What to include in a student’s budget?
“The largest monthly expense item for a student is usually housing. However, when assessing whether a particular rental option is affordable, the rent price alone is not enough – utility bills, internet, and other living-related expenses should be added. Therefore, before signing a rental agreement, it is worth creating a full monthly budget and evaluating not only how much the housing itself will cost but also how much money will be left for food, transport, studies, and leisure,” says Dr. Dalia Kolmatsui, a financial expert at Artea Bank.
According to her, when planning a student’s budget, it is worth aiming for housing expenses not to exceed about one-third of monthly income. However, in reality, this share may vary depending on the city: in the most expensive student cities, especially Vilnius, rent can constitute an even larger portion of income, while in smaller cities, the housing burden on the budget is often lower.
It is equally important to include food in the budget. According to Artea data, people aged 18–24 spend about 240 euros per month on food and about 110 euros on dining out. This is not specifically a student budget, but these data well illustrate how much daily eating habits can cost. Therefore, when planning monthly expenses, it is worth separately allocating an amount of money for groceries and eating out.
The 50/30/20 rule – a simple way to understand where the money goes
Once all future expenses are listed, it is worth distributing them according to priorities. One of the simplest starting points is the 50/30/20 rule: about half of the income should be allocated to essential expenses, 30% to variable and non-essential expenses, and the remaining part to savings and investments. This budgeting principle is also recommended by Artea’s financial expert.
“The most important thing in a student’s budget is not mechanically maintaining certain percentage proportions but understanding one’s real financial situation. If almost all income goes to housing, food, and other essential expenses, it is worth looking for more impactful solutions, such as sharing housing or choosing a less expensive neighborhood. Giving up small purchases can help, but the biggest difference is often made by a few larger financial decisions,” comments Dr. D. Kolmatsui.
The expert also recommends including savings in the budget from the very beginning: regularly setting aside 10–20% of income each month if possible. If a student’s income is small and it is not possible to set aside such amounts, it is worth starting with a smaller amount – the most important thing is to form the habit.
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“Practically, this means that upon receiving a salary, scholarship, or money transferred by parents, one should not wait until the end of the month hoping that something will be left. It is worth setting aside part of the money immediately. It is also useful to track all expenses for at least one month – from rent and food to subscriptions, coffee, or spontaneous purchases. Such a simple experiment quickly shows which expenses are truly necessary and which have just become a daily habit,” the interviewee recommends.
Discounts available to students – an opportunity to spend less, not to give up leisure
Savings do not necessarily mean that a student has to give up entertainment or spend all leisure time at home. First, it is worth taking advantage of what is available due to student status. One of the most important areas is public transport. For example, in Vilnius, students receive an 80% discount on public transport tickets, and in Kaunas, students of full-time higher education programs also receive an 80% discount on tickets. Specific ticket prices and discount conditions depend on the city and ticket type, so it is worth checking them in your city’s public transport system.
Students should also check intercity travel prices. For example, LTG Link offers a 50% discount on travel within Lithuania for students in regular studies.
There are also many opportunities to save in the culture and entertainment sector. The ISIC discount catalog offers students up to 70% off in various museums.
“It is very important not to forget that a discount itself is not saving: a cheaper purchased item or ticket is still an expense. Ultimately, the first years of independent living can be a good opportunity to learn to manage your money. A student does not need to have large savings immediately or perfectly follow every budget rule. It is much more important to evaluate all expenses in advance, distinguish essential needs from wants, take advantage of discounts available to students, and regularly set aside at least a small portion of income. Such habits later become a financial foundation that is useful long after studies are over,” comments Dr. D. Kolmatsui.
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