Monzo vs. Starling for Students: Which Banking App Works Better for Budgeting?

If you’re a student trying to keep track of your money, you’ve probably heard of Monzo and Starling. Both apps promise to make budgeting easy, help you avoid overdrafts, and give you real-time updates on your spending. But which one actually works better for someone living on a tight student budget? The answer isn’t just about features-it’s about how each app fits into your daily life.

Monzo: Built for Spending Awareness

Monzo started as a bank for people who wanted to stop guessing where their money went. Its core strength is clarity. Every time you swipe your card, Monzo sends an instant notification with the exact amount, merchant name, and category-like ‘Coffee’ or ‘Transport’. No jargon. No delays.

For students, this matters because small, frequent purchases add up fast. That £3 latte, £5 Uber ride, £7 meal deal-it all shows up in real time. You don’t need to log in to check your balance. You just glance at your phone. And if you see a £25 charge from a store you don’t recognize? You can freeze your card instantly.

Monzo’s budgeting tools are simple but effective. You can set monthly spending limits for categories like Food, Social, or Shopping. When you hit 80% of your limit, you get a gentle nudge. At 100%, you’re warned you’re out of cash. No penalties. No fees. Just honesty.

One thing students love: Monzo’s ‘Pot’ feature lets you split your money into separate virtual jars. You can have one Pot for rent, one for groceries, one for fun. It’s not a real bank account-it’s just a way to mentally separate your cash. And since you can’t accidentally spend from a Pot, it reduces impulse buys.

Starling: Built for Control and Flexibility

Starling Bank doesn’t just track your spending-it lets you take charge of it. While Monzo focuses on awareness, Starling gives you tools to shape your habits. Its ‘Spaces’ work similarly to Monzo’s Pots, but with more customization. You can set rules: ‘Save £10 every time I spend over £20’ or ‘Move £50 to my savings pot every Friday’.

Starling also has a feature called ‘Round Ups’. Every time you make a purchase, it rounds the amount up to the nearest pound and moves the difference into a savings pot. Buy a £2.60 sandwich? £0.40 goes to savings. It adds up quietly-without you thinking about it. Over a month, that’s £30-£50 extra saved, just from daily spending.

Starling’s budgeting dashboard is more detailed than Monzo’s. You can see spending trends by day, week, or month. It shows you how your spending compares to previous months. If you notice you’re spending 40% more on takeaways this month than last, Starling flags it. You don’t need to be a finance expert to spot the pattern.

Another advantage: Starling offers free ATM withdrawals worldwide. If you’re studying abroad or traveling home for the holidays, you won’t get hit with foreign transaction fees. Monzo also offers free withdrawals, but only up to £200 per month. Starling has no cap-so if you’re flying to Spain for a weekend, you can withdraw £300 without a charge.

Student Perks: Who Gives You More?

Both banks are free to use for students, but their perks differ.

Monzo gives you a 10% discount on food delivery through its partnership with Deliveroo. If you’re ordering pizza at 2 a.m. after a study session, that’s £2 saved per order. It also offers a student discount on Spotify and Amazon Prime through its ‘Monzo Marketplace’.

Starling doesn’t offer discounts on subscriptions, but it does give you free access to credit-building tools. If you’re 18-24 and have a Starling account, you can sign up for its ‘Credit Builder’ feature. It lets you make small, regular payments toward a loan you don’t actually take out. These payments are reported to credit agencies. After 6 months, you’ll have a credit history-something most students don’t start building until they apply for a mortgage or car loan.

That’s huge. A 2024 study by the Financial Conduct Authority found that 62% of students under 21 have no credit history. Starling helps you start early, without debt.

Real-World Use: A Student’s Experience

Emma, 20, studies psychology at Manchester. She used Monzo for her first year. She liked the notifications and the Pot system. But she kept forgetting to check her balance. ‘I’d see a £15 charge for a gig and think, “Cool, I’ve got that.” Then I’d realize I’d already spent my food budget.’

She switched to Starling last semester. ‘The Round Ups surprised me. I didn’t even notice I was saving £40 a month. And when I went to Berlin for a conference, I withdrew €150 without a fee. Monzo would’ve charged me.’

She still uses Monzo’s category breakdowns to see where her money goes. But she relies on Starling’s rules and savings automation to actually keep her on track.

What You Lose With Each

Monzo doesn’t have automated savings rules. You can’t set up ‘Save £5 every time I buy coffee’. You have to move money manually. That’s fine if you’re disciplined. But if you’re tired, stressed, or distracted? You’ll forget.

Starling’s interface is slightly more complex. The dashboard has more options-and that can be overwhelming. If you just want to see how much you spent on snacks this week, you have to dig a little deeper than with Monzo.

Neither bank has physical branches. That’s fine for most students. But if you need to deposit cash (like from a part-time job), you’ll have to use PayPoint locations. Monzo lets you deposit cash for free at 40,000+ locations. Starling charges £1 per deposit. That adds up if you’re getting paid weekly in cash.

Which One Should You Choose?

If you’re the kind of person who needs to see every pound spent to avoid overspending, go with Monzo. Its simplicity and instant alerts make it perfect for students who are just starting to manage money.

If you’re ready to take control-to automate savings, build credit, and plan ahead-Starling gives you the tools to do it. It’s better if you’re thinking beyond just this term. You’re not just budgeting for food and transport. You’re building a financial foundation.

Both apps are free. Both offer real-time updates. Both help you avoid overdrafts. The real difference? Monzo shows you the problem. Starling helps you fix it.

Final Tip: Try Both

You don’t have to pick one forever. Open both accounts. Use Monzo for one month, Starling for the next. See which one you actually use. Which app do you open three times a day? Which one makes you feel less stressed about money?

Most students stick with the one they feel comfortable with-not the one with the fanciest features. The best app is the one you actually use.