Lloyds TSB research shows students are struggling to fly the nest
A survey by Lloyds TSB Student Banking has shown that almost half (47%) of young people starting university degrees this autumn believe they will be the most financially disadvantaged students for many generations.
The survey of more than 1000 17-25 year olds who plan to go to university this year showed that those going into higher education have a bleak outlook on the financial costs of the course. Almost one third (31%) of those questioned said they thought that the costs of going to university would soon outweigh the benefits of a degree.
The same percentage - up from 27% in 2008 - is looking to stay at home to save money, meaning they will miss out on their first taste of independent living. The Lloyds TSB Student Banking research also revealed that almost a quarter (24%) of students believes that getting into debt while they study debt is inevitable because of the state of the economy. To compound their fears, one in five (20%) believes that it will be difficult to find a job after graduation.
Catherine McGrath, director of current accounts at Lloyds TSB, said: "It’s no surprise that in the current economic climate young people are thinking about how their university career will affect them financially and are considering the ways to make their money work harder.
“It’s important that students-to-be concentrate on their studies and don’t spend unnecessary time worrying about the future. Therefore picking the right bank accounts, using sound money management techniques and considering part-time work are all important steps that will help students manage their finances during their degree course.”
Although the majority students-to-be said that they relished the opportunity to manage their own money, more than a quarter (28%) of potential freshers admitted to being worried about managing their own finances, with 25% saying that they hadn’t received any financial guidance in advance of starting their course.
Independent financial expert, Alvin Hall, commented: "The current economic climate is very daunting for young people, many of whom may be wondering whether spending money on their education really is the best bet.
“Young people need to remember that a degree is an investment in themselves and that sometimes it takes a while for that investment to pay off. In the meantime, they need to do everything in their power to make every penny count and ensure that, when they are standing on their own two feet as graduates, they can look back on their studying and spending without regrets.”
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