How do I plan a budget?

Knowing how much money you have coming in and going out will help you avoid overspending.

How much money do you have coming in?

Add up the all the money you receive, including your loan/grant and any money you get from your parents.

You might want to budget just for the 40 weeks of the academic year. If so, divide your annual loan/grant by 52, then multiply it by 40 and you'll have your weekly amount.

How much money do you have going out?

Look at how much of your money goes on essentials such as rent, food and household bills. Then make a note of what you spend on things like travel, books, clothes, laundry and socialising.

If you can't see where all your money is going, try keeping a diary of everything you spend, noting every item and the cost.

How much is left over?

Once you know how much money you have coming in and going out, work out the difference. If you're spending more than you have coming in, it's time to make some tough decisions.

Perhaps you need to cut down on your socialising, for example? Or maybe it's time to get a part-time job if you don't already have one.

What does a sample budget look like?

Our sample budget for a first year student (2012/13) might help you work out how to balance your money:

Incoming money (40 weeks) Outgoing money (40 weeks)
Tuition fee loan £8,500 Tuition fees £8,500
Maintenance loan £6,792 Accommodation (£120/week) £4,800
Maintenance grant £3,250 Household bills (£20/week) £800
Part-time work (£40/week) £1,600 Food and housekeeping £2,400
    Laundry £200
Telephone £500
Books and equipment £600
Travel (bus pass) £500
Visits home £300
Entertainment £1,200
Total: £20,142 Total: £19,800

We've got an app for that!

If you have an iPhone or iPod Touch, there are two handy free apps you can download from the App Store that will help you keep track of your spending:

If you have another WAP-enabled phone, Spendometer is also available.