By Lewis Oakley
For many people across the UK, going to university is not only the first time living away from home but it is also the first time they are responsible for their own finances.
However, in the modern world, the main source of income for those at university is a student loan which doesn’t appear to be going far enough anymore. The study, by Endsleigh, revealed one in four freshers will spend their first loan instalment within a month of receiving it. Another six in ten said it was gone within a couple of months.
It appears that students are seeking other options to make ends meet and these methods may not be approved by their parents. Seven in ten blinkered parents say their children don’t have or use a credit card – when in fact 94 per cent of students admit to having one.
And more than one in four don’t believe their offspring make use of an overdraft, but just two per cent of students said this was the case.
As a result of the money troubles, parents are hit with an unexpected cost of £683.30 when a child goes to university as they have to help out with the cost of food, course books and travel. Around one in five parents even said the biggest negative effect of their children starting university on their life was on their own finances.
Sara Newell, Director of Student & Graduate Markets at Endsleigh, advises: “No young person who is preparing to start higher education this autumn should begin term without a basic conversation about money matters.
“We urge parents of young people soon off to university to ensure their child doesn’t fall in to the student money advice gap.
In an effort to combat bad money management Endsleigh have put together their five money tips to help Freshers get to grips with finance away from home:
- Have a money chat – talk to someone you trust about basic money management
- Keep a weekly budget – use it to set monthly spending limits
- Get covered – protect your precious gadgets from loss and theft
- Hit the university job shop – be sure you’re in the queue for the best jobs in town to help you enjoy uni with less money worries
- Check your inventory – make sure you receive and check your inventory. Take photos of your room when you move in and out to avoid deposit disputes