Whether you’re attending university for the first time, or returning to study for a PhD, you’re at the start of an exciting journey. But with a cost of living crisis underway and inflation figures constantly hitting the headlines, it’s no secret that learning how to save money as a student has become more important than ever.
In this blog post, we’ll explore how you can navigate student life without sacrificing either your financial well-being or your university experience. These smart strategies will help you achieve financial stability and build a solid foundation for your future. You can also read my full post on why having some savings could help your career.
So, let’s dive in and discover the secrets of savvy saving!
Track Expenses and Create a Budget
First things first: let’s talk budgeting. It might not sound exciting but it can be a game-changer. After all, to be able to save money you first need to know where that cash is going.
To help you do this I’ve made a budgeting spreadsheet. You can use it to understand your total outgoings each month and get to grips with what you’re spending money on.
Access a copy from one of the links below and then we’ll walk through how to fill it in.
- Downloadable Excel version
- Google Sheets version – slightly better functionality but requires a Google account
Already mapped out your spending or would prefer to return to this exercise at a late stage? Click here to skip to some practical ways to cut costs as a student.
1) Start by listing income sources
Starting on the ‘Current Expenses’ tab add up all of your sources of income. These could include your student loan, grants/ stipends and any part-time work. This will give you an overview of what money you have coming in.
Use a timescale that makes sense around your income sources. For instance if you get paid monthly then a monthly budget is sensible, if you receive money every semester / term then either run the budget for that period of time or work out the monthly equivalent.
2) Next, track your expenses
Feel free to amend the categories to whatever makes sense for you, but be sure to include everything that you spend money on.
In order to know how much you’re spending you have two options:
- Manual Review – Manually look through your bank statements and categorise your spending. To reduce anomalies I’d suggest looking over a three month period to get a good sense of your average spending per month.
- Automated Review – Budgeting apps such as Emma use Open Banking technology to pull in your banking transaction history and categorise your spending. Some bank accounts also have this feature (such as Monzo and Starling). This provides a fast-tracked way to understand your spending,
Regardless of which option you choose, be sure to factor in a proportion of any charges that occur irregularly.
3) Review your spending
Once everything has been listed out it’s time to look over your spreadsheet.
As a starting point you’re going to want to make sure that your expenses are lower than your income. Beyond that you may wish to try and increase the amount you have leftover each month.
I actually did this exercise myself back in September 2019, when I was a PhD student living in London, and you can find the overview of my results here.
If you’re keen to increase your savings there are two ways you can do so:
- Increase your income. Check out my previous post about the top ways to make money as a student.
- Reduce your spending. Which is what I’ll be covering later in this post.
4) Create your budget
Use the ‘New Budget’ tab on the spreadsheet to play around with your figures. Experiment with where you may be able to cut costs and see the impact it could have on your savings. For example you may typically spend £100 on clothes each month and decide to cut it down to £50.
As and when temptations occur, review your budget to see if you have the funds.
TOP TIP: Simplify things with smart banking
Several banks now offer smart features to help you to keep track of your spending. I bank with Monzo and they allow you to set a monthly spending budget. You can even choose how much you can to spend on different categories (such as eating out, transport, entertainment etc).
I also really like saving pot features. These allow you to separate money from your main account and you can even set up standing orders to automatically transfer money into specific pots. This can be particularly handy for setting up a ‘fun budget’ or building up funds towards a large purchase such as a holiday. Check if your bank offers similar features.
5) Review progress
Monitoring your financial situation on a regular basis can give you a much better handle on your spending habits and help you to track your progress over time.
Personally I find it helpful to make a note of my total savings every month. Seeing the values go up can be a good source of motivation for any saving goals.
Interested in another post about putting your savings to use through things such as investing? I’m not sure if many people are interested in this stuff, so let me know if you are!
Building a Savings Habit
It may seem strange to try and build up savings while you’re a student. I’d agree that your income likely isn’t particular high and that it is more important to make the most of opportunities and enjoy your student experience.
However, I strongly believe that saving money involves building a positive habit, and that can start when you’re a student. Rather than letting your bank account run dry every month, even saving a very modest amount, such as £10 a month, shows discipline and will help to build the habit.
Start with a small amount which should be easily achievable. Then, once you’ve graduated and your income levels start to increase you’ll be a great position to start building a positive financial future for yourself.
We’ll now discuss some practical ways for how to save money as a student.
Ideas for How to Save Money as a Student
Optimise Spending on Housing
When it comes to saving money as a student, housing expenses will usually have the biggest impact on your budget. But there are a few ways you can cut costs here too.
