How to Budget as an International Student in the UK

Why Budgeting Matters for International Students

The cost of living in the UK varies depending on where you study, but typical student living costs (excluding tuition) range from £10,000–£15,000 per year, according to UK Visas and Immigration (UKVI). With such a large amount to manage, it’s easy to overspend without a plan.

Budgeting helps you:

• Avoid running out of money mid-term.

• Track your spending habits.

• Save for travel, hobbies, or emergencies.

• Meet visa and financial requirements with confidence.

Creating a personalised budget gives you control. You can start with a simple tool like the Next Steps Budget Template, which is designed to help you list income and expenses, track progress, and adjust as you go.

Step 1: Know Your Income Sources

Start by working out how much money you have coming in and when. For international students, this might include:

• Family funding or savings: Regular transfers or lump-sum payments.

• Scholarships or bursaries: Depending on your course or university.

• Part-time work: Most student visas allow limited paid work (up to 20 hours per week during term time). Double-check your visa conditions on the UK government website.

• One-off funds: Gift money, internships, or summer work.

Knowing your total available income helps determine what you can comfortably spend each month. Divide any lump-sum payments (like savings or scholarships) by the number of months you’ll be in the UK to get your monthly budget limit.

Step 2: Understand Your Costs

Your expenses will fall into two categories — essential and non-essential. Writing them down helps you see where your money goes.

Essential expenses:

• Tuition fees and course materials

• Accommodation (university halls or private housing)

• Bills: Utilities, internet, mobile phone

• Groceries and toiletries

• Transport costs: Bus, train, or student travel cards

• Insurance: Healthcare (if applicable), renters’ or contents insurance

Non-essential expenses:

• Eating out, coffee trips, entertainment

• Shopping for clothes or gadgets

• Weekend breaks or travel

• Gym memberships or subscriptions

A good way to start is by tracking every expense for one month. Use your banking app or free online tools such as Money Dashboard or Emma to automatically categorise spending.

Step 3: Create Your Personal Budget

Now that you know what comes in and what goes out, it’s time to build your monthly plan.

Here’s how to set it up:

1. List your income (monthly total).

2. Subtract fixed costs (rent, bills, tuition).

3. Set realistic limits for flexible spending (food, travel, entertainment).

4. Include savings — even if small, aim to save at least 10% monthly.

5. Allocate a contingency fund for unexpected costs (such as visa renewals, medical expenses, or emergency travel).

If you prefer not to start from scratch, the Next Steps Budget Template can help — it’s built for UK-based students and easy to update as your circumstances change.

Step 4: Open the Right Bank Account

As an international student, opening a UK bank account simplifies things massively. It makes it easier to pay local bills, avoid foreign transaction fees, and receive payments (like wages).

Look for:

• Student bank accounts with no monthly fees.

• International-friendly options from networks like HSBC or Barclays that offer easy overseas transfers.

• Digital banks such as Monzo or Revolut, which provide budgeting features, instant notifications, and no ATM withdrawal fees abroad.

Once your account is open, set up direct debits for fixed payments like rent and bills so you never miss due dates.

Step 5: Save Money Where You Can

The UK is full of student discounts and budgeting hacks that can help you stretch your money further.

Try these:

• Get a student discount card. The TOTUM card (the UK’s official student discount card) offers savings on food, travel, and entertainment.

• Travel smart. Consider a 16–25 Railcard or regional bus pass for reduced fares.

• Shop around. Grocery chains like Aldi and Lidl are often much cheaper than others.

• Cook at home. A weekly meal plan can halve your food costs.

• Buy second-hand. Check local Facebook Marketplace or apps like Vinted for furniture, clothes, and textbooks.

• Share costs. Split bills or meal plans with flatmates to save money collectively.

A practical tip: allocate a “fun fund” within your budget to enjoy your time in the UK without guilt — just make sure it fits your monthly plan.

Step 6: Keep Track and Adjust Regularly

Your circumstances may change — part-time work hours, exchange rate differences, or new expenses can impact your budget. Review your plan monthly and adjust if needed.

Use tools like your banking app’s “spending summary” feature, or check out budgeting apps that link directly to your accounts for real-time updates.

If you’re struggling to keep on top of things, see our main guide on budgeting for more detailed strategies and troubleshooting tips.

Step 7: Know Where to Get Help

If money becomes tight, seek support early. Most UK universities have student money advice teams who can help you find funding or manage debt. You can also get free, confidential advice from:

• Citizens Advice – for guidance on financial rights and housing.

• National Debtline – for budgeting and debt management (0808 808 4000).

• UKCISA – the UK Council for International Student Affairs offers practical support on finance and visa issues.

Final Thoughts

Budgeting as an international student in the UK doesn’t have to be complicated — it just requires structure and awareness. By knowing your income, tracking your spending, and reviewing your budget regularly, you can confidently manage your money and focus on what you came for: an enriching experience and a great education.

Start today by setting up your first personal budget using the Next Steps Budget Template — your foundation for financial confidence throughout your studies.