Student and Graduate Publishing

The Top 15 Student Money Mistakes

Tuesday, 28 October 2014 12:04

Just over half (53%) of current undergraduates think they are managing their finances well

•14% think they didn't choose the right student bank account, 11% admit they went for the best freebie rather than the best account

•Top tip from current undergraduates to new students - ‘make a budget and stick to it'

•Maths students come top of the class in managing their money, but 30% admit to not choosing the right student bank account

A new survey looking at how undergraduates are managing their finances reveals that only 53% of students think that they are managing their money well; nearly one in five (19%) say they are seriously worried about their financial situation.

The study by Gocompare.com Money was conducted with 1,000 current UK students about to go into their 2nd, 3rd or 4th year of university, and provides a snapshot of the financial realities at university and includes students affected by the most recent changes to tuition fees in England.

Student money mistakes:

Nearly a quarter (23%) of those taking part in the survey, say they have made a lot of mistakes managing their money. While overspending on nights out, food and new clothes and impulse purchases top the list of mistakes, many students admitted to making errors when picking a student bank account and in losing track of their spending on credit and other plastic cards:

Ranked Top 15 Student Money Mistakes %

1. I spent too much on nights out = 29%

2. I spent too much on take-aways and ready meals = 28%

3. I spent too much on clothes = 25%

4. I made too many impulse purchases = 20%

5. I lent money to friends and didn't get it back = 18%

6. I failed to budget properly = 17%

7. I didn't choose the right student bank account = 14%

8. I didn't shop around for the best deals = 14%

9. I paid too much for my accommodation = 14%

10. When choosing a student account, I went for the best freebie rather than the best account = 11%

11. I lost track of my overall spending on plastic cards = 11%

12. I spent too much on credit cards = 10%

13. I paid too much for my mobile phone = 9%

14. I didn't have a pre-arranged overdraft or I went over my overdraft limit = 8%

15. I ignored credit card payments and incurred penalties = 8%

Student to student financial top tips:

When asked what financial advice they would pass on to people heading to university, undergraduates appear to have learnt from their money mistakes. Their top 10 tips were:

•Make a budget and stick to it (49%)

•Shop around for the best deals (47%)

•Don't use credit cards (39%)

•Avoid payday loans (37%)

•Don't ignore letters from your bank (35%)

•Be honest with your parents about your finances (33%)

•Don't lend money to friends (31%)

•Get contents insurance for your possessions (22%)

•Take care in choosing the right student bank account (21%)

•Talk to your bank or credit card provider as soon as you get into trouble (21%)

Gocompare.com has produced an online guide to student finances: www.gocompare.com/student-insurance/student-finance/

 

For more advice, click here