University students lack basic financial knowledge, research finds
Incoming university students lack basic understanding and knowledge of personal finance, leaving them at risk of running out of money, new research has found.
Nearly 50 per cent of young adults felt stressed about their financial situation ahead of starting Higher Education, while four in ten didn’t feel at all prepared financially, according to retail payments platform Pay.UK.
Meanwhile, a third felt overwhelmed about managing their budgets after leaving home, with only 35 per cent having set a personal budget before starting university.
Just 16 per cent felt confident and in control of their money.
Three in ten students also felt underprepared due to having to budget for accommodation.
Record levels of university attendance has left some students paying more than they initially expected for rent, due to limited availability and people quickly snapping up cheaper rooms.
Looking back
Graduates have also urged current students to prioritise understanding their financial situation, wishing they had done the same.
Over 45 per cent wish they’d paid more attention to their spending when they started university, while four in ten believed they would set out a clear budget if they were to go back.
Similarly, over a quarter said they would use a savings app or other online banking features to track their spending and monitor how much they have left for the year.
Switching to a student account
However, only a fifth of students have switched their current account to one better suited for student life.
John Dentry, product owner at Pay.UK, said: “Time and again our research has found that young people are transitioning to adult life without financial basics and understandably feel overwhelmed.
“A bank account should suit your financial priorities and the stage in life you’re at.
“With many providers now offering tools, trackers and saving pot settings to help with budgeting…starting university is a great time to consider whether switching is right for you.”