into unless you really need to. 

Even a £100 buffer could stop you reaching for your overdraft when you’re hit with an unexpected cost.  

Find out more about Getting into the savings habit

It’s easy to skip insurance to save money. But could you afford to replace your phone or laptop if something happened to them?

As a student, you can be a target for crime, especially around freshers’ week.

Check whether you’re already covered under your parents' home or contents insurance while you're at university. They may be able to add you to their policy for a fee.

If not, consider buying contents insurance yourself to protect the things you’d find hard to replace if they were lost, damaged or stolen.

This is a common problem faced by thousands of students.

Consider the following:

• Increasing your income — depending on your study schedule, taking on part-time work could make a big difference to your budget.
• Speaking to an adviser — your university or college should have a student money adviser or support services that can help you to manage your money.
• Reducing your expenses — look what you’re spending money on. Are there any areas that you could cut down on? Swapping branded products for supermarket-own brands or sharing meal costs could save you money
• Consider borrowing — tried everything else? Consider borrowing options such as an authorised, interest-free overdraft or a credit card that might come with your student account. Only ever borrow what you need and what you can repay.

If you need to borrow money to help support you while you study, remember this will need to be repaid. Read our guide How to deal with debts after graduation.

If you find you’re spending more than you earn, use these tips to help reduce your expenses while at university, and read our full guide How to save money on household bills. 

Use these tips to stay on budget doing your weekly shop:

• make a shopping list before setting off and stick to it

• batch cook - learn one or two easy dishes to cook in bulk and store in the freezer

• do ‘family’ dinners with your housemates – cook and eat a meal together to share the cost of ingredients

• try and buy own brand or reduced food to keep costs down.
  

You can also make use of popular food waste websites for recipe ideas using what’s in your fridge, and find local shops and restaurants offering discounted food: 

• Love food hate wasteOpens in a new window 

• Too Good To GoOpens in a new window

University books and equipment can be much more expensive than what you’re used to buying in the past. 

When you get your reading list, try and get as much as you can from the university library or buy second-hand where possible. 

Some university libraries and student unions hold book swaps and pop-up book exchange events, so check bulletin boards and social media for details.  

You need a TV licence if you watch live TV or BBC iPlayer on any device, including a TV, computer, tablet, phone or games console.

The good news is you can claim a monthly refund on your TV licence fee for any months you’re not using it.

So, if you go home for the summer, you can reclaim for the months you’re not watching TV in your student accommodation, as long as at least one month is left on your licence that you won't use.

Visit TV Licence refund: how to claim yoursOpens in a new window on the Save the Student website to find out more. 

Maintenance loans are meant to cover your living costs, so budgeting is essential.

You’re paid in three instalments, one payment at the start of each term, unless you’re in Scotland, where these loans are paid monthly. 

What you’re entitled to depends on where you live and where your university or college is. It's also partly means-tested, so how much you get also depends on household income.

For most students, this means the earnings of the parent or parents you live with are taken into account, on the assumption that they’ll be able to contribute to your education. In practice, this means students from poorer households usually get the most financial support.

Depending on which nation you’re in and the student finance agency that applies to you, there might also be other means tested grants and funding options available.

You don’t usually have to repay grants or bursaries, but you’ll only be eligible for them if you meet certain criteria. Conditions can apply, and some funding may need to be repaid if your circumstances change, for example if you leave your course.

For more information on maintenance loans, grants, bursaries and awards, visit:

• Student Finance EnglandOpens in a new window on GOV.UK

• Student Awards Agency for ScotlandOpens in a new window

• Student Finance WalesOpens in a new window

• Student Finance Northern IrelandOpens in a new window

If you’re struggling to keep up with bills or cover the cost of rent, there are other ways to get grants to help.

Talk to your university about what support they can offer. Many institutions have a hardship fund that could help you afford to stay in education. 

Find out about grants, bursaries and scholarship fundsOpens in a new window on the Save the Student website.

Most full-time students can’t claim means-tested benefits, like Universal Credit. But if you have a disability or are a carer for a young child, you might be able to claim certain benefits. 

Find more information about all the benefits available for students on the turn2us website: 

• Full-time students and benefitsOpens in a new window

• Part-time students and benefitsOpens in a new window

There are lots of great discounts available to students for money off in shops, at restaurants, for transport, and lots more. But don’t use this as a reason to spend money on things that you don’t really need.

Use your university login to get discounts online and in store through these apps:

• Totum cardOpens in a new window

•  UnidaysOpens in a new window   

• Student BeansOpens in a new window 

Once you’ve worked out your budget, you’ll see if taking on part-time work is a good idea.

This could be during the holidays or term time.

Student-friendly jobs often come with zero hours contracts, which can make it hard to budget when you don’t know exactly how much you’ll earn each month.

Read our guide to learn How to budget for an irregular income.

But don’t neglect your studies — research shows that more than 20 hours of work a week can have a negative impact on academic performance.

So if you’re aiming for a job during term time, try and find a good work and study balance.

Whether it’s your commute to class or heading back home for the holidays, you’ll need to include travel costs in your budget.

There are lots of student travel cards and deals to reduce costs, so check what transport companies offer where you’re studying and book in advance for additional savings.

Discounts include:

• 16-17 Saver RailcardOpens in a new window saves 50% on train fares – buy it the day before you turn 18 to get discounted travel until you turn 19.
• 16-25 Railcard saves one-third on many train fares
• 26-30 Railcard saves one-third on train fares
• Young Persons Coachcard saves one-third off coach travel
• 18+ Student Oyster PhotocardOpens in a new window  saves 30% on London Travelcards and Bus & Tram season tickets
• yLink Card (Northern Ireland) saves for 50% on bus and rail travel.

For long term savings, consider buying a bicycle. Remember to get a good lock for it too. 

Don’t hesitate to get free advice using our Debt advice locator if you feel your repayments are becoming an issue.

Debt is a reality for many students and can cause stress and anxiety.

Most universities and colleges will have a student money adviser or support services available to help you develop budgeting techniques and inform you of any financial help options available to you as a student, such as Hardship fundsOpens in a new window

Moving away from home for the first time is exciting. But it can also make you an easy target for scammers.

Has someone asked you to hold their money in your bank account, and then send it on to someone else? 

It might seem like a simple favour, but don’t do it. This is called being a money mule, and it's illegal.

If you’re involved in this form of money laundering, your bank accounts can be shut down, making it hard to open a new one. And at worst, you could face up to 14 years in prison if you took part knowingly.

Read more in our blog Money mules – what are they and could you fall victim? 

Think very carefully before putting any of your money into investments to boost your income. 

Investment scams are designed to persuade you to hand over money, and they can look very convincing. Be wary of anyone promising a way for you to make easy money, particularly on social media, by touting cryptocurrency or investing in certain stocks or funds. 

Find out more in our guide How to spot an investment scam.