It’s all about the money

You’re at university now – away from home, possibly for the first time, meeting new friends and enjoying a new social scene, but being a student also means learning how to manage your money. The good news is that you don’t have to be an accountant to control your finances. This guide will give you useful tips to learn how to plan and control your spending, and save where you can.

Budgeting
Being a student can be stressful at times, (especially around exam time!); and finding an effective strategy to manage your finances will give you one less thing to worry about and hopefully keep your stress levels down. Money is a big issue for all students, and planning your budget in advance may help you avoid getting into financial difficulties. If you learn now to set up a budget and live according to it, it will be easier to develop a financial plan when you start work.

Budgeting is a personal matter, and it is important to find a system that works for you. The basic idea behind budgeting is that your expenditure (what you spend) should not be more than your income. Buy a notebook in which to plan your budget, and to record your spending. Include the following:

Income
Start by estimating your annual income. You may receive money from the following sources:

•    Bursaries
•    Scholarships
•    Financial aid
•    Part-time and vacation work
•    Family contributions
•    Student loan
•    Savings

Then break down the total into a monthly amount available to you, since it is easier to calculate the paying of bills in monthly amounts. If you return home for the holidays, take this into account – you may not need to pay accommodation fees for this period, and your family may cover food costs during this time, if this is so then the average academic year is 9 months.

Expenditure
First calculate the amount of money you will need to spend on bills monthly. These may include:

•    University fees
•    Accommodation fees
•    Municipality bills – electricity, water and rates (if-applicable)
•    Medical Expenses
•    Travel — to and from university, and to and from home for
the holidays
•    Car costs (if you have one} – petrol, tax. insurance Childcare (if
you have dependents)

These items may be seen as essentials, but the following costs will also need to be calculated.  These items can be budgeted for according to the amount of income that you have left after paying the non-negotiables.
•    Food
•    Laundry
•    Cell phone / telephone calls
•    Clothes / shoes
•    Hair
•    Toiletries
•    Books / Photocopies
•    Stationary
•    Leisure activities

Most students find it easier to work out a weekly budget in terms of what they have to spend on food, telephone calls and entertainment etc. After subtracting the essential bills from your total monthly income, assess what is left for the month.

Divide this remaining money into portions to be spent on the above Items, and then divide the month into 4 or 5 weeks (depending on the month). Some students may prefer to spend money on a visit to the hairdresser than on a night out in a club. Some students may prefer to go without new clothes so they can spend a bit more on food. Work out what your priorities are and allocate money accordingly. Remember that eating a healthy balanced diet is essential for your brain to function well, which is the reason that you are at university—to develop your brain.

Find the rest of this Essential Guide at any of our Student Counselling Offices.