Posted on Wednesday October 30, 2024

How to make a student budget: Tips and tricks for saving money

When you're a student, you've got a thousand and one things on your mind: courses to choose from, exams to prepare, assignments to hand in... And that's not counting the part-time job that often adds to this already imposing load.

Budgeting when your schedule is so hectic is often not a priority. But it should be because a budget is a valuable tool that frees up not only money, but also mental space. It would be a pity to deprive ourselves of this asset to help us succeed in our studies, without the stress associated with uncertainty.

Why draw up a budget?

Learning to draw up a budget while you are still in school pays off, not only at this stage of your life, but also because your expenses are often many and your income is up and down. An annual or quarterly budget will help you reach your financial goals, identify your priorities and plan for the unexpected.

Contrary to popular belief, having a budget gives you more freedom! Knowing your financial goals, income and expenses will help you make informed choices and invest in what matters most to you. 

How to budget during your studies

For your convenience, you can enter all your budget information in this student budget calculator.

Step 1: Set a financial goal

The first step in any good budget is to set a goal! Do you want to finish school debt-free? Buy a new computer? Spend a semester abroad?

Having a clear, precise and measurable objective will enable you to prioritize essential expenses in relation to your income. It can be worth it to make lunches rather than spend money in the cafeteria when you know that a semester in Italy is waiting for you!

Step 2: Calculate your expenses

Expenses come in all shapes and sizes when you are a student. Here are the different types of expenses you need to consider when developing your budget. Calculate the amount associated with each of these expenses over a period of one semester, i.e. 4 months.

Step 3: Calculate your income

There are many potential sources of income available to you. Here is an overview of the sources to take into account when calculating your total income. As with your expenses, calculate your income over one semester, i.e. a 4-month period.

• Net salary: This is your salary after taxes and other deductions. If taxes are not deducted at source, allow for an amount to be paid at tax time. Depending on how often you receive your pay, multiply to cover the duration of your session.
• Savings: Indicate the savings you plan to use for the next session, i.e. the amounts you have accumulated in your chequing and savings account.
• Government loans and bursaries: The government offers loans, bursaries and scholarships to New Brunswick students to help pay for their post-secondary education. Find out more about the financial assistance available.
• Other scholarships: Do you have excellent grades? Are you doing research as part of your studies? Add the other scholarships to your income calculation.
• Government benefits and child support: Add any amounts you expect to use or obtain in the next session, such as an RESP, employment insurance, family allowance, or any other financial assistance you receive.
• Help received and other income: If a relative, friend or grandmother helps you financially, add the amount they pay to your budget.

Step 4: Determine your budget

Now, it's time to calculate your budget! If you have used the Student Budget Calculator, you will automatically see how much money you have available per week, month and year.

Does your budget not balance out? Don't panic! We have a few tips and tricks to help you get it right.

Tips and tricks for better budgeting

Reduce your fixed expenses

Just because they are fixed does not mean you can't change them! Since they are recurring, it is worth analyzing your fixed expenses to identify possible adjustments.

If you're renting an apartment, consider renting it semi-furnished or finding roommates to reduce housing costs. University residences can also be a low-cost option, as well as allowing you to live right on campus!

Telephone and Internet packages often need to be reviewed. Be vigilant and don't hesitate to negotiate! Evaluate the packages of various competitors to find the best price, and bundle all your services with a single provider to get the best rates, where applicable. And make sure you pay your bills on time to avoid penalties.

Finally, insurance is another fixed expense whose amount can be negotiated. Contact at least 3 insurers to get the best rates. Consolidating your services with a single provider is another good practice.

Reduce your variable expenses

When it comes to school supplies, go for used! As compulsory textbooks and books are often only useful for the duration of the course, some students sell the books they no longer need once a course is over. And don't forget your school's library... that is exactly what it is there for!

Meals at home are always more economical! Plan your meals around grocery store discounts, and avoid unexpected expenses caused by last-minute cravings. Above all, resist the urge to have your meals delivered. The cost of this habit, however delicious, is exorbitant.

When it comes to transportation, opt for public transit, active transportation and carpooling whenever possible. You may be surprised at the savings you can make by giving up your car!

Having fun is part of student life, so don't give up on all the activities you enjoy! Go through them and choose the ones that do you the most good. Think about free activities, too. Your student association probably organizes many free events that you could take advantage of.  

When it comes to clothes, avoid impulse purchases, which are not only expensive but often a source of regret. Set yourself a budget and avoid, at all costs, online shopping sprees whose only purpose is to escape boredom. If you are looking for tasteful clothes for less, consider thrift stores. Not only are second-hand clothes cheaper, they are also much more environmentally friendly!

Increase your income

Don't feel like tightening your belt? You can also increase your income to balance your budget.

Many students choose to work part-time during the school year and full-time during the summer. It is a great way to stretch your budget, while gaining work experience that will come in handy when you start your career.

Find out about scholarships offered by your school and government student loans, if you haven’t already.

Student budgeting means peace of mind

A little budget planning ahead of your session will give you the freedom to spend within your means, without worrying about the end of the month. In short, you will be able to concentrate on your studies with peace of mind. It's worth taking a few hours to make your student budget!