FINANCING THE FUTURE

Similar documents
CP17/27: Assessing creditworthiness in consumer credit

Dealing with Rent Arrears. A Guide to Safeguarding your Home.

Young People and Money Report

Help someone. with problem debt. A three step referral guide from StepChange Debt Charity. IDENTIFY customers who may need us

What do pensions mean to you? A 2018 survey of UK maritime employers and employees

Optimising welfare reform outcomes for social tenants. Understanding the financial management issues for different tenant groups

DEBT BRITAIN 2018 UPDATE. Debt Britain - The Changing Landscape in 2018

Personal Budgeting Support and Alternative Payment Arrangements

T. Rowe Price 2015 FAMILY FINANCIAL TRADE-OFFS SURVEY

yourmoney a guide to managing your credit and debt Volume 6 Life After Debt

Early Delinquency Intervention Workbook

Let us help. Access your Employee Assistance Program (EAP) 24/7 by phone or web.

RETIREMENT REPORT ADEQUATE SAVINGS INDEX

Protecting Families. Getting the conversation started. For financial adviser use only. Not approved for use with customers.

EARLY DELINQUENCY INTERVENTION WORKBOOK

Unilever UK Pension Fund At Retirement Booklet

Personal budgets briefing

5 Biggest Mistakes Most Home Buyers Make

Barriers and Building Blocks. An overview of the 2015 Adult Financial Capability Survey

Local support to replace Community Care Grants and Crisis Loans for living expenses

SLAYING THE DEBT DRAGON

U n l o c k i n g t h e P o t e n t i a l o f D i g i t a l L e a r n i n g

SMARTER COMPANY PENSIONS

Stakeholder Pension. The simple way to start a pension plan. Retirement Investments Insurance Health

Let s take a fresh approach to managing money

BANKRUPTCY. Freephone. FACTSHEET 10 (2018)

Case Study Hafod Housing

OUR GUIDE TO BUYING, REMORTGAGING AND PROTECTING YOUR HOME

Highereducation. students and money. Money Advice Service briefing note. August 2018

While this group have made preparations for retirement, they have not thought through their financial position or their spending needs in any

Consultation Response

YOU ARE NOT ALONE Hello, my name is <name> and I m <title>.

PROTECTION AND YOUR FINANCIAL PLANNING CONVERSATIONS

Basic Debt. Guidance for conversations on basic debt issues. Trainers Notes for basic debt with clients. Citizens Advice financial capability

HOW YOUNG NEW ZEALANDERS PERCEIVE POLITICAL & FINANCIAL WELLBEING: A LONGITUDINAL STUDY ELECTION YEAR UPDATE

GETTING RID OF DEBT: WHAT IS THE BEST OPTION FOR YOU?

DISPOSABLE INCOME INDEX

King s Research Portal

Access to Cash Review Post Office Response

STUDENT GROUP SPONSORSHIP HANDBOOK 2017/18 STUDENT GROUP SPONSORSHIP HANDBOOK 17/18 2

Top. United Way THRIVE

PAUSE AND THINK BEFORE YOU BORROW

Dealing with debt. A guide for customers

The Secret of the Lion

Mortgage Arrears Resolution Process (MARP)

We take care of estate administration. Quickly and completely. It s all we do, every day.

Making Tax Digital A roadmap for small businesses

Breathing Space: call for evidence

Strategy Paper: Financial Planning for Generation-Y. SMSF Specialists Investment Management Financial Planning Accounting

Welfare safety net inquiry

Options for dealing with debt

FINANCIAL PLANNING. the benefits of. financial planning. Prepare for your goals

Protecting Families. Getting the conversation started. Retirement Investments Insurance Health

Review of the Money Advice Service

web: Tel: Fax: Gaysham Avenue, Gants Hill, Ilford, Essex,

Universal Credit The Children s Society key concerns

MoneyMinded in the Philippines Impact Report 2013 PUBLISHED AUGUST 2014

you benefits, health and wellbeing

Getting a financial assessment for care at home

Rental Exchange Frequently Asked Questions

WORKPLACE SAVINGS GUIDE

Declaring Personal Bankruptcy

Factsheet 29. About this factsheet and who it is for. Advice for older people Equity Release

Managing Retirement Doing the right thing by employees (and by the organisation)

Achieve more with less

Consultation response

Policy & Procedure on Managing Current Tenancy Rent Arrears

The Case for a Standing. Standing Commission on Responsible Capitalism

Singapore The Future of Retirement Report Generations and journeys

ARE YOU FIT TO RETIRE?

Canada Report. The Future of Retirement Healthy new beginnings


A GUIDE TO IVAS Everything you need to know about an IVA

Balancing Multiple Financial Goals Worksheet

Consultation Response

Investor questionnaire

SAMPLE ESSENTIALLY WEALTH. Your logo and contact details go here THE BANK OF MUM AND DAD FEELS THE PINCH BUY-TO-LET NOT DEAD YET!

