Thrifty with Finances: How to Manage Your First Student Loan

Create a realistic budget

Before spending anything, work out what you actually need. A good starting point is listing essential costs such as rent, food, transport, textbooks, bills and subscriptions and any other necessary costs. Once these are covered, you’ll have an idea of how much money is available for non-essential spending.

Separate ‘needs’ and ‘wants’

Student life can come with tempting opportunities to spend up: nights out, new clothes, takeaways, social events. Enjoying student life is part of the experience, but it’s helpful to recognise the difference between things you need and things you want. Try and give yourself a budget/limit for social activities to avoid losing control of your spending. There are tons of free things to do in Leeds and in halls!

Avoid spending up quickly

A common mistake is treating the loan like an ‘extra income’, it’s important to remember that it’s designed to last across the term and spending all at once can leave you struggling later if other expenses come up. 

Focus on building good habits

Managing a student loan is a good opportunity to develop money handling skills that will help you long after you graduate. Tracking spending, regularly checking your balance and avoiding unnecessary spending will all help in future. Other small habits include cooking at home where possible, comparing prices, saving as much as you can and budgeting your weekly spend. Small habits can make a big difference!

Ask for support when you need it