The 50/30/20 Rule: Student Edition

We've all been there. The Maintenance Loan drops. You feel rich. You buy a round of drinks, a new jacket, and maybe a "sensible" textbook.

Three weeks later, you're eating plain pasta and checking if you can sell your kidney on eBay.

The problem isn't that you're bad with money (well, maybe a little). The problem is that standard budgeting advice doesn't work for students.

Financial gurus love the 50/30/20 rule:

• 50% Needs
• 30% Wants
• 20% Savings

But let's be real: for many UK students, rent alone eats up 80% of the Maintenance Loan. If you tried to save 20%, you wouldn't eat.

Here is the Student Edition of the rule—a realistic way to survive uni without an overdraft meltdown.

The Reality Check: 70/20/10

Forget 50/30/20. Welcome to the 70/20/10 split.

70% Needs (The "Survival" Pot)

This is the non-negotiable stuff. If you don't pay this, you get evicted or starve.

• Rent: The big one.
• Bills: Gas, electric, water, internet.
• Food: The supermarket shop (not Deliveroo).
• Transport: Bus pass or train tickets.
• Uni Costs: Printing, textbooks, lab coats.

The Harsh Truth: If your rent is more than 70% of your income, you are in the "Danger Zone". You need to either increase income (part-time job) or cut costs (cheaper room next year).

20% Wants (The "Sanity" Pot)

University isn't just about studying; it's about living. You need a social life to stay sane.

• Nights out / Socials.
• Takeaways / Coffee.
• Netflix / Spotify (Student plans only!).
• Gym membership.

The Rule: When this pot is empty, the fun stops. No "borrowing" from the rent money.

10% Future (The "Summer" Pot)

"Savings" sounds like a joke when you're a student. But this isn't for a pension—it's for Summer.

• Student Finance stops in May/June.
• Your rent contract might run until July or August.
• You need a deposit for next year's house.

Put 10% away every loan drop. You will thank yourself in June.

How to Actually Do It (The "Pay Yourself" Trick)

The biggest mistake students make is keeping their entire loan in one account. You see £2,000 and think "I have loads of money." You don't.

Step 1: The Bills Account Open a second bank account (or use a Pot in Monzo/Starling). As soon as the loan drops, move all your rent and bill money for the term into this account. Do not touch it.

Step 2: Calculate Your "Wage" Take what's left. Divide it by the number of weeks in the term (usually 10-12).

• Example: £1,000 left / 10 weeks = £100 per week.

Step 3: Set up a Standing Order Pay yourself that £100 every Monday. That is your budget for food and fun. If you blow it all on Tuesday, you eat beans until next Monday.

Do The Math

This all sounds great, but how do you know your numbers?

Don't guess. Use our free Student Budget Planner.

1. Enter your Loan amount.
2. Enter your Rent.
3. It will tell you exactly how much you have left per week.

Summary

• The Old Rule: 50/30/20 (Impossible for students).
• The New Rule: 70/20/10 (Survival / Sanity / Summer).
• The Secret: Move your rent money immediately and pay yourself a weekly wage.

Budgeting isn't about stopping the fun. It's about making sure the fun lasts until the end of term.