Your Additional Voluntary Contribution (AVC) fund guide

All of your pension information in one trusted place

STUDENT LOAN? WHAT S IN A

Money Matters Guide. A guide to setting up and managing a home. Useful information Please keep safe. Tenant Aftercare Guide

All young people aged 5-18, but particularly those aged 11-18, accessed through schools, predominantly for financial capability.

Managing your finances (general)

Managing your money and paying your rent

Measuring Client Outcomes. An overview of StepChange Debt Charity s client outcomes measurement pilot project

Church Administration Matters

Reflections in the Mirror: Defined contribution plan participants

DSV UK GROUP PENSION SCHEME Your Guide to Making Investment Decisions October 2015

Full file at

Claims: A Consumer s Perspective

Get advice now. Are you worried about your mortgage? New edition

Association of Accounting Technicians response to the HMRC Consultation on salary sacrifice for the provision of benefits in kind

Effective Credit Control Management

Everything you need to know about Universal Credit NOW!

Waverton Charities Team On: INVESTING YOUR CHARITY S MONEY FOR THE FIRST TIME

GUIDE TO OUR PROTECTION SERVICES. Protecting the things that matter the most

The State of Student Finances 2018: Results from a Multiyear Assessment. Carissa Uhlman Vice President of Student Success, Inceptia RESEARCH BRIEF

Pre-Algebra, Unit 7: Percents Notes

Cancer Essentials. Retirement Investments. Insurance Health. Retirementyou. Investments. Insurance. Health. Retirement. Investments.

FULL TIME POSTGRADUATE DISCRETIONARY FUND (PGDE STUDENTS APPLY TO FULL TIME UNDERGRADUATE DISCRETIONARY FUND)

Transcription:

FINANCING THE FUTURE A report on student awareness of the impact of poor money management while at university

Introduction Managing money can be one of the biggest challenges students face at university. For many, university is the first time they have their own pot of money to pay for accommodation, food, clothing and entertainment. Students can feel like they are better off than at any point in their lives when a loan first hits their account. But they soon come to learn that the money runs out quickly if they re not careful. This can be a daunting experience. New financial responsibilities can leave students feeling overwhelmed and unsure about where to turn for support, with many unable or unwilling to seek advice from parents/guardians, peers or professionals. We know that many students will struggle, as universities recognise that a student maintenance loan is unlikely to cover all outgoings. While a fulltime, undergraduate student can get a loan of up to 8,700 ( 11,002 for students in London) a year to help with living costs, universities estimate that students will need around 10,000. This means that even the most diligent of budgeters may come unstuck, which can have a big impact on a student s life both during and after university. We hope the results of our research will guide others on how to help students to be more financially savvy. The measures we have put in place with financial charity MyBnk also provide a useful guide for how to help students when they feel overwhelmed. Alex Mayes Corporate Social Responsibility Manager Campus Living Villages UK To understand more, we carried out research looking at how students manage their money, their ability to create and stick to a budget, and whether they understand the consequences of not fulfilling their financial commitments. For example, how do they handle a missed payment? Do they turn to the bank of mum and dad to bail them out or are they putting money to one side to help them cover unexpected bills? 2 1 Student Finance https://www.gov.uk/student-finance/continuing-fulltime-students

STUDENTS STRUGGLE TO MAKE ENDS MEET The financial burden of attending university is an ongoing concern for universities, accommodation providers and the UK Government. Our research shows they are right to be concerned; students experience financial difficulties on a regular basis. More than half (55%) say they are regularly left with little money before their next student loan instalment or income payment. Even more worryingly, 1 in 10 say they struggle to buy food and essentials. This could have a big impact on a student s wellbeing, academic performance and even put strains on friendships and relationships. Are you often left with little money a while before your next loan or additional income date (i.e. a job or regular payments from parents)? 13% Yes, I often struggle to buy food and essentials for a period of time 25% Yes, I often struggle to keep up with leisure activities and buying non-essentials for some time 17% Yes, I often borrow money from parents or other 45% No, I manage WHY ARE STUDENTS STRUGGLING? Students financial difficulties could be due to a lack of financial planning: not creating a budget or being unable to stick to one. Our research shows that 42% of students say they always create a budget when their loan comes in and another 41% say they do this to an extent. When your student loan comes in, do you create a budget to help you manage your money? 42% Yes 17% No 41% To an extent However, just one in six (14%) students say they always stick to budgets they have created. This suggests that although students are creating plans, taking the time to assess their finances and doing so on a regular basis, they find it difficult to see them through. This might be one of the reasons they come undone. If you create a budget, do you stick to it? 14% Always 4% Never 64% Most of the time 18% Once in a while Creating and keeping to a realistic budget can be difficult, especially when you have very little money, but not doing so can have significant consequences further down the line. It s vital that accommodation providers and universities support students to help them budget. 3

