Students staying at home to save cash

Wednesday, 18th July, 2007

Students’ financial worries mean that almost a third (31 per cent) of the 446, 765 young people planning to start university this year intend to continue living with their parents, compared to just a fifth last year (22 per cent), according to a new report from Lloyds TSB student banking.

Of the students surveyed, nearly a third (31 per cent) said that if they didn’t live at home, it would be too expensive for them to go to university. A further eight out of ten (79 per cent) intend to stay with Mum and Dad as it is an easy way to save money and over a quarter (27 per cent) plan to live at home to help keep their student debt under control.

In contrast, two fifths (41 per cent) of young people admitted that living at home was ‘an easy life’ and even if they could afford to move out, they’d choose to stay put.

Students who are intending to live away from home said making the money stretch and managing finances for the first time is a concern. More than a quarter (26 per cent) said that they are worried about managing their money whilst at university; 28 per cent are concerned about how to make their money last the full term and a fifth of students surveyed admitted they have never set a budget and would like some further support.

However, six out of ten (63 per cent) think the independence they will get is worth the extra financial burden while over a quarter (29 per cent) said that they can’t stay at home as the university they have chosen is too far away. Only one in ten have no concerns about the additional debts that living away from home will bring.

The main reason students gave for leaving home was to be close to the university campus cited by three quarters (75 per cent) and to gain independence, mentioned by 69 per cent. Three fifths (59 per cent) are attracted by the social aspects of living away from home and nearly a quarter (23 per cent) admits that they wanted to escape their parents’ clutches.

The survey also revealed that finding ways to manage student debt is a priority for all students. Seven out of ten ( 71 per cent) are planning to work during term time; in fact over a quarter of students surveyed said that a part time job is essential to pay their way through. In contrast, ten per cent admitted that they plan to rely on their loans and overdraft to fund university life.

In addition, over a half (58 per cent) said that they have already applied for the Government’s student finance package, with 46 per cent applying for a loan to cover tuition fees. A further two fifths of young people (40 per cent) said they have applied for a maintenance loan to help with living costs and 20 per cent have applied for a bursary from their chosen university.

Caroline Brady, Lloyds TSB student banking said: “Students face higher levels of debt than ever before and whilst it’s essential that they find ways to keep costs to a minimum it is also important that students think carefully about all the options.

Source

http://www.easier.com/view/Finance/Banking/News/article-
129442.html