Almost one in 10 students (9%) are likely to drop out of university because they cannot afford to continue with their studies, according to new research from Blackbullion – the financial education company.
November marked the half-way point between student loan instalments and the findings reveal that nearly half a million students are worried about how they will afford to continue their studies. The research also found that one in 10 have already spent all of their first loan instalment.
Despite a broad awareness that current spending habits impacts their future finances (59%), almost a third (30%) of students say they’ll ‘worry about it later’ and a similar number (29%) agree that they don’t think about the future as they live for the now.
The latest forecast for the average amount of student debt upon graduation is £44,015, yet nearly a third (30%) of students say they are ‘indifferent’ about how they manage their money. Blackbullion is calling on students to act now and take control of their finances and avoid spiralling debt, as further figures suggest that most students will be unable to pay off their loans after 30 years.
Vivi Friedgut, Founder of Blackbullion, said: “It’s worrying that students feel they have to resort to dropping out of university as a financial solution. Students shouldn’t live in fear of their financial future, but instead be better educated about financial management.
“There also seems to be a sense of complacency amongst students. Our research has shown that students are worried about money, but seem to lack a ‘can do’ attitude to turn the situation around. By taking control of their finances now, students can apply themselves in education rather than worry about money. We encourage universities and students to actively seek out ways to boost financial knowledge.”
Blackbullion is working with universities and colleges across the UK to help students to get smarter with their money. Students who complete the Blackbullion online program are more likely to budget (75%), feel in control of their debt (57%) and are less likely to run out of money before the end of the month (57%). These skills are not only essential for personal money management, but allow students to get to grips with financial jargon in order to make informed decisions with confidence.
Seven Top Tips from Blackbullion to help students get back on track with their money:
1. Re-assess your credit card payments
If you have a credit card see if it can be moved onto a 0% card and save the interest payments
2. Find the hidden treasures in your cupboards
Cupboards and freezers often have a multitude of foods that can be converted into meals – pasta bakes and canned food can make up your meal plan for the week
3. What do you really need to pay for?
Make sure you aren’t spending on unnecessary items and are making full use of your travel discounts, while also check you are getting the best deal on your gym membership and any subscriptions such as Netflix, magazines and apps.
4. Choose cash, not card
Switch to cash – you’ll be less likely to overspend if you are handing over cold hard notes and coins
5. Buy in bulk
If you are in shared accommodation shop with your flatmates and buy in bulk and cook in bulk
6. Increase your incomings
Do some research and see if there are any opportunities for you to pick up some part time work on the side, such as tutoring for example. Also, with Christmas coming up and the sales just around the corner, local shops may be looking for extra staff.
7. Use the support available
Make sure you are using the financial support available on campus. They will be used to dealing with students who need financial help and advice and will have very useful tips that will lighten your financial burden