TECHNOLOGY COULD HELP STUDENTS TO CREATE BUDGETS BUT THEY RE NOT EMBRACING IT There are tools which can help students to create and stick to budgets. Although young people are very technologically capable, it seems they are not embracing technology. Students are relatively old fashioned when it comes to budgeting - 81% say they write their budget down manually or digitally. WHAT S THE IMPACT OF STUDENTS BEING UNABLE TO CREATE OR STICK TO A BUDGET? The inability to stick to budgets could mean big problems for students, leaving them unable to make payments for rent or credit cards. In fact, a quarter (25%) of students say they have missed a payment for accommodation, a credit/store card or similar. Of those, 39% turned to their parents for help, while 49% called the organisation to arrange an alternative payment system. However, more than one in ten (12%) say they ignored communications from the organisation. If you have missed a payment, what did you do to resolve the situation? 49% Called the organisation to organise an alternative payment system 39% Borrowed money from parents or other 12% Nothing - ignored communications from organisation Just 8% say they use a budget tracking app such as Mint and 11% say they use a digital banking app such as Monzo to help them budget. This shows that students perhaps either aren t aware of the technology they could use to help them keep track of their finances or aren t using apps to their full potential. One solution could be better training on how to use digital tools to help create and stick to a budget. The issue of not knowing what to do when a payment is missed is particularly marked when it comes to paying for student accommodation. Half (50%) of students say they wouldn t know who to speak to if their accommodation arrears got out of control. And a quarter (24%) are unaware that not paying rent arrears can lead to a court order for eviction. Many students, therefore, could find themselves facing serious financial consequences in later life, simply by not knowing how to manage their money now. Not keeping up with payments could be a permanent black mark on their credit rating, something which students are unlikely to pay much attention to during their university years. Would you know who to speak to if accommodation arrears got out of control and you were unable to pay? 49.8% Yes 50.2% No 4

SOME STUDENTS MIGHT BE MORE FINANCIALLY SAVVY As we ve seen earlier in this report, students can find it difficult to manage their money. This is a common perception in the media, which often features stories of them splashing their cash on designer goods, expensive gym memberships and generally living beyond their means. Our research shows that for some this may be the case. However, there are others who are much more financially savvy. Our research reveals that nearly 2 in 5 (38%) of students manage to save money they get from a student loan or income consistently. Do you save any money each month or income cycle (i.e. loan day)? 38% Yes 24% No 38% Sometimes Given the current high costs of living, this is a good indication that students can be very conscientious and know some of the dangers of spending more money than they have. More than that, it also shows that some students are potentially thinking about their long-term future and trying to prepare for life after university. A university education used to be a guarantee of a good job, but that is no longer the case. Some students are perhaps more prepared for this reality than others. 6

SUPPORT Providing support Our research reveals that although some students might be financially savvy, there is an urgent need to provide more support and signposting for others who may be at risk. That s why Campus Living Villages has partnered with financial charity MyBnk to develop a new training and workshop programme called #MoneyHacks, which is tailored to university students who have moved away from home for the first time. The pilot programme launched at Student Village University of Bedfordshire accommodation at the start of this academic year and includes: STAFF TRAINING Working with staff to ensure they are confident in spotting and responding to signs of financial difficulty by guiding students to suitable support, whether they are already struggling or want to put measures in place to avoid future issues. FINANCIAL WORKSHOPS Providing workshops at the start of the academic term which cover a wide range of points income, outgoings, and budgets. Additionally, providing workshops designed around the specific needs of those in debt, enabling them to take control and take steps to improve their situation. INFORMATION LEAFLETS Distributing our #MoneyHacks information leaflet, provided through our My Village Guide portal, which gives students more advice and guidance on managing money. NEXT STEPS Once the trial in Bedfordshire has concluded, we will assess its impact. If it s successful, we plan to roll out the #MoneyHacks programme to the rest of our Villages. We hope that the partnership with MyBnk will allow us to move beyond reactive measures for students who are already in financial difficulty towards proactively helping all our residents to avoid getting into debt. Producing budgets, keeping track of credit cards and loans and putting money into savings, can easily be forgotten as other things impact on students lives. Academic studies, socialising, and keeping fit can take priority and cause students to put money matters to one side. However, how students handle their financial affairs will have a big impact on all areas of their lives. It is crucial that we continue to provide additional support to those who are struggling, as well as helping others to proactively manage money matters. 7

contact@campuslivingvillages.co.uk Campus Living Villages UK Digital World Centre 1 Lowry Plaza The Quays, Salford, UK M50 3UB 4