Cash-strapped students living at home
More than one in four young people starting university this year will have to live with their parents to save money, according to Lloyds TSB.
The figure represents a 4% dip from the 2007 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 say that living at home is an effective tool for managing their debt. However, 62% of those who are planning to stay at home admit that if money wasn’t an issue, they would prefer to fly the nest sooner.
Young people put their finances high on the list of university concerns. A quarter are worried about managing money while they are at university, while 13% admit that this is the first time that they will be setting a budget and holding the purse strings.
Just under a quarter confess that they haven’t received any guidance to help them with their financial planning.
Catherine McGrath, director of current accounts at Lloyds TSB, said: “Going to university isn’t just about getting good grades, it also has to make financial sense. For many, living at home or taking on a job is a sensible option to help cut down the cost of their studies.
“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.”