On a budget

How to master your budget as a student

Kvinde står i køkkenet og kigger ind i kameraet
Read our 3 steps to get an overview of your finances and create a sensible budget. And get 7 additional tips on how to stretch your student grant. As a student in higher education, finances can be tight. With the right approach to your food budget, disposable income, variable expenses, etc., you can navigate through student life without financial worries for your personal finances. In this article, we delve into the art of making a budget. This way, you can avoid the situation where you have spent all your money before the month is halfway through.

Table of contents

  • Step 1: Know your income and expenses
  • Budget for students: Join an unemployment insurance fund and a trade union
  • Step 2: Create a realistic budget plan
  • Download budget template
  • Step 3: Prioritise your education
  • It is possible to take a student loan
  • Moving out? Tips to stretch your student grant
  • Balance is key when spending money

Step 1: Know your income and expenses

The first step towards a solid budget is to keep track of your finances. Start by identifying your monthly income, primarily your student grant and any income from part-time jobs, scholarships, or other sources. It is completely normal to have less money as a student – students generally do not earn much and do not build up the largest savings. Therefore, your student grant budget will depend more on your fixed and variable expenses than on your primary income source and other incomes.

With an overview of your fixed expenses such as rent, mobile bill, insurance, and transportation costs, you get an idea of how many expenses you have. Once the rent and other expenses are paid, you have the most important things covered.

Having a clear understanding of where your money comes from and where it goes is crucial to avoid unpleasant surprises. It is also a good idea to find out when in the month you can expect income and expenses, so you can plan to set aside money or wait to buy something, so you do not suddenly find yourself with a negative balance.

This exercise gives different students an overview of whether there might be inappropriate items in their finances. As a student, budgeting does not have to be complicated. Start by reviewing subscriptions you do not use or transportation that can be made cheaper.

Budget for students: Join an unemployment insurance fund and a trade union

In a student budget, it costs only minimally to secure yourself. There is no reason to skimp on insurance, unemployment insurance fund, and trade union. You have probably heard about our free home insurance. It counts as 0 DKK in your student grant budget.

It is also free to become a member of the Academics Unemployment Insurance Fund while you are a student – this entitles you to unemployment benefits right after your studies, and it costs you nothing during your study period. Your membership in the IDA Trade Union is also free for the first year, after which memberships cost 20 DKK per month.
energinet banner med seks personer i forskellige arbejdsfunktioner delt op i seks kasser med forskellig grøn baggrund energinet banner med seks personer i forskellige arbejdsfunktioner delt op i seks kasser med forskellig grøn baggrund

Step 2: Create a realistic budget plan

When you have moved out and have a clear overview of your income and expenses, it is time to create a structured budget plan.

The budget should be divided into categories such as housing, food, insurance, transport, education, and entertainment. Allocate a small amount for unforeseen expenses in the budget – this ensures financial peace of mind if life takes an unexpected turn.

This way, you won’t suddenly find yourself in a situation where you have to choose between skipping anesthesia at the dentist or declining a communal dinner with your study group due to tight finances.

When you know your expenses, it is beneficial to create a budget account where you transfer an amount for your fixed expenses. This way, you won’t be lulled into a false sense of security about how much money you actually have available throughout the month.

Download our budget template to see an example of a budget and create your own based on the template. Our budget template is based on a student from Aarhus studying at Aarhus University. Income such as housing support and expenses for rent, personal care, etc., are included to make the template as relatable as possible.

Budgetplanlægning skabelon Budgetplanlægning skabelon

 

Download budget template here

Download our budget template to see an example of a budget and create your own based on the template.

Our budget template is based on a student from Aarhus studying at Aarhus University. Income such as housing support and expenses for rent, personal care, etc., are included to make the template as relatable as possible.

Step 3: Prioritise your education

OK, you have now got the budget in place! Now comes the most important part: Prioritise your education.

After all, it is the reason you are on this adventure! Make sure to have funds for your books, writing tools, and any other education-related expenses. In the long run, the investment in your education will pay off a hundred times over, and your life will look completely different in a good way. So don’t worry. The money will come. You will find that your monthly income will increase significantly in the future.

However, remember to be a bit clever and find out where you can cut corners. Many have fallen into the trap in the first semester and bought the newest (and most expensive) study books and materials.

Check if there is a student who wants to sell their books. Check YouTube or other learning platforms for courses or introductory videos in your field – they can be a great supplement to your classes.

And last but not least; use IDA’s free study courses – if the learning curve is too steep, you have the option to take them online, whenever and wherever you want. And you get a certificate to add to your CV afterwards.

It is possible to take a student loan

Of course, you receive your student grant, and it probably covers the most important expenses. However, if you find yourself in a situation where you cannot spend money on anything beyond your tight budget, you are not alone. There is a big difference in how demanding studies are within STEM fields, and this can make a potential part-time job impossible.

Your monthly budget can therefore receive a significant capital injection by taking a student loan. This way, you can still afford leisure activities, various subscriptions, etc., during your study period. Read more below.
Personer sidder i en park med studiebøger Personer sidder i en park med studiebøger

Moving out? Tips to stretch your student grant

Balance is key when spending money

Living on a student grant is not just about tightening the belt, but about finding the right balance between sensible finances and quality of life.

It is perfectly okay to treat yourself to a night out, a good meal, or a pair of nice shoes once in a while, as long as it happens within the limits your budget allows.

Remember, this is your journey, and it is completely normal to encounter bumps along the way.

Learn from your experiences, adjust your budget continuously, and be proud of your ability to juggle student life and financial responsibility.

Once you have mastered the art of living on a student grant, you will be ready for all the exciting challenges that await you both during and after your education.

Related

We hope you have gained insight into living on a budget as a student. Below you will find related content concerning your finances as a student.
Funds and grants: A guide for university students
Student grants and part-time jobs are not the only options for managing your finances; funds and scholarships are a great opportunity for a helping hand to your budget as a student.
From student grant to full-time salary – A guide to budgeting and saving
Many students can add an extra zero to their monthly income when they transition from a student grant to full-time work. But how do you create a proper budget and savings plan?

Experiences don’t have to cost a fortune

As a student member of IDA, you can participate in many professional and social events – everything from wine tastings to lectures. Our events are either free or come with a significant discount because you are a member.

You can also get free career advice that helps you with student jobs and career guidance.