When your loan arrives, you might feel you have a lot of money; however, this needs to cover months of rent, food, bills, and everything else university requires.
For most students with SFE, this is paid into your bank account at the start of each term. The easiest way to make it last is to stop thinking of it as one big payment.
Work out what you can spend
As soon as your loan arrives, subtract your unavoidable costs for the term, such as rent, bills, travel, phone contracts and any other fixed payments. What remains is your real spending money. Divide that figure by the number of weeks until your next loan payment to have a weekly budget.
For example, if you have £1,500 left after fixed costs and 12 weeks until your next payment, you have roughly £125 a week to work with.
UCAS recommends building your budget around both your total income and your expected spending, including rent, food, bills, travel and socialising.
Keep your spending money separate
You should keep most of your loan away from your everyday bank account, in an instant access savings account for example. Ensure you have enough for upcoming bills in that account, then transfer a set amount to your current account each week. This makes overspending much harder.
Budget for things you forget
Food and rent are obvious; what you might forget are train tickets home, textbooks, society memberships, and replacing something that breaks. Keep a small amount aside for unexpected costs before calculating your weekly allowance. Even £100–£200 is enough to keep your finances safe.
Remove expenses that add up quietly
Daily meal deals, food delivery, taxis, coffees and unused subscriptions can easily become major expenses over a term. Cooking more often, walking or cycling when you can, and using student discounts will make a noticeable difference. Constantly check for student discounts and use them when you can.
Check your budget during the term
A budget only works if you’re checking it. Once a week, check your banking app and compare what you have spent with what you planned. If you overspend one week, adjust the next few rather than ignoring it until your account is nearly empty.
Free tools such as the MoneyHelper Budget Planner and UCAS Budget Calculator can also help you work out where your money is going.
If the loan isn’t enough
Often careful budgeting won’t solve the problem, because your loan will simply not be enough. If you face a shortfall, the government is expecting your parents to cover it; if they can’t do this, you will need to be resourceful.
Check whether your university provides bursaries, scholarships or hardship funding, and consider part time work if you have spare time. The grants and bursaries are extremely valuable because they typically don’t require repayment.
