Money mistakes dominate students’ biggest regrets

New research from Nationwide has revealed the biggest mistakes made by today’s students at university – with money worries topping the list far more than they did for previous generations.

Notably, current students are significantly more likely than parents to regret financial mistakes made, not budgeting or tracking spending  (20%), and overspending (18%) – a likely sign of the mounting cost pressures facing today’s student population, and perhaps evidence that today’s students are more attuned to their own spending habits than previous generations were at the same age.

However, there is a broad consensus between both generations that one of the biggest regrets is, or was, leaving assignments until the last minute (19% for current students; 17% for parents). They are also tied on not saving for emergencies (both 16%) and overspending on nights out (18% vs 16%).

The research shows nearly four in ten (39%) of current students surveyed spend between £150 and £300 a week on food and drink this is on top of rent and utility bills. It’s little wonder, then, that financial pressure and money-related fallouts rank so highly among today’s students, with food shopping and eating out now representing one of the highest single costs of university life. In fact, 60 per cent of current students say that they are spending more than they had expected or budgeted on food overall.

Tom Riley, Director of Retail Products at Nationwide Building Society, said: “Our research shows just how much more financial pressure today’s students feel compared with previous generations, which is why we’re continuing to offer real, practical support through our FlexStudent current account offer. Whether it’s an unexpected bill or a well-earned takeaway with new housemates, we want students to start university on the best possible financial footing. FlexStudent is available to new and existing students starting an undergraduate course, and can be opened via the Nationwide app or in branch.”

Tom Allingham, Student Money Expert at Save the Student, said “Whether you’re starting university for the first time this year, or heading back after your summer break, this research is a great reminder for all students to think about their finances before the new year starts.

“Six of the top seven mistakes students make are related to money, and while it’s undoubtedly a financially tricky time to attend uni, there are steps you can take to be better prepared.

“Working out a budget in advance of the uni year is the single biggest thing you can do. Even if you’ve not yet started and only have predicted costs, getting at least a rough idea of what shortfalls you might have is much better than finding out a few weeks in! This way, you can discuss the possibility of extra contributions from your parents, plan where you can cut back, or start looking for part-time work before everyone else.

“Until the government increases maintenance funding to a liveable standard, funding student life will always be tough. But if you take the time to plan your finances, you’ll give yourself a much better chance of making ends meet.”

Top 10 mistakes at university – current students:

• • 1. Not budgeting or tracking spending – 20%
    2. Leaving assignments until the last minute – 19%
    3. Overspending on nights out – 18%
    4. Relying too heavily on overdrafts/credit – 17%
    5. Not saving in advance – 16%
    6. Not saving for emergencies – 16%
    7. Spending the entire student loan in the first few weeks – 16%
    8. Not asking for help from tutors/lecturers – 16%
    9. Living with incompatible housemates – 16%
    10. Letting living space become messy or stressful – 16%