Half of students run out of cash

26 June 2014

Half of students run out of money before their next student loan instalment, according to research.

Just one in 10 university students are confident in their ability to budget and believe they have a good understanding of debt, saving and investing, a survey by financial education company Blackbullion has found.

And it seems that students are not in a good financial position before they start university either, with 44% of students heading off to university with no savings, while 15% are already in debt. Nearly two-thirds of students try to budget but don't stick to it.

When it comes to the repayment terms of student loans, 61% of students don't understand how they work, with the majority (83%) admitting they need more financial education.  

Get a head start

Vivi Friedgut, founder and director of Blackbullion, said: "Students don't need to be in the dark about their financial situation. The summer provides a great chance for to get a head start on managing their finances before term time by thinking about a basic budget."

Blackbullion offers the following pointers:

Be realistic. Think about how much you'll spend and how much things really cost. Be honest about your spending habits. Think about what you could change to spend less - buying a coffee before lectures, for instance.

Plan in advance. The vast majority of students (91%) have regretted a purchase so beware midnight shopping splurges and that last-minute train ticket. Shop around using comparison websites to save money on essentials such as contents insurance.

Check if you're entitled to help. You're not alone if you haven't looked up financial support options - more than half of students (57%) don't do their research. Asking about the types of funding and support offered at your university or through external organisations could give you a safety net.

Are you worried about your, or your child's, university finances? Email your questions to the Moneywise team at editorial@moneywise.co.uk.

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