Budgeting

This content applies to Scotland only.

Housing laws vary between Scotland and England. This page applies to Scotland only. Get advice relating to England

Before you leave home, it's important to work out a budget to make sure you'll be able to afford all the new things you'll have to pay for. All those things you may well take for granted, such as hot water, food and the TV licence, will suddenly be coming out of your pocket.

How do I draw up a budget?

When you draw up a budget, you add up all your outgoings and all your income, then subtract the outgoings from the income and hope that there's something left over!

The MoneySavingExpert website has a really useful budget planner that you can download and use to help you work out how much you spend and how much you can save.

Outgoings

First of all, consider all your outgoings, that is, the money you spend, or will be spending if you get your own place.

Think about the things you will have to spend money on if you have your own place and how much they will cost:

  • rent (the average rent in Scotland is around £50 a week, but depends on where you live and what kind of property you're renting)
  • electricity and/or gas bills (these will vary depending on the size of your home and the time of year - the more you have your heating on, the higher your bills will be!)
  • telephone bill
  • council tax (your council's website may give you an idea of how much this will be. Remember, if you're a student or under 18 years you don't have to pay council tax.)
  • home contents insurance (use a website such as the Home Insurance Centre to get a quote)
  • television licence (at the moment a TV licence costs £139.50 for a year).

Then try and work out how much you spend a month on:

  • mobile phone
  • credit card or loan repayments
  • travel
  • food
  • toiletries
  • clothes
  • cigarettes
  • going out
  • other expenditure (CDs, books, presents etc.)

If you find this hard, try writing down everything you spend this month and see how it adds up. You'll soon be able to see where your weak spots lie!

Income

Next you need to look at the money you have coming in. This could be from:

  • wages
  • benefits (see below)
  • student loans
  • contributions from your family.

If you take away your outgoings from your income, how much do you have left over? If you don't have anything, you'll need to look at how much you spend in each area and find out where you can cut down. You might also have to look at ways of increasing your income through work, and it is always worth visiting your local Citizens Advice Bureau or advice agency to ensure that you are getting the benefits you are entitled to.

Benefits, grants and loans

If you are out of work or on a low income, you may be able to claim benefits. Check out the following pages to find out more:

You may also be able to get help to pay your deposit and rent in advance.

Where can I get help?

  • You can get advice on benefits from a Citizens Advice Bureau or other advice centre. An adviser can help you work out which benefits you are entitled to and help you make a claim. They may also be able to sort out any problems you have with your claim, for example if it is delayed. Use the Advice Services Directory to find an agency near you.
  • Call the Young Scot information line on 0808 801 0338 (lines are open Monday to Friday, 10am-6pm) for advice on financial products and services, and help with money problems.
  • The National Debtline website has lots of useful information on budgeting and dealing with debt, including self-help packs you can download.
  • The Site and the National Youth Agency's Youth Information website both feature further advice on managing your finances (these websites are mainly aimed at young people living in England, but the information on budgeting and benefits applies equally to Scotland).
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