New research reveals many freshers will be heading off to university with financial trepidation due to money constraints faced by themselves and their families.
According to a Nationwide Building Society poll of more than 1,000 upcoming first year students1, 86 per cent say the cost-of-living crisis has made them more worried about going to university from a financial perspective.
Those concerns were evident when choosing a university, with more than three quarters (76%) of upcoming students admitting the cost of living was a key consideration when it came to the choice of location. A similar number (72%) considered living at home during the first year due to money concerns.
Parental/guardian support:
More than a third (36%) of new university students say money from parents and guardians will be a primary source of funding (second only to the student loan: 46%). Over half (56%) say their parents or guardians will be able to support them financially during their first year at university.
However, parental and guardian support isn’t available to all, with more than a quarter (28%) saying they won’t be able to help financially during the upcoming university year. Moreover, the cost-of-living crisis is a clear factor, with 69 per cent of students saying it has impacted the level of financial support that parents and guardians can provide this year.
Working while at university:
Nearly a third (31%) of students say another primary source of income will come from a salary because around half (47%) of those who say they plan to get a part-time job admit they will work up to 10 hours per week. A further 42 per cent say they will work between 11 and 20 hours a week in addition to their studies.
Student current accounts:
According to the research, more than two in five (42%) haven’t yet opened a student current account, with the number rising to 45 per cent of women but dropping to 39 per cent of men.
When it comes to choosing which current account to open, there are four things that are important for students. These are:
- Freebies and perks, such as discount cards and subscriptions: 36 per cent (31% for men vs 40% for women)
- Cashback when spending: 34 per cent (36% for men vs 31% for women)
- Free cash: 31 per cent (33% for men vs 29% for women)
- 0% overdraft: 30 per cent (28% for men vs 31% for women)
FlexStudent current account:
Nationwide’s FlexStudent2 current account currently offers a limited time offer of £100 cashback for students opening the account and who meet all the eligibility criteria3. Students will need to have successfully applied for the FlexStudent account by Tuesday 31 October to benefit from the cashback offer.
Eligible students will receive £100 within 14 calendar days of crediting £500 to their FlexStudent account, which must be done by 15 December 2023.
According to the research, more than three quarters (76 per cent) of students admit they will need to use their overdraft in their first term at university. The FlexStudent account2 continues to offer an interest-free, fee-free, flexible overdraft throughout a student’s studies (subject to status), where they can set borrowing limits. Students can request up to a maximum of £1,000 in the first year, up to £2,000 in their second year and a maximum of £3,000 in year three – one of the highest on the market.
Tom Riley, Director of Retail Products at Nationwide Building Society, said: “Heading off to university should be a joyous time for students, but our research shows they are making that journey with a significant amount of financial trepidation. This is especially prevalent at the moment with the cost-of-living crisis impacting how much support parents and guardians can provide. It can be tough for students financially as it’s often the first time they’re managing their own household budget. Outgoings can sometimes outstrip income, which is usually why many students are likely to turn to part-time work to top up their income.
“It’s unsurprising to see that free cash and a 0% overdraft are important to students when choosing their student current account. Our FlexStudent account has been designed to cover what students want, which is why we’re offering £100 cashback plus an interest-fee and fee-free arranged overdraft of up to £3,000 to use when needed. Using an interest-free overdraft and taking a sensible approach to debt can make a real difference when it comes to their finances.”