Saving on Rent
For those going to university close to home consider whether it could be possible to live with family.
If you’re set on finding your own place, start by considering which neighbourhood to pick. Those further away from campus, or in less glamorous areas, generally have more affordable housing options.
Do you have future housemates who are set on living in a particular area? Many houses, at least in the UK, have a ‘box room’ which is a substantially smaller bedroom than the rest. If you’d be happy to have it, negotiate with your housemates so that they pay slightly more for their rooms and you pay slightly less. I did this myself during my undergrad.
Agreeing on housing can sometimes be tricky, with everyone’s budgets and expectations varying, so be sure to discuss these upfront. You may also find it easier to take the lead on looking for suitable properties so that options aren’t brought up which are out of your price range.
If you’re an undergraduate student make sure to find accommodation that aligns with your term dates. There’s no point in paying for somewhere over the summer if nobody’s going to be there.
Considering living alone? If you are a mature student or in a couple this can be particularly appealing, but is often a LOT more expensive compared to living in a house-share. It can still be possible to live in a house-share as a couple and the cheapest way to do so is by sharing a room. My girlfriend and I did this in London for a couple of years during my PhD and really enjoyed it, but it certainly isn’t for everyone. For more on this check out my post about London housing experiences.
Saving on Council Tax
Finally, make sure you’re up to speed on the rules around Council Tax in the UK. If you only live with students you will be exempt from paying. However if you’re sharing with non-students then council tax must be paid on the property and your housemates may expect you to contribute.
Use Student Discounts
As a student looking to save money, taking advantage of student discounts is a no brainer. And you may be surprised at how many restaurants, cinemas, shops and local businesses offer discounts for students.
So get into the habit of checking before you pay!
For those working towards a PhD you’ll be happy to know that you count as a student too, so go ahead and make the most of those discounts!
These savings may seem small individually, but they can accumulate over time and make a noticeable difference.
In the UK your university’s student card will often suffice for getting discounts locally, but for access to additional discounts I’d suggest looking into the following:
- Unidays – they typically offer 10-15% discounts and you just need an academic e-mail address to be able to access them
- TOTUM (formerly NUS extra) – this saves money on lots of shops online, but check if you’ll make use of it first before buying one
- Student Beans – another one which is free to sign up to and well worth a look
Get Thrifty and Shop Second-Hand
As a student on a mission to save money, second-hand purchases can be a life-saver.
Instead of buying brand new clothes, textbooks, or gadgets, explore second-hand options on marketplaces like Vinted, Depop, Gumtree, eBay, or out and about in charity shops or clothes swaps.
For textbooks, universities often have used book sales which can be a brilliant way to pick up some bargains.
Also consider if you need to own an item permanently for it to meet your needs. Sharing resources with fellow students or borrowing items temporarily can also be a clever way to help you save money. Who said being resourceful couldn’t be fun?
Buying things second-hand is one of my absolute favourite ways to save money, so much so that I furnished most of my house using second hand furniture. The best thing about it is that if you resell your item in future, you will probably make most all of your money back! On a couple of occasions I’ve even made a profit!
Cook at Home and Plan Your Meals
In my opinion, the number one most effective way to save money as a student is to look at what you’re spending on food. I really believe that most people overlook how expensive it can be to regularly buy your meals out and about. Even buying lunches can quickly get expensive.
Plan your food for the week in advance, always making sure to have a list prepared for when you go shopping. If you have the space, cooking in larger quantities and freezing leftovers can provide you with convenient and cost-effective meals for when things get busy.
Back in 2020 I wrote a whole series about cooking nutritious food on a budget, so if this is something you’re keen to look into you may find it helpful.
- Part 1: Introduction to cooking delicious, nutritious meals on a budget
- Part 2: My simple method for creating cheap and healthy meals
- Part 3: Example meals
One key area to tackle are takeaways. They’re convenient, but the costs can mount up quickly and buying them can easily turn into a habit. Typically order pizza after a night out? Make sure to have one in the freezer instead.
During my PhD I think I easily saved £250 or more a month by cooking lunches and dinners myself compared to regularly buying them like many of my lab mates. That’s not to say I never went out for dinner, the point is that the cumulative effect of spending £5 (or more!) on lunch every day and regularly getting takeaways adds up way more quickly that you might expect.
My top tip is to always double the portion when you cook dinner and then you’ve got a lunch made for no extra effort!
Utilise University Resources
As a student, you have access to a wide range of university resources that can help you save money. Make sure to take advantage of them!
Head to the library for textbooks, research materials, or even some fun fiction reading (this one is a great break from work). Why spend a fortune on books when you can borrow them for free?
