How to Make the Most of Your Student Budget: A Comprehensive Guide

You've received your acceptance letter from university, which is incredible! However, let's address the elephant in the room: figuring out your living expenses in the UK is a bit of a financial challenge. Wondering how much to budget for rent, bills, and groceries?

We’re here  to guide you through the process of budgeting as a student living in the UK, whether you're eyeing student housing in London or Glasgow. Our goal is to enable you to devote more attention to your studies and less to financial concerns.

Rent

Figuring out the expenses for student housing can be complex, with rent typically being the largest portion of your budget.

What to Calculate

• Monthly Rent

• Security Deposit

• Possible Agency Fees

How to Calculate

• Identify the base monthly rent.

• Add any mandatory fees like service charges or building maintenance fees.

• Factor in a one-time security deposit, usually equivalent to a month's rent, and divide it by the number of months you'll be staying to get a monthly average.

Approximate budget (1 month)

• £600-£1200, depending on the city and type of accommodation.

Budgeting Tips

• Always read the fine print of your rental agreement to identify any hidden fees.

• Consider locations slightly farther from campus to find lower rent options.

• Try negotiating the rent with your landlord, especially if you're committing to a longer stay.

Utilities

Once you have your rent figured out, the subsequent significant expenses usually include utilities such as electricity, water, and internet.

What to Calculate

• Electricity Bill

• Water Bill

• Internet and Cable

How to Calculate

• Research average utility costs in your area or ask neighbours for insights.

• Check if any utilities are included in your rent, as this will reduce separate costs.

• Add up the separate utility bills to get a monthly total.

Approximate budget (1 month)

• £100-£200, depending on usage and whether some utilities are included in the rent.

Budgeting Tips

• Choose appliances with high energy efficiency ratings to reduce electricity bills. For example, an A+++ rated fridge can save up to £320 in energy costs over its 10-year lifetime compared to an A+ model.

• Minimize water consumption by taking shorter showers and promptly repairing any leaks.

• Look into bundling your internet and cable services. Many UK providers like BT and Sky offer bundles that can save you up to 20% compared to separate services.

Here are some other useful ways to save energy as a student. 

Groceries

Groceries are a vital yet adaptable aspect of your budget. With thoughtful planning, you can eat healthily without spending too much.

What to Calculate

• Fresh Produce

• Staple Foods (rice, pasta, bread)

• Snacks and Beverages

How to Calculate

• Write down the foods you regularly eat and their average prices. For instance, the average cost of a loaf of bread in the UK is around £1.10.

• Include occasional purchases in your list, like specialty cheeses or seasonal fruits, and work out their average monthly cost.

• Add these figures together to estimate your monthly grocery spending. 

Approximate budget (1 month)

• £150-£300, depending on your dietary needs and choices.

Budgeting Tips

• Use platforms like amber+ and TOTUM,  which offer a wide range of discounts and cashback options for students.

• Consider purchasing non-perishable items in bulk to save money over time. In the UK, stores like Costco and Makro offer bulk buying options where you can save, on average, about 10-15%.

• Planning your meals can significantly reduce both impulse purchases and food waste. In the UK, it's estimated that an average household wastes £700 worth of food each year. 

• Shop at the cheapest supermarkets to make your money go further.

Transportation

Transportation costs can differ greatly based on where you live and your preferred mode of transport, making it crucial to include in your budget to prevent unforeseen costs.

What to Calculate

• Public Transport Tickets

• Fuel Costs for Personal Vehicle

• Occasional Taxi or Ride-Share Expenses

How to Calculate

• Assess how often and what type of public transport you'll use. For example, a monthly bus pass in Manchester costs around £58.

• If you're driving, calculate your average fuel costs and maintenance. In the UK, the average cost of petrol is around £1.28 per litre as of late 2023.

• Factor in occasional travel methods like taxis or Uber, which in cities like London can cost £15-£25 for a moderate distance.

Approximate budget (1 month)

• £50-£150, factoring in whether you'll be using public transport or a personal vehicle and the frequency of travel.

Budgeting Tips

• Explore student discounts for public transport. Many UK cities offer discounted passes for students, like the 18+ Student Oyster photocard in London, which gives 30% off travel cards.

• Use cycling or walking for short distances. Many UK cities have dedicated cycling lanes, and it's a cost-effective and healthy choice.

• Share rides with friends or classmates when possible. Carpooling can significantly cut down on fuel expenses, especially for longer journeys.

Budgeting for student accommodation in the UK involves more than just covering the rent. By understanding what to calculate, knowing how to calculate it, and having a reasonable estimate for each category, you're well on your way to financial stability during your student life.

How can amber help you?

amber student accommodation helps you secure accommodation of choice on your study abroad journey. Having served 80 million students (and counting), amber is your one-stop shop for all your accommodation needs, with great choices for student housing. Check out their Facebook and Instagram to stay updated!