Lloyds TSB Student Banking Reports Cash-Strapped Students-to-be
Staying At Home
Released
on: August 27, 2008, 3:01 am
Press
Release Author: Lloyds
TSB
Industry:
Financial
Press
Release Summary: Lloyds TSB Student banking reports that more
than one in four young people starting university in 2008 will
have to live with their parents to save money.
Press
Release Body: According to a new report from Lloyds TSB
Student banking* more than one in four young people starting
university this year will have to live with their parents to save
money. This represents a 4% dip from 2007’s high of 31%,
and a 5% increase when compared to numbers for 2006.
A
third of the 130,000** young people who will find themselves staying
with their parents while they study say that they will not be
able to afford to go to university unless they live at home, while
82% agree that living at home is a great way to save money. One
in four said that living at home is an effective tool for managing
their debt. However, 62% of those who are planning to stay at
home admitted that if money wasn’t an issue, they would
prefer to fly the nest sooner.
Young
people put their student
finances high on the list of university concerns. 26% were
worried about managing money while they are at university, while
13% admitted that this is the first time that they will be setting
a budget and holding the purse strings.
Economic
uncertainty and the prospect of increasing university fees are
taking their toll, with 65% of students saying it will be difficult
to afford university if the cost of living continues to rise and
38% saying that soon the cost of going to university will outweigh
the benefits of going at all.
For
the 66% of students-to-be who are planning to live away from home,
62% think that the financial implications are worth it for gaining
their independence, while a quarter have no choice as they want
to study at a far-away institution. Just 5% will be expecting
their parents to foot the bill for their studies and 11% believe
that they will be able to set a budget and make their finances
work.
The
main reasons for choosing to live away from home are to be closer
to their university (74%), to gain independence (66%) and for
the social life (56%), with 22% admitting that they are itching
to fly the nest.
Catherine
McGrath, director of current
accounts, Lloyds TSB, commented: “Going
to university isn’t just about getting good grades, it also
has to make financial sense.
“However,
university is also a great time to spread your wings and get a
little life experience. By making the time now for some financial
planning and careful budgeting, cash-strapped students should
be able to enjoy further education without worrying unduly about
making ends meet.”
The
survey also revealed that many young people are making difficult
choices in order to balance the books at university. 34% admitted
that they will be taking more than one job over the summer break
to build up their capital, while a quarter will have to hold down
a job during term time to make ends meet. 15% will rely on work
during the holidays to help boost their bank balance, while 8%
said that they would prefer to rely on loans and an overdraft
in order to focus on their studies.
About
Lloyds TSB Student
banking
Lloyds TSB
Bank plc and Lloyds TSB Scotland plc are authorised and regulated
by the Financial Services Authority and signatories to the Banking
Codes.
Lloyds TSB Bank plc Registered Office: 25 Gresham Street, London
EC2V 7HN. Registered in England and Wales no. 2065.
-ends-
Notes
to editors
* Online research conducted July 2008 amongst 1,000 UK 17-25 year
olds who plan to start university in autumn 2008
** UCAS states receipt of 481,784 applications for university
autumn 2008. 27% of those surveyed planned to live at home while
they study. 481,784 x 27% = 130,082
Web
Site: http://www.lloydstsb.com
Contact
Details: Lloyds TSB Student banking PR contact:
Beth Longcroft
Media relations officer
Lloyds TSB
25 Gresham Street
London
EC2V 7HN
020 7356 2491