Making a budget allows you to have a clear vision of your cash inflows and outflows. This helps you adjust your expenses to your income in order to avoid unpleasant surprises. A well-balanced student budget should make it possible to cover the main items of expenditure such as housing, food, transport, leisure, etc.
In this guide, we will see step by step how to make your monthly budget when you are a student in France.
The first step in establishing a budget is to assess all of your monthly income. For a French student, the main sources of income are generally:
1-Scholarships and financial aid
Many students receive a grant based on social criteria paid by the CROUS. Its maximum amount is around 550 euros per month. Other aids also exist, such as one-off emergency aid or for international mobility. Remember to include all these grants in your estimated budget.
4-Other income
Other resources can be added such as Personalized Housing Assistance (APL), CAF housing benefits, spouse's income, etc. They should not be overlooked in your provisional budget.
In addition to these potential earnings, the student has an overall vision of his monthly cash inflows. He can then move on to estimating his expenses.
Once their income has been estimated, the student must take stock of all of their recurring expenses each month. The main expenditure items are:
The housing
This is often the most important position. For a CROUS studio or room, count between €150 and €250 per month. For private accommodation, plan between €500 and €950 per month instead.
Health
A student health insurance is charged around twenty euros. Add punctually, medications, medical appointments...
The clothes
Set a minimum budget for new clothes and maintenance.
With all these elements, the student will have an overview of his regular monthly expenses. He could then establish his balanced monthly budget.
Once the income and expenses have been estimated, it is time to establish a concrete monthly budget.
The approach consists in:
This gives the monthly balance, positive or negative, and makes it possible to determine whether the budget is balanced or in deficit.
For example:
Revenues:
Level 5 grant = 550€
Expenses:
Rent including charges = 500€
Monthly balance = Income - Expenses = 1230€ - 970€ = +260 €
In this example, the budget is in excess of €260 per month. The student is in a comfortable situation. If there was a deficit, some expenses would have to be cut.
This written budget allows you to see your financial situation in concrete terms and to adapt your expenses to your income. It must be readjusted regularly according to changes in income and expenses.
Once a monthly budget is established, it is often necessary to optimize it to balance expenses and revenues. Here are a few tips:
Reduce some expenses
Identify items of expenditure that can be reduced, such as:
Outings and leisure: set a maximum budget, cook instead of ordering, take advantage of student discounts...
Find ways to increase your cash flow:
Work more as a student during the holidays
Therefore, identify the positions to be reduced and the revenues to be increased in order to achieve an optimized and perfectly balanced budget. This optimization requires effort, but provides financial peace of mind.
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