By Claire West
Research from a YouGov SixthSense / studentbeans.com student lifestyle report reveals that a quarter of students in the UK do not have any form of savings, either through a savings account or an ISA.
Only 28% of students in the UK have both a savings account and an ISA, suggesting that many opportunities exist for proactive financial services providers to encourage students to start saving from a young age.
Current cash flow rather than saving for the future seems to be priority for students: 66% of respondents say they need to have a part time job at university in order to make ends meet and have a good time. 62% also say that they turn to their parents to help them financially through university. However, few students (11%) have taken out a personal loan, on top of government-backed student loans and generous student account overdrafts.
Surprisingly, 68% of students do not have a credit card, creating a significant opportunity for banks to run a campaign targeted at students to highlight the benefits of taking out a credit card. Having a credit card as a student builds your credit rating, insures against online fraud, protects your purchases, earns cash-back and in some cases, loyalty card points and discounts.
Commenting on the results, James Eder, Commercial Director of studentbeans.com said,
“The perception that students are poor and that increasing debt may curtail their spending power is mostly false. Our study shows that most students draw on extra finances from parents and/or a part-time job to enjoy themselves at university and maintain a good standard of living. There are also opportunities for financial services providers to run student-focused campaigns explaining the role and benefits of credit cards, ISAs and savings accounts and at the same time increase sales of these products in the student market.”