30% of students currently attending university will move back in with their parents after they have completed their studies, according to research from HSBC.
For those starting university this year, 49% expect to live with their parents. Of those who intend to live at home, 78% said it was in order to save money and minimise their debt.
The research shows that current students spend £145 on average each week, not including tuition fees. 66% of current students say their weekly living cost is more than they expected before they started university. The biggest weekly living expenses that students hadn’t counted on were food (46%), rent (42%), and utility bills (32%) – all of which were more expensive than expected.
66% of this year’s students plan to stay on top of their finances without visiting a bank branch at all, preferring to do their banking online or via mobile or telephone. 44% say they’ll use online banking via a laptop or desktop.
George Charalambous, head of mobile banking at HSBC, said: “It’s good to see that this year’s students are realistic about the financial pressures of university, and are already thinking about their financial situation when they graduate.
“Current students say university life is more expensive than they expected, so it’s important students keep on top of their finances, whether that’s by using a mobile app to check an account balance before making that purchase, or by asking their bank for advice and support on how to manage their money.”
This year’s students expect their debt to be £20,648 on average by the time they graduate. However, students using a full tuition fee and maintenance loan this academic year would be left with £43,665 of debt after a three year course.
HSBC said this suggests some students are significantly underestimating the amount they will owe, especially if they don’t have access to additional funds from their parents.
