How to master your budget as a student

Being a student at a higher education institution can be a fantastic experience, but it’s no secret that finances can be tight.

With the right approach and some clever tips, however, you can navigate through student life without compromising on fun, learning, and great experiences.

In this article, we delve into the art of creating a budget and share some essential tips for living on student finance without spending all your money at once.

Step 1: Know your income and expenses

The first step towards a solid budget is getting a handle on your finances. Start by identifying your monthly income, primarily your student finance (i.e. SU if you apply or a grant/scholarship from your home country) and any income from part-time jobs, student jobs or other sources.

Next, create a list of your fixed expenses such as rent, mobile phone bills, insurance, and transportation costs. Having a clear understanding of where your money comes from and where it goes is crucial to avoid unpleasant surprises.

To avoid unpleasant surprises it is crucial to have a clear understanding of where your money comes from and where it goes on a monthly basis.

It’s also a good idea to determine when during the month you can expect income and expenses, so you can plan by setting money aside or postpone purchases to avoid ending up with a negative balance in your account.

This exercise also provides you with an overview to identify potentially unnecessary expenses. These could include subscriptions you don’t use or transportation that could be made more cost-effective.

Step 2: Create a realistic budget

Once you have an idea of your income and expenses, it’s time to create a structured budget plan.

Divide your expenses into categories like housing, groceries, insurance, transportation, education, and entertainment.

Remember to set aside a small amount for unforeseen expenses – this way, your finances will be in good shape if unexpected events occur. There’s no need to skip the dentist appointment or decline a shared meal with your study group due to a tight budget.

When you are aware of your expenses, it can be advantageous to create a budget account, where you transfer a set 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.

Step 3: Prioritise your education

Okay, your budget is in place! Now comes the most crucial part: prioritize your education. After all, that’s the reason you’re on this adventure!

Make sure you have funds for your textbooks, writing materials, and any other education-related expenses. In the long run, investing in your education will pay off tenfold.

However, you might also be a bit savvy about it. Many first-semester students rush to buy the latest (and most expensive) textbooks and materials.

Check if there are fellow students willing to sell their books.

Explore YouTube for courses or introductory videos related to your field – they can be an excellent supplement to your studies.

And last but not least, use IDA’s free study courses – if the learning curve is steep, you can take them online at your convenience, and you’ll receive a certificate to add to your CV afterward.

Tips for stretching your student finance:

1. Meal planning is key: It may be tempting to dine out or order takeout, but it can quickly eat into your student finance. Create a meal plan and shop once a week. It’s not only economical but also healthier. And yes, it’s a bit cliché to say, but good nutrition is essential for having the energy to excel in your studies. You can also use apps like Too Good to Go, where you can get surplus food for a small fee.
2. Make good use of second-hand items: When it comes to books, furniture, or even clothing, consider buying secondhand. There is a big market for it in Denmark, and second-hand clothing and furniture shops are around almost every corner. Recycling is not only good for your wallet but also for the environment.
3. Share expenses: If you share an apartment with others, consider splitting costs for internet, cleaning supplies, and insurance. If you can commit to cooking together a few times a month, you’ll also have the opportunity to connect with each other and see what’s going on in each other’s lives. It’s a win-win situation for everyone. Should you wish to travel with your roomies, you can get one student travel insurance with IDA Insurance that covers you all. Read more about it at Student insurance.
4. Look out for student discounts and member benefits: Many places offer student discounts on everything from transportation to movie tickets. Explore your options and take full advantage of them. Don´t be afraid to ask, if you don´t see it posted: some businesses don´t advertise it. IDA’s member benefits page offers several discounts and great deals for student members. Did you know that you can get IDAs Home contents insurance for free, while you are a student?
5. Student jobs and freelance: If your class schedule allows it, consider seeking part-time jobs, freelancing, or finding small part-time projects to supplement your income. For many internationals this is a necessity in order to have money in your budget. Just make sure the job and hours don´t compromise your academic performance. You can either prioritize getting a job related to your field of study or opt for something more flexible, so you’re not tied to a specific number of hours per week if you want to focus on your studies. Part-time jobs are important, but you’re on a full-time course, and it can leave more or less time for other activities. Try to find a balance in your finances and weigh pro´s and cons with getting a student related job or simply something that can pay the bills. At IDA Student jobfinder, you can see what jobs are tailored for STEM profiles.
6. Think of minimalism as the sustainable choice: Consider adopting a minimalist lifestyle. Fewer material possessions mean fewer expenses. Think about what you really need before making a purchase. Also take into account how long you will be residing in Denmark, so you don´t go out buying bit items that are hard to sell when you leave.
7. Save on entertainment: It doesn’t mean you have to stop having fun, but focus more on quality than quantity. Find free or affordable entertainment options like picnics, walks, movie and game nights at home with friends. Libraries have games available for borrowing and online movie rentals you can access with just a few clicks per month. There are also countless free podcast series and e-books/audiobooks for when you want to unwind (again, the library is your friend). Plus, you’ll save on time-consuming streaming subscriptions that lead to guilt when you binge-watch series after series as a form of procrastination.

Balance is key

Living on student finance is not just about tightening your belt but finding the right balance between sound finances and quality of life.

It’s perfectly fine to treat yourself to a night out, a good meal, or a pair of stylish shoes now and then, as long as it falls within the confines of your budget.

Remember that this is your journey, and it’s entirely normal to encounter bumps along the way. Learn from your experiences, adjust your budget as needed, and be proud of your ability to juggle student life and financial responsibility.

Once you’ve mastered the art of living on student finance, you’ll be ready for all the exciting challenges that await you during and after your education.