Helping students to cope with straitening times
Despite the inevitable worries caused by the spiralling costs of everyday living, students entering university this September are better equipped to manage their money than ever before, thanks to a national initiative from money education charity, Credit Action.
London, 12th August 2008 -- All of this year's entrants have already received a comprehensive Money Manual for Students in their UCAS welcome pack. This is the first stage of a four year programme to ensure that all young people attending university are better equipped to deal with finance. The Money Manual, updated annually, will be distributed to all would-be students until 2011, with the aim of helping two million young people to manage their finances better while at university and beyond. This ambitious project is being funded by Cattles plc.
According to Credit Action, money worries was already would-be students' number one concern even before increases in the costs of everyday living started piling up. National director, Chris Tapp, said:
"Half of this year's sixth formers cited managing finances as their main apprehension about going to university this September, while 39 percent worried about money being tight. Given the rises in the costs of everyday living since this survey was carried out, I would expect this latter figure to have increased by now. Students are in no way immune to rising food and utility bills.
"I hope, however, that no-one will be deterred from taking up their university place by such worries. Knowing how to budget, how to manage money and how to maximise income has never been more important and this is where the Money Manual comes in.
"It is our aim to arm students with the financial wherewithal which will allow them to get the most out of their university experience".
In order to monitor the effectiveness of the Money Manual, as well increasing overall understanding of the financial aspects of being a student, including differences in attitudes across sex, race and class and the impact of parents' financial support, the research will be on-going. To this end the anonymous sample of over 3,000 student applicants included in the initial survey has been signed up to take part in recurring surveys until 2011.
The main concerns of those applying for university this year were:
- 50 percent listed managing finances as their top concern about going to university, while 39 percent included money being tight;
- loneliness and concerns about workload and exam pressures were the second biggest worry, each being listed by 41 percent of the sample;
- the reputation of the university was rated as the most important factor in choosing a university, with the reputation of the course and the location of the university only slightly less important;
- although two thirds (64%) plan to use student loans as their main source of funding, almost half (49%) expect their parents to help out. Very few (5%) have no idea of their sources of funding;
- over half (54%) currently have a part-time job;
- parents are regarded as the best source of information about money advice, should it be needed although the vast majority (86%) said they had never needed it;
- being in debt was generally accepted as ‘just part of student life'.
Welcoming the initiative, Higher Education minister Bill Rammell said: "I want to ensure young people from all backgrounds can go to university, confident of the financial help they'll receive and armed with the knowledge to manage their finances responsibly.
"Nobody should be deterred from entering higher education or realising his or her potential because of a fear of financial difficulty. The Government is introducing a package of additional financial help to achieve this ambition including greater access to non-repayable maintenance grants.
"For many prospective students, entering university means managing their money for the first time. The practical and comprehensive advice contained in the Money Manual will help them to focus on getting the most out of their studies, safe in the knowledge that their finances are sorted."
Money Manual can be downloaded at www.creditaction.org.uk or copies requested from 0207 436 9937.
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For further information contact: Frances Walker (07771 788713) or Chris Tapp (07813 442569)
During office hours 0207 436 9937
Caption for attached photo
Bill Rammell, Higher Education Minister, discusses options for funding further university education with sixth formers at Southwark College. Left to right: Nadine Joseph, Sacha Carol and Tola James.
Notes for editors
1. Baseline research was carried out online between September and October 2007 among 3,000-plus sixth form students planning to attend university in a year's time. They were recruited from a random sample of households on the basis that they will complete two online surveys per year up to the completion of university courses.
2. Credit Action is a national money education charity (registered Charity No.1106941) established in 1994. It aims to teach people to manage money better and prevent over-indebtedness and uses a wide range of resources to this end. Credit Action also campaigns to encourage greater understanding of the need for more financial education and literacy. For those with debt problems, Credit Action offers a helpline through Consumer Credit Counselling Service, the UK's leading debt charity.
3. Cattles plc is a publicly quoted company offering non-standard finance products to the growing number of consumers who have difficulty accessing mainstream consumer credit. This includes a financial rehabilitation service to assist its customers to build their credit history and financial literacy.
Regulated non-standard finance products are essential for the needs of a growing number of consumers. It is estimated that the UK non-standard population of working age people will increase to 9.42 million by 2010, representing around 1 in 4 adults of working age.
