As a student, there are many costs to consider before starting college or university, such as fees for courses, accommodation costs, living expenses and travel expenses. That’s why knowing how to budget as a student is of the utmost importance.
If you have never created a budget before, don’t worry, we’re here to help! We’ve set up a guide on how to manage your student finances to help you get started.
Before we jump right into your student finances, let’s take a look at what a budget actually is and why it’s important.
Note: This article was updated in January 2023. Please make sure to double-check the costs in relation to inflation.Â
Table of Contents
What is a Student Budget?
A budget is a financial plan that allows you to keep track of your spending and achieve your short- and long-term financial goals. Ultimately, budgeting your finances will ensure that you can pay for and organise your living expenses, such as food, accommodation, tuition and student loans.Â
Why is Budgeting Important for Students?
Having a student budget is incredibly important, as it prevents you from spending money you don’t have. Knowing how to manage your student finances also helps you maintain financial stability, helping you separate your wants from your needs.
Once you’ve outlined all your costs, you’ll be able to track all your necessary expenses. You’ll also be able to work out your surplus, which is the money that’s left over after all your obligations have already been paid.
How to Budget as a Student
Now that you know what a student budget is and why it’s important, it’s time to build your very own. To help you do this, we’ve provided a sample of all your necessary expenses, such as:
- food
- general monthly costs, and
- course costs.Â
Food
The average monthly food cost in South Africa is anywhere from R2,000 and R4,000 + per person, depending on the products purchased and restaurant prepared meals.
When budgeting for meals during an average month, you should try and estimate a weekly cost for groceries and eating out.
While a reasonable meal may cost something around R120, a mid-range restaurant may cost R400 for a meal for two and you can expect to pay around R25 – R35 for your morning coffee if it’s at your local coffee shop.
General Monthly Costs
Budgeting for all costs of living is vital when living as a student, and it builds knowledge and skills for later life.
General monthly living costs range from necessities such as groceries, clothing, internet, laundry, electricity and water, to funds for entertainment, eating out, and other recreational activities.
Course Costs
Course costs are charged to the student account depending on the course, except for any extra things needed for projects. For a Bachelor of Education Degree, you may budget extra for projects (R1000+ per year).
Other costs to consider are Internet and Wi-Fi; you may be using prepaid data so remember to factor this into your cost calculations; stationery, books, textbooks and lots of paper! Printing is also charged to the student account according to what is used and includes data costs.
Data costs are charged to the student account if you use the university’s system; they charge for what you use and are very reasonable. Try to remember to cover all the costs involved so you don’t end up not having enough budget.
Example of a Student Budget
To help you budget certain necessary expenses mentioned above, we have outlined an example of a student budget to help you get an idea of how a breakdown of your student living costs may look.
| Cost (per month) | Min | Average | Luxury |
| ACCOMMODATION: Depending on the number of people sharing and area. | 3500 | 8500 | 9500 |
| FOOD: Weekly meal plans (from universities) | 15000 | Â 20000 | 25000 |
| FOOD: Groceries for cooking: all meals at res | 2000 | 3000 | R4000+ |
| FOOD:Â Takeaways and coffees | 25 | 30 | 35 |
| PERSONAL HYGIENE: Haircut | 100 | 250 | R400+ |
| PERSONAL HYGIENE:Â Toiletries | 100 | 200 | 400 |
| TRANSPORT: Taxi | 900 | 1700 | 1950 |
| COMMUNICATIONS: Cell phone | 50 | 350 | 800 |
| SPENDING: Entertainment | 100 | 350 | R800,00+ |
| SPENDING:Â Miscellaneous | 200 | 300 | R400,00+ |
It’s important to keep in mind that the above outline is just an example, and costs will vary greatly from student to student and needs.
It would be wise to add a small entertainment budget to your monthly expenses. Every student needs and deserves a break between all of the studying and work.
If you don’t have a lot of surpluses at the end of each month, don’t worry! There are still plenty of things to do in South Africa on a student budget, such as:
- Hiking
- Having a picnic
- Going for a walk
- Seeing friends
- Going to the beach (should you live near the coast)
Final Thoughts
Budgeting is essential for living on campus. Without it, you could easily overspend on one thing which could leave you broke or without food for the rest of the month.Â
You can manage your spending by creating a budget and tweaking it according to your circumstances each month. Budgeting apps like 22Seven can also be useful for setting and tracking your spending.
If you need assistance with funding, Fundi can help! Fundi offers student financing that covers a range of costs such as tuition, textbooks, study material, accommodation and more. Try out the Fundi loan calculator to see if you qualify for a study loan.
