More than half of UK undergraduates are running out of money before receiving their next loan payment, according to research by a student housing provider.
Student money worries have prompted Campus Living Village (CLV) to join forces with…us!
MyBnk has have developed a new financial education programme #MoneyHacks, dedicated to helping 13,000 first year undergraduates, in or at risk of rent arrears, gain vital information and skills through workshops, training schemes and myth busting ‘Student Survival Guides’.
The project will help young people tackle everything from debt, FOMO and the gig economy to loans and living costs.
CLV’s study revealed that just one in six (14%) stick to their budgets. Despite over a third (38%) of students saying they manage to save money each month or each time they get a student loan payment, more than half (56%) are regularly left with little money before their next instalment comes in.
Money lessons are not compulsory in English Sixth Forms, meaning many teenagers struggle financially during their studies and make uniformed decisions. MyBnk addresses this gap through our Uni Dosh programme, but now we are stepping up to ensure undergraduates do not miss out.
The Department for Education has recently closed a consolation to address the gap in provision of 16+ year olds amid fears young people are missing out at crucial transitional phase.
What did they say?
Lee McLean, CEO of Campus Living Villages, said: “We know that the costs associated with going to university is causing concern for students and their families. With the cost of living rising, and many graduating with high levels of debt as a result of tuition fees, it is more important than ever that students know how to manage their finances effectively. We were encouraged by the number of students in our research who said they do actually create a budget, but concerned that so many don’t stick to it. This might not have a big impact in the short term but can lead to much bigger financial problems over the long term, especially if they use overdrafts or turn to other expensive alternatives to cover their debts.
“Students are often handling their own finances for the first time when they arrive at university, so it’s important that they’re equipped to do so. More than half of our survey respondents said they don’t think students receive enough information about the impact of debt on credit ratings. Not having this information means students could be unaware of the serious consequences of being late with rent payments, going into an unauthorised overdraft or not being able to pay off a credit card. The workshops and training that MyBnk provide will help with this. In addition, we’ll also be providing drop-in sessions for residents with our Village staff as well as targeted sessions on rent arrears to help students facing that particular problem.”
Guy Rigden, CEO, MyBnk said: “Being a fresher is an exciting but potentially daunting time for new students for the first time, many will live independently, receive more money in a lump sum than they’ve ever seen before and then be offered further credit. #MoneyHacks catches students just in time to de-dramatise personal finance, instil good money habits and help avoid the pitfalls and stress triggers, so students can concentrate on their studies and enjoy university.”