Money for students and new graduates

Resources · Life and money · 4 min read Starting out

Key points

• A simple weekly budget works well on a small or uneven student income.
• Credit card balances grow fast at student-sized repayments.
• Your first full-time pay is a rare chance to set habits before your costs rise.
• Small, automatic savings build a buffer without much effort.

Money tips for students that actually help

The money tips for students that matter most are pretty simple. Know what’s coming in. Plan what goes out each week. Carrying a credit card balance gets expensive fast. The habits you build now tend to follow you long after you graduate.

Student life means uneven income, big one-off costs and temptation everywhere. You don’t need a perfect system. You need one you’ll actually use.

Budget by the week

Student money often turns up in lumps. A part-time job here, a grant or loan payment at the start of term, a bit of help from family. Budgeting by the week smooths that out.

1. Add up what you’ll receive this term.
2. Subtract fixed costs: rent, course fees due, phone, transport.
3. Divide what’s left by the number of weeks until the next money arrives.

That’s your weekly spending money. If a big lump lands at the start of term, try moving it to a separate account and paying yourself a weekly “wage” from it. Anything left at the end of a week can roll into the next one, or into savings.

Credit cards and student debt

Credit can be useful. But small balances have a way of hanging around. Here’s what a $2,000 credit card balance costs at two different repayments.

Assumptions:

• Balance: $2,000
• Rate: 20% a year, charged monthly
• No new spending, and the rate never changes

The same maths works in any currency.

At $50 a month, it takes over five and a half years to clear, and the interest comes to about two thirds of what you borrowed. Double the repayment and you cut the time by more than half. That’s the whole lesson, really.

Watch out for buy now, pay later as well. A few small plans can stack up quickly, and missed payments may bring fees. Overdrafts are another one. Some student bank accounts come with an overdraft, and it’s still debt, with terms that may change once you graduate. Student loans are their own thing. They often work differently from other debt, and the rules depend on where you live, and our guide to student loans covers the basics.

Easy wins while you study

Carry your student ID everywhere. Plenty of shops, transport services and software providers give student discounts, and you only get them if you ask. Buy course materials second-hand, or borrow them from the library.

Cook in batches. Sharing the cooking with housemates can cut food costs a lot. Once a term, go through your subscriptions (streaming, music, apps) and cancel the ones you’ve stopped using.

And keep a small buffer. Even a few hundred dollars put aside can stop a broken phone or laptop from ending up on a card.

Your first full-time pay

Your first graduate job is a big moment. It’s also a short window where good habits are easy to set, because you’re not used to the bigger income yet.

A few things graduates do with it:

• Pay yourself first. Set an automatic transfer to savings on payday, before you spend anything.
• Raise your spending slowly. Moving out and buying new things all at once can lock in high costs. Our guide to moving out on your own lists the real costs.
• Clear expensive debt early. Credit card balances usually cost more than most other debt, and missed buy now, pay later payments can bring fees.
• Check your payslip. Make sure tax, retirement contributions and any student loan deductions look the way you’d expect.
• Start an emergency fund. A few months of costs makes a job change or a surprise bill far less stressful.

How you balance these depends on your debts, your rent and your goals. There’s no single order that suits everyone.

Your credit history starts now

Lenders, and sometimes landlords, may look at your credit history. Pay bills on time and don’t max out cards, and you build a steady record. Check your report once a year so you can spot mistakes early.

Common questions

How should a student budget their money?

A weekly budget is often easiest. Add up the money coming in this term, take away fixed costs, and divide the rest by the weeks left.

Is it a good idea for students to have a credit card?

It depends how you use it. Paying the full balance each month avoids interest and can build a credit history. Carrying a balance gets expensive, fast.

What should graduates do with their first paycheck?

Common choices are setting up automatic savings, clearing high-interest debt and starting an emergency fund. The mix depends on your situation.

Try it

The budget calculator helps you plan a weekly or monthly budget. The credit card payoff calculator shows how long a card balance will take to clear.

General information only, not financial advice. Your situation is your own.