And don’t forget about those free or discounted gym memberships some universities offer. Stay fit and save money? Yes, please!
Also be sure to check out what clubs are available at your university, as many offer discounted ways to try out new skills. At Imperial I did a subsidised scuba-diving course and also got to try out gliding very inexpensively. Before that, at Warwick I ran the photography club and we had loads of cameras and equipment that our members could access throughout the year for just a few pounds. It’s important to make the most of opportunities while you’re at university, so if there’s anything you’re interested in trying out, now’s the time to do so.
Embrace Public Transport and Cycling
The cost of owning a car can add up quickly, so consider if it’s possible to ditch your car in favour of public transport or cycling. Not only will this help you to save money, it will also reduce your environmental impact.
Studying in central London, I initially hadn’t seriously considered commuting by bike. I was too afraid of getting squashed! Then I saw that the council were funding an amazing course where you’d get training on road safety, how to maintain and use your bike plus a… FREE BIKE.
After getting my bike I used it nearly every day and very rarely went on the tube. This helped me to save about £90 a month on my commute, all whilst getting some free exercise and breathing in less dirty air. Sadly the course I went on is no longer offered, but for those who are in London it’s worth seeing if there are any free cycle skills courses available in your borough.
For more on my experience of learning to cycle in London check out my post here.
Even if you use public transport, make sure to look for student fares and do the maths to see if it makes sense to buy a week, month or season ticket to reduce the costs.
Reduce Spending on Entertainment
Being a student doesn’t mean you have to miss out on fun, you just need to be savvy about it.
Drinking alcohol? Buying some from a shop will always be much cheaper than at a restaurant, bar or club, hence why pre-drinking with friends before going out can make a lot of sense.
Look for free or low-cost entertainment options in your area, such as community events, concerts, art exhibitions, or film screenings. As mentioned above, joining student clubs can also provide inexpensive ways to have fun and they’re a great way to meet new people too.
Save on Bills
Saving money as a student extends to your bills too. For example…
Broadband
If you’re an undergraduate student make sure to get a broadband package that suits your needs. You can often sign up to packages for less than a year, so you don’t need to pay a cancellation charge when you leave.
Joining an existing house-share? Be proactive about looking into what broadband package you’re on. These often have one year deals to lure in customers and the bills can be more than double afterwards. If yours comes with a TV package this can end up being particularly pricey.
I remember when I was living in London some housemates had never bothered to change the broadband package, so it unnecessarily included TV channels no one was interested in but the price was not at all competitive. It doesn’t take long to shop around for a deal which can save you all money for the year!
Mobile Phone
While you’re looking into contracts, consider your mobile phone bill too. As with broadband deals, these can often increase over time, so it’s worth seeing what else is available so you’re not paying over the odds.
Energy
Be mindful of your energy consumption. Dry washing on a line or airer and turn off lights when you leave the room. You can also lower the thermostat if you’re away from the property, however don’t drop it below around 10 degrees C or you may have issues with pipes freezing.
For those in the UK my go-to place to check on deals is MoneySavingExpert.com – no this isn’t sponsored, I just find the website incredibly useful!
Build an Emergency Budget
To stay financially secure as a student, it’s crucial to have a plan in place for emergencies and unexpected expenses.
Build an emergency fund by setting up a standing order to automatically move a small portion of money each month. It’s best to keep this separate from your main current account if possible to avoid any risk of dipping into it by accident. This is another instance where using a saving pot can be very helpful.
Having a financial safety net will provide peace of mind should anything unexpected arise, such as needing to pay a new housing deposit while you’re still waiting for the last one to be returned.
Summary: How to Save Money as a Student
To wrap it all up, here’s a quick overview of my key tips on how to save money as a student:
- Create a budget and track expenses to stay on top of your finances
- Use smart banking to set budgets for your spending and build up funds in ‘saving pots’
- Start a habit of saving money
- Optimise housing expenses by house-sharing and make sure to factor in council tax when planning who to live with
- Use student discounts whenever possible for extra savings
- Shop second-hand for the best bargains
- Cook at home and bulk make meals to save money on food
- Utilise university resources like libraries and discounted gym memberships to access valuable services without breaking the bank
- Embrace public transport and cycling as cost-effective ways to get around
- Minimise entertainment expenses by seeking out free or low-cost options
- Save on utilities by practicing energy-saving habits
- Plan for unexpected expenses by building an emergency fund
By following these suggestions on how to save money as a student, you’ll be able to navigate university with financial confidence and peace of mind.
Happy saving!
Do your have any other favourite tips for how to save money as a student?
Share them in the comments below!
