The NZ Student Money Guide (Survive and Thrive on a Budget)

University is expensive enough without the stress of running out of money mid-semester. Here's the practical money guide for NZ students. If you're new to budgeting, start with our beginner's budgeting guide.

Your income sources

StudyLink

• Student Allowance: $304.88/week (single, living away from home). Income-tested on parents' income if you're under 24.
• Student Loan Living Costs: $304.88/week. Not income-tested. Goes straight to your bank account weekly.
• Course-related costs: Up to $1,000/year on your student loan for books, laptop, etc.

Important: Living costs from your student loan IS debt. You will pay it back. The allowance is free money (if you qualify).

Part-time work

Most students work 10-20 hours/week:

• Hospitality: $22-28/hour
• Retail: $22-26/hour
• Tutoring: $25-40/hour
• Freelancing: variable but flexible hours

Aim for 10-15 hours/week, enough to top up your income without killing your grades.

Your budget

Realistic weekly budget (single student, flatting)

• Rent: $180-250 (room in a flat)
• Food: $60-80 (cooking at home mostly)
• Power/internet: $20-30 (split with flatmates)
• Transport: $20-40 (bus pass or bike)
• Phone: $10-20 (prepaid plan)
• Fun/social: $30-50
• Total: $320-470/week

If your income is $305/week (StudyLink) + $200/week (part-time work) = $505, that leaves $35-185/week for savings or unexpected costs.

Money hacks for students

Food

• Batch cook on Sunday, make 4-5 dinners for the week
• Pak'nSave over Woolworths, save 15-20% on the same groceries (see our food spending guide)
• Don't eat on campus, $12 for a wrap vs $3 for a homemade sandwich
• Potluck dinners with flatmates, everyone cooks once a week

Transport

• AT HOP / Metlink concession, student discounts on public transport
• Bike, free after the initial purchase, healthy too
• Walk if under 20 min, saves money and time vs waiting for a bus

Entertainment

• Student discounts everywhere, UPI card, Student ID at cinemas, Spotify Student ($8/month)
• Free events on campus, clubs, societies, movie nights
• Library, free books, movies, study spaces, sometimes free printing

Banking

• Student accounts are fee-free, make sure you're on a student plan
• No credit cards, seriously, the debt isn't worth it at this stage

The emergency fund

Even as a student, try to build a $500 buffer (the start of an emergency fund). This covers:

• Unexpected car repair
• Textbook you didn't budget for
• Medical expenses
• Bond if you need to move flats

Save $20/week and you'll have $500 in 6 months.

Semester planning

Start of semester costs

Budget for these upfront:

• Textbooks: $200-500 (check the library first, buy second-hand)
• Stationery: $50
• Course costs: $0-200 (lab fees, field trips)
• Moving costs: $200-500 (if changing flats)

End of semester

• Power bill settlement if leaving a flat
• Cleaning costs for bond return
• Moving/storage costs

Should I take the student loan living costs if I do not strictly need them?

Only up to what you actually need. It is the cheapest debt you will ever be offered and it is still debt.

Student loans are interest-free while you live in New Zealand, which makes the true cost close to nothing in real terms. That is a genuinely good deal and it is also why people take the full amount and spend it.

Every dollar borrowed is a dollar off future pay. Borrow what covers the gap between your income and your rent, and leave the rest.

Do I have to pay back the student allowance?

No. The allowance is a payment, not a loan, and nothing is repaid.

Living costs are the opposite: they are drawn from your student loan and come back out of your pay for years. The two land in your account the same way and look identical on a statement, which is exactly how people end up confused about what they owe.

If you qualify for the allowance, it is the better money by a wide margin. Check eligibility every year, because it changes with your age and your circumstances.

When do I start repaying my student loan?

Once you are earning above the repayment threshold, and it happens automatically through PAYE.

Twelve cents in every dollar above the threshold goes to the loan, deducted before your pay arrives. You do not opt in and there is nothing to arrange.

The part worth planning for is leaving the country. A loan that is interest-free in New Zealand is not interest-free overseas, and the repayment rules change with it.

How many hours should I work while studying?

Ten to fifteen a week is where most students land without hurting their grades.

The maths gets seductive past that, because the money is immediate and the cost of a lower grade is not. A failed paper costs the fees again plus another semester, which is the most expensive shift you will ever pick up.

Look for work that pays better per hour rather than more hours. Tutoring in a subject you are already studying is usually the best available trade.

The bottom line

Student budgeting is simple: know what comes in, spend less than that, and track where it goes. You don't need a complex system, just awareness. Most students who get into financial trouble didn't plan to overspend, they just never looked at the numbers. Get started free with Steady.