Monday 03-03-2025 - 11:45

National Student Money Week 2025 - Blog post 1

The value of drawing up a budget

By Musfira Nasir – Money Mentor

Budgeting is one of the most effective ways to manage your money, reduce financial stress and build a foundation for long-term success. A budget is more than just numbers—it’s a tool that allows you to make the most of your money, prioritise what matters and plan for the future. Creating a budget helps you track your income and expenses, focus on essentials and set realistic goals for savings or paying off debts. By understanding where your money goes, you can make informed decisions, avoid overspending and feel more in control.

For students, financial pressures can feel overwhelming, especially with limited in-come. Drawing up a budget helps you plan your finances and prioritise essentials like rent, bills, food and transportation. Start by listing your income, such as student loans, wages or financial support from family. Next, list all your expenditure. You may want to try and allocate your expenses using the 50/30/20 rule: 50% for essen-tials, 30% for wants, and 20% for savings or debt repayment.

Budgeting doesn’t mean sacrificing your quality of life. Small changes, like cooking meals at home instead of ordering takeaways can save you money while being healthier. Many universities also offer discounted fitness classes, so you can stay active without a costly gym membership. For example, The University of Law offers discounts with PureGym, making it more affordable for students to maintain an ac-tive lifestyle. Look for student discounts, cashback deals and free events to make the most of your budget. Platforms like UNiDAYS and Student Beans provide access to exclusive student discounts on a range of products and services, from clothing and tech to food and entertainment, helping you stretch your budget further.

Tools like budgeting apps make the process even easier. I personally use Monzo, a digital banking app with built-in budgeting tools that allow you to set spending limits, track expenses and create savings pots. When I first started budgeting, I found it easy to list my fixed expenses, but the difficult part was estimating how much I’d spend on unexpected costs like social events or last-minute travel. Over time, I learned to set aside a small buffer for these situations, which made sticking to my budget much easier. By committing to a budget, you can not only survive but thrive—gaining financial confidence and securing a more stable future. Take control today and enjoy peace of mind for whatever comes next.

Musfira is an undergraduate student based at our Bloomsbury campus and is one of the Money & Housing Advice Team’s Money Mentors.
Interested in becoming a Money Mentor in 2025/26? Contact the Money & Housing Advice Team – moneyandhousingadvice@law.ac.uk