Student budgeting in the Big Smoke

When I told friends that I was planning to study in London, their first reaction was gasps. How could I manage when rents are so high and going out is so expensive? Months later, I've well and truly proved them wrong.

In fact, I plan to rub it in their faces even more when they visit for the day this summer. Cue the £20 challenge.

Quite simply I'll tell my friends that we're going to enjoy London without spending a penny over £20. And no, my plans don't involve anything of an illegal or dubious nature - just a sprinkling of creativity.

Morning

Before doing anything I'll usher my friends to the nearest corner shop - not to marvel at the barely legal cost of Coca-Cola, but to get a travel card. For £3.50 you can get an all day bus ticket, and while not as fast as tubes, it's a much better way to see London.

Spent: £3.50 or if you've got an Oyster card it'll cost you £3.

Splash out: For the hedonistic, money-no-object students out there, black cabs will provide "the finest taxi service in the world".

First on the agenda will be one of London's most iconic landmarks - Trafalgar Square, or more specifically the thousands of tourist-attacking pigeons.

The free entertainment opportunities are endless. Ever wanted to climb an oversized stone lion? Here's your chance! Extra points for yelling "I'm on top of the world, Ma!"

Or whip out the camera and find pigeons that look like celebrities. Sounds hard, but with thousands of them you're bound to find a Gordon Brown or Peter Andre flapping in the water fountain.

Spent: Zilch!

Splash out: If you'd rather see real celebrities, then stake out a spot in uber-trendy pub the Hawley Arms in equally trendy Camden.

Its A-List clientele includes Kate Moss, Kelly Osbourne and Amy Winehouse, but there's no pretentious guest list or VIP area. As long as you obey the official 'No Gawping' rule you'll be sitting pretty.

Once we've had our fun with the pigeons we'll take a stroll to Soho.

There's much more to this district than blush-inducing window displays - for one it has Berwick Street Market. Its mix of suited media types, tourists and inconceivably loud street vendors makes people-watching more entertaining than ever.

Music aficionados will head for independent record shops like Vinyl Junkie and Sister Ray whilst foodies can sample the delis.

Spent: Though free to wonder about it's unlikely that you'll resist buying something. Let's say a £5 spend on a vinyl or gourmet sausages.

Splash out: The pricier alternative is Borough Market near London Bridge. Whether its olive oil personally sourced from Italy or Spanish artisan cheese, a tenner could be spent before you say "hand-reared asparagus stalks".12»