Starting uni is an exciting chapter. There are new experiences. New opportunities. And, yes, new challenges. That’s all part of the journey. One challenge you might encounter is learning to manage your finances effectively. After all, it could well be your first time living away from home. You’ll need enough money for everything you need – from fees and accommodation to fun stuff with your friends. Creating and sticking to a budget is essential for ensuring you can focus on your studies (and social life) without money worries. And we’ve got your back if you need a helping hand. This post is a guide on how to make a budget for university to get the most bang for your buck.
How to make a budget for university: step-by-step
1. Understand your income
Get a clear picture of how much money you have coming in. Then you’ll know how much you’ll need to cover your expenses. Take stock – and research – what your income streams are, or could be. That’s things like:
- Part-time jobs: Many students work part-time to support themselves while studying. Of course, it’s essential to balance your job with study and downtime. Your number one priority is definitely getting your degree and enjoying university life, so make sure your work schedule allows enough time for both.
- Scholarships and grants: Scholarships and grants are a fantastic way to fund your education – and you don’t have to pay them back! At Charles Sturt we have more that $10 million in scholarships available each year. Should you apply for one? Yeah, definitely. Several if you can. You’ve got to be in it to win it.
- Student loans: Student loans like HECS-HELP can be a crucial part of financing your education. It’s super important to understand the terms and conditions of your loans, including interest rates and repayment schedules, before you sign on the dotted line to avoid any surprises after graduation.
- Allowance from parents: If your folks are willing to give you a financial helping hand, that’s great. Include it in your budget and have a chat with them so everyone’s clear on how it will work.
- Savings: If you have savings, plan to use them wisely. Spread them out over the academic year to ensure they last. They can also be a good reserve to help cover unexpected expenses.
Tips for estimating income
Be realistic. Don’t overestimate your income. Include only reliable sources and be conservative with your estimates to avoid shortfalls.
Research all possible sources. Scholarships and grants can come from lots of different places, not just the uni. Local businesses, industry organisations and community groups can also offer financial help to students.
Account for fluctuations. Some income sources, like part-time jobs, especially those with casual shifts, might vary. Plan for these fluctuations by averaging your income over several months.
2. Identify your expenses
Once you’ve worked out your incomings, it’s time for, you guessed it, your expenses. There are a few things you’ll probably need to account for.
Fixed expenses
These are things that you have to pay for. Top of the list will be your tuition fees. Know the exact amount, payment deadlines and whether there are any payment plans available to spread out the cost (plus, if you are getting HECS-HELP, how much that covers). Rent is another expense if you’re living on campus or moving into a campus town. Whether you’re living in uni accommodation or renting privately, know your monthly rent and any additional fees, such as utilities or maintenance costs. (One big benefit of living on campus at Charles Sturt is that all utilities – and wi-fi – are included in your rent.) Also, account for public transport costs, or if you run a car petrol and car maintenance.
Variable expenses
As the name suggests, these are costs that you can ‘manage’; you decide how much you want to spend on them. So, that’s things like groceries (meal planning can be a great way to stay within budget), dining out, entertainment costs like going to the cinema, concerts, social activities and pursuing your hobbies. Plus, things like clothes shopping (op shops are your friend!).
Irregular expenses
These are the costs you’ll encounter more occasionally. They include things like topping up your stationery supplies or replacing computer storage devices, regular medication, health insurance premiums and other medical costs – as well as trips home, holidays and any travel required for your studies. Top tip: booking in advance can save you money!
Tips for tracking expenses
Keep all receipts: This really helps you know what you’re spending and identify areas where you can cut back.
Use budgeting apps or spreadsheets: When it comes to the tech side of making a budget for university, these tools (such as apps like Frollo, PocketGuard, and MoneyBrilliant) can simplify tracking and managing expenses, providing you with a clear overview of your finances.
3. Create your budget
Now you know all the ins and outs of how to make a budget for university, it’s time to make one! You could make a weekly or a monthly budget. List all your sources of income and all your expenses then calculate the differences. You can then look at which non-essential expenses you can reduce or eliminate to balance the books.
It’s also a good idea to keep a buffer on hand for any unexpected expenses. Plus, review your budget regularly. Your budget should be a living document, adjusting as your financial situation changes. Regularly review and update it and make any necessary adjustments to stay on track.
Tips for sticking to your budget
Avoid impulse buys: Think twice before buying non-essential items. Try waiting 24 hours before making a purchase to make sure you really want/need it.
Use student discounts: Always ask if there’s a student discount available. Many businesses offer discounts on food, entertainment and tons of other services. Top tip: always keep your student card on you, you never know when it could save you some money.
Plan meals and cook at home: This saves money compared to eating out. Moreover, it’s probably the healthier option (depending on what you cook).
Limit entertainment expenses: Don’t deprive yourself of fun, but look for free or low-cost activities, like uni events, outdoor activities and local community events.
Get advice on how to make a budget for university
These tips should help you take control of your finances and nail your uni budget. But don’t feel like you have to do it alone. At Charles Sturt, we have dedicated support services that can help with all things dollars and cents – from making a budget to applying for scholarships.