Your annual budget
If you have not already done so, estimate your annual budget by listing all your expected income, including any savings you will bring with you to university. See how this compares with your anticipated expenditure in the hope that the balance sheet almost balances or, better still, that you are left with spare cash in the bank for doing what you've always wanted to do!

However, budgeting accurately is never an easy process, and we have constructed this simple but realistic annual income and expenditure summary to make monitoring and controlling your finances easier. This is a budget for non-smokers and assumes the latest findings of an average weekly spend of £27 on food and £18 on drink. For the quarter of you who smoke, an additional outlay of almost £20 would be needed – is it worth it?

It can be difficult to predict accurately some variable expenses such as entertainment. Start by identifying bills which must be paid and include in this a small contingency fund. This will leave you with the 'flexible' part of your income to take weekly from the bank. Don't be too optimistic in your first budget, and do be aware of how much you actually spend (try writing down everything you spend over a week or so). Budget for university gigs and balls, birthdays and parties, or you may find yourself missing out on the best social events of the year. If there is a big gap between planned budget and actual expenditure, perhaps your spending habits need attention rather than your budgeting. Above all, remember to keep a check on your finances so that money worries do not detract from your studying and from enjoying university life. Clearly, your patterns of expenditure will differ significantly between term-time and vacations and you will need to allow for this. Back to top >

A sample budget for 2009 entrants

In this example, we have assumed that you are studying in England (other than London), you are not living at home, you have taken out a tuition fee loan to cover tuition fees of £3,225, you are in receipt of the maximum maintenance grant/loan of £4,745 and minimum standard bursary of £319 (see table Financial support & family income for a summary). The deficit of £261 is in addition to the two loans from the Student Loans Company which will be carried forward as a debt to be repaid after you graduate.

+ From 2010 the maximum tuition fee level will increase to £3,290.

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Survival tips!

• Take out your maximum student loans, if only to invest some of it elsewhere.
• Check what grants and bursaries are available to you.
• Sign on with the bank which offers the best long-term benefits.
• Find a part-time job and be paid gross if not liable for tax.
• Make the most of any student discounts.
• Get to know how to use the library at the earliest opportunity.
• Use the internet to buy and sell on secure sites.
• Opt for the best value telephone landline provider.
• Keep an eye open for the best mobile package.
• Buy essential books and equipment second-hand.
• Shop in local markets, charity shops and the students' union.
• Be careful with heating and lighting.
• Try and buy in bulk if living in a student house.
• Share to save whenever you can, particularly on transport.
• Walk or cycle during the day rather than take public transport.
• Check to see if your belongings can be covered by your family insurance.
• Try drawing up a weekly budget and sticking to it. Back to top >

More on managing your money . . .

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