Students regret not budgeting - how to avoid overspending at uni

As a new intake of students gears up for university, current students have revealed the lessons they’ve learned the hard way - and many revolve around money.

According to Nationwide research, one in five students (20%) regret not budgeting, and a similar number (18%) wish they hadn’t overspent on nights out.

Meanwhile, 17% say they regret relying too much on overdrafts or credit.

Money causes friction among housemates

It’s not just spending too much or living beyond your means that’s causing problems for young people.

One in five (20%) current students said their housemates had fallen out because of cash splurges.

And almost a fifth (19%) said housemates had fallen out over owing each other money.

Of course, money won’t be the only cause of arguments when you’re living with housemates for the first time.

For example, many have had issues with noise (26%), food being stolen or used up (24%) and tidying up (22%).

But it’s clear that setting expectations about money from the start could help you avoid - or at least reduce - tension in your student housing.

Four ways to avoid financial regrets at university

So if you're starting uni this year, how can you avoid making the same mistakes?

1. Set a budget and stick to it

Yes, it’s easy to get carried away in Freshers’ Week and when your student loan lands in your account.

But you don’t want to get to the end of each month short of money and needing your parents to bail you out.

So plan ahead by adding up your expected income, from your student loan and grants to any money you’re earning from a part-time job.

Then take away essential expenses like rent, groceries, travel and utility bills.

The amount left is what you have available for everything else, like nights out, and you can then break it down into weekly or daily amounts.

If you know your limits and stick to them, you won’t end up spending more than you can afford.

Find out more in our guide to how to create a budget.

2. Don’t blow all your money on a night out

If you and your mates are set for a big night out, decide how much you’re comfortable spending and look at where you could avoid spending too much.

For example, could you walk or get a bus home instead of forking out for a taxi?

Could you have some food waiting for you in the fridge so you don’t need to buy a takeaway at the end of the night?

Just a few small changes could add up to big savings without affecting your night out.

And remember, you don't have to say yes to everything. 

If you can’t afford to go out, then it’s okay to miss one night and go out another time.

3. Be careful with your overdraft

A student overdraft can be a useful safety net, but don’t fall into the trap of thinking of it as “free money”.

Using it regularly to pay for everyday expenses is usually a warning sign that you’re spending more than you can afford.

And you’ll have to pay this money back at some point.

4. Agree how you'll split household costs

If you're living with other students, don’t delay talking about how you’ll manage household costs.

It’s not just expenses like energy and water. 

You’ve also got shared costs like food, broadband, cleaning products, toilet rolls and much more besides.

Yes, it might feel awkward bringing up money with new housemates.

But it's better in the long run to agree on things early, so you know each person is making a fair contribution.

The alternative is letting resentment simmer and possibly turn into a full-blown argument.

Check here for more tips on how to stay on top of your finances at university.