Nationwide reveals money worries are the biggest university regret facing students
Going to university comes with its own level of stressors, but according to Nationwide, none are as big as finances.
Nationwide FlexStudent has revealed that this generation is feeling the strain like never before, as they offer cash-strapped kids £100 in cash plus £120 in Just Eat vouchers to help them out.
They'll also get limited-edition debit cards, but while those are nice to have things, that they really need is to know what they should stop doing to ease the burden of having less money.
According to the bank, there are 10 things students these days are doing wrong that includes things like not having any savings, spending money as soon as you get it and even things that are a lot more likely to impact teens these days compared to their parents generation.
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The bank revealed that 20 per cent of those polled admitted to not budgeting or tracking spending, while 19 per cent left assignments until the last minute, which just adds to the disorganisation.
Relying too heavily on overdrafts or credit came in hot for 17 of respondents, while 16 per cent admitted to not saving it advance or for emergencies.
For example, the bank found that UK students are spending up to £300 a week on food and drink.
The research shows 39 per cent of those surveyed spend anywhere between £150 and £300 a week, and that's on top of utilities.
It's such a big burner of their cash that 60 per cent of current students say that they are spending more than they had expected or budget on food in total.
To this, Tom Riley, Director of Retail Products at Nationwide Building Society, said: “Our research shows just how much more financial pressure today's students feel compared with previous generations, which is why we're continuing to offer real, practical support through our FlexStudent current account offer. Whether it's an unexpected bill or a well-earned takeaway with new housemates, we want students to start university on the best possible financial footing. FlexStudent is available to new and existing students starting an undergraduate course, and can be opened via the Nationwide app or in branch.”
Tom Allingham, student money expert at Save the Student said: "Whether you're starting university for the first time this year, or heading back after your summer break, this research is a great reminder for all students to think about their finances before the new year starts."
He said that of seven of the top mistakes uni students make, six are 'related to money'.
He explained the ways to manage money better so the stress isn't as apparent include things like 'working out a budget in advance of the uni year is the single biggest thing you can do. Even if you've not yet started and only have predicted costs, getting at least a rough idea of what shortfalls you might have is much better than finding out a few weeks in'.
He added: "This way, you can discuss the possibility of extra contributions from your parents, plan where you can cut back, or start looking for part-time work before everyone else."
As for the other issues, here's what the research found:
- Spending the entire student loan in the first few weeks - 16%
- Not asking for help from tutors/lecturers - 16%
- Living with incompatible housemates - 16%
- Letting living space become messy or stressful - 16%
When it came to asking parents what they found to be the biggest problems, it was a lot less.
For example, most people didn't find anything 'in particular' being the triggers for stress (29 per cent).
However, 17 per cent said leaving assignments until the last minute was a stressor, as was choosing the wrong accommodation (16 per cent) and not saving anything for emergencies (16 per cent).
Students today were found to overspend (18 per cent) and with the cost-of-living increasing prices like nobody's business, it's not surprising they're finding it hard to manage.
Britt Jones