How to Budget on an Apprenticeship

Is there a cost for doing an apprenticeship?

Nope! You don’t pay anything towards your training. The government and employer cover those costs, which also include any exams, assessments and qualifications. If you’re doing a degree apprenticeship, your tuition fees and degree are also paid for.

The whole point of an apprenticeship is to give you a route into the working world, which includes a full salary for the entire duration of your apprenticeship. Depending on the employer, you’ll also qualify for company benefits like bonuses, vouchers, profit shares and more.

The only costs you need to worry about (besides your monthly budget) are travel, food, and work uniforms (unless provided by your job).

Click to know more about the highest-paid apprenticeships available to you.

How to budget as an apprentice

Creating a budget for the first time might seem a little daunting, but the good news is you don’t need to be a finance expert to start. Here’s how:

Get the right bank account

If you don’t already have one, you’ll need a bank account to receive your salary every month. If you’re 16 and just starting, there are plenty of banks that offer teen accounts that can convert to current accounts once you’re 18.

Popular banks that offer accounts to under-18s include Monzo, NatWest, Santander, Barclays and more. It’s all about what works for you. These banks also offer budgeting tools online and in-app.

You won’t usually need a parent or guardian to open the account for you either, but it’s always worth checking. You’ll always need ID, your National Insurance Number and proof of address.

Create a budget sheet

This will probably be the single most important thing you’ll do. A budget spreadsheet will help you visualise your monthly incomings and outgoings and help you establish how much you’ll be left to play with for things outside of your bills and living costs.

You could go semi-old school and use a notepad, or a program like Google Sheets or Microsoft Excel. Or you could use an app instead. There are loads of highly-rated apps to help you put together a solid budget plan. Some of these include:

• Monefy

• Emma

• Fleur

• Snoop Finance.

There are even some banks, like Revolut, Lloyds, and NatWest, that offer budgeting and money management tools.

There are five basic elements of your budget. These are:

• Income. Start with the amount of money you have coming in every month. That’ll include your apprenticeship salary and any other income (maybe you have a side hustle or sell clothes on Vinted)

• Fixed expenses. Your bills go here. That’ll include your phone, subscriptions and any streaming services you have. If you’ll be living alone or with flatmates, this will include your rent and bills. If you live at home, then anything you contribute towards the house will go here

• Debt. If you do have any debt, it should always be part of your budget. Some people might add this to their fixed expenses, but it’s good to have this separate

• Flexible. This is the money you have left. So it can be used for hobbies, going out, a holiday, or even your savings. Some people will split this into different cash pots, such as a set amount each month for ‘Nights Out’ or ‘Beauty Appointments’

• Savings. It’s always a good idea to save some money from your ‘flexible’ stash. The general rule is to save around 20% of your pay. However, starting small to get yourself in the habit of saving is always a good idea. You can always split a hefty bill (such as car insurance) into smaller monthly savings, so that by the time you need to pay it, you have all the money saved from the past 12 months.

Once you've got yourself in the rhythm of setting up a monthly budget, you can begin looking at future expenses, like saving for a house or a car, or just stacking up for an emergency.

Moving away from home for your apprenticeship? Here’s everything you need to know about finding somewhere to live.

Higherin’s apprenticeship money-saving hacks

If you’ve already got your monthly budget sorted or you’re just looking for a few more ways to save those coins, there are loads of options out there.

Student Discounts

As an apprentice, you are still able to access all the benefits that students get. Here are a couple of ones to keep in mind:

Totum

You could save up to £550 per year with a Totum Card. You’ll get huge discounts on your favourite brands, across a range of categories including restaurants, fitness, tech and loads more.

Student Beans

As an apprentice, you also have access to Student Beans discounts.

UniDays

The name might mention universities, but UniDays also offers discounts to apprentices.

16-25 Railcard

Trains are super pricey in the UK, so if you’re looking to save around £200 a year and you’re between 16 and 25, this railcard will be a godsend. It costs £35 for one year and £80 for three. You don’t need to be an apprentice or in education to grab one, either.

TfL Apprentice Oyster Card

If you live in London, are 18+ and in the first 12 months of your apprenticeship, you can apply for an apprenticeship Oyster photocard with Transport for London.

With one, you get:

• 50% discount on monthly or annual Santander Cycle Hire

• Get 30% off adult-rate TravelCards and Bus & Tram Pass season tickets

• If you have a 16-25 railcard, you’ll save a third on pay-as-you-go off-peak fares and daily caps on the Tube, Overground, Elizabeth Line and most National Rail services. All you need to do is add the railcard discount to your photocard. Find out more here.

Saving money

If you have some money left over, consider doing one or more of the following to help you in the future.

Savings accounts

Most banks offer savings accounts that pay interest on your money. Some are fixed-term (you can't withdraw without a fee), others are flexible. Compare rates and terms to find what works for you.

Junior Individual Savings Account (ISA)

ISAs let you save or invest money without paying tax on any interest or gains. You can open your own ISA at 16; once you’re 18, it’ll become a regular adult ISA. Check out GOV.UK for a full breakdown.

Lifetime ISA (LISA)

If you're 18+, a LISA helps you save for your first home. The government adds 25% to whatever you put in. So for every £4 you save, you get £1 free (up to £4,000 per year). Find out more on GOV.UK.

Pensions schemes

Loads of employers offer pension schemes once your probation period is up. Check with your employer to see if you need to opt in; they contribute, too! It’s so worth doing.

Financial independence is everything. Learning how to budget during your apprenticeship will take you to a whole new level of adulting when you’re ready.