How to budget as a student: 5 steps

5 min read

Updated: Oct 2, 2026

Written by

Emily Tye

Reviewed by

Amy Lancashire

To budget as a student, add up the money you'll have for the year, take off your rent and bills, and divide what's left by the number of weeks it has to last. For most students, that's the whole year, not just term time, because your last student finance payment has to see you through the summer.

1. Add up your money for the year

2. Take off your rent and bills

3. Set aside money for costs that don't come every week

4. Divide what's left by the weeks it has to last

5. Move your weekly amount into a separate account

Step 1: Add up your money for the year

Include everything you'll get between your first student finance payment this year and your first one next year:

• Your maintenance loan. For 2026 to 2027, students from England can get up to £10,830 living away from home outside London, £14,135 in London or £9,118 living with parents. Amounts are different in Wales, Scotland and Northern Ireland.

• Grants, bursaries or scholarships from your university.

• Money from family.

• Wages from a part-time job.

Two things catch people out. Your tuition fee loan is paid straight to your university, so it isn't money you can spend. And your maintenance loan isn't meant to cover everything: students are expected to make up the difference from family, work or savings.

Step 2: Take off your rent and bills

Rent is usually your biggest cost, so start with your tenancy agreement or halls contract. 

Check:

• how much you pay, and whether it's monthly or per term

• how many weeks the contract runs, and whether it includes the summer

• whether bills are included

Then add your other regular bills, like your phone, and energy and broadband if they're not in your rent. If everyone you live with is a full-time student, you usually won't pay council tax (see the FAQs below).

Step 3: Set aside money for costs that don't come every week

Some costs only come once or twice a year, like course books, travel home at Christmas and Easter, birthdays and a deposit for next year's house. Add them up and take them off your total, the same way as in our step-by-step guide to making a budget.

Step 4: Divide what's left by the weeks it has to last

For most students, your money has to last about 52 weeks, from your first payment this year to your first payment next year. That's because student finance covers the break between academic years, including the summer. Dividing by the weeks of term alone leaves you with nothing for the summer holidays.

When is student finance paid?

If you're funded by Student Finance England, Wales or Northern Ireland, your maintenance loan is paid at the start of each term, usually in 3 instalments. Term dates vary, but it usually looks like this:

If you're funded by SAAS in Scotland and your course lasts more than a year, you can choose to have your payments spread over 12 months instead of term time only.

Why your spring payment has to last the longest

If you're paid in 3 instalments, your third payment arrives at the start of the summer term but has to last until next autumn, the longest stretch of the year. If you spend each payment across its own term, you'll run short in the summer. If you'll be working or living at home over the summer, you might need less for those weeks. Plan for that on purpose.

Step 5: Move your weekly amount into a separate account

Keep your loan in one account for rent and bills. Each week, move that week's amount into a second account or savings pot and only spend from that. When the pot's empty, you've spent that week's budget.

This matters most on the day your loan arrives. In our payday research, 38% of 18 to 24-year-olds said they often spend on impulse within hours of being paid, and a loan payment is several months' money landing at once.

What does a student budget look like?

Here's an example for a student in halls with bills included. The figures are made up to show how the steps fit together.

£75 a week has to cover food, travel, going out and everything else, including over the summer. Divided by 30 weeks of term instead, it would be £131 a week, with nothing left by the summer.

Which student costs can I cut?

• Train travel: a 16-25 Railcard costs £35 a year and gets you 1/3 off most rail fares in England, Scotland and Wales. Mature students can get one too. In Northern Ireland, a yLink card gets 16 to 23 year olds discounted Translink bus and rail fares

• Course books: check your library and reading list before you buy anything

• Food: plan your meals for the week and shop with a list

• Subscriptions: check your statements for anything you signed up to in freshers' week and no longer use

What if my money runs out before my next payment?

• Ask your university for help. You may be able to get a bursary, scholarship or hardship fund, which you don't usually need to pay back. Your student support or money advice team can tell you what's available

• Check your loan is right. If you're funded by Student Finance England and your household income has dropped by 15% or more since the tax year they used, you can ask for your current income to be assessed instead, which could increase your loan

• Be careful with overdrafts. An arranged overdraft can cover a short gap, but it's borrowing you'll need to pay back. Check what it'll cost you and how an overdraft can affect your credit score

• Get free advice if you're falling behind. Your university's advice team or StepChange (0800 138 1111) can help for free. Our guide on how to get out of debt explains which debts to deal with first

FAQs

There are a range of financial products available that may suit your needs. We encourage you to research your options carefully and consider seeking independent financial advice before making any decisions. This blog is for informational purposes only and does not constitute financial advice.