May 25 2013 Latest news:
Ed Foss, Senior writer
Friday, October 8, 2010
Plan carefully to keep student finances in check or the impact could last for years
The Bank of Mum and Dad has come under increased pressure over the last few years when it comes to ‘uni’, so it is of little surprise that new research has shown more than two-thirds of parents of undergraduate students have concerns about providing for their child.
A third of parents said they were “very” or “extremely” concerned according to the research published by the Consumer Financial Education Body (CFEB).
Students clearly need to be equipped to manage their money at university.
However, the CFEB research revealed new students starting university were unaware of some very important money facts, and may end up paying a heavy price.
These included a third of youngsters being unaware doorstep lenders were usually more expensive than most other lenders - the average annual rate on a doorstep loan is an eye watering 359pc.
And some 35pc did not know their car insurance must be in their own name and address, not their parents’.
CFEB, an independent organisation set-up by the Financial Services Authority to help people better understand financial matters, has launched a campaign to help new students.
The campaign, at www.moneymadeclear.org.uk/flyingstart, has been designed to guide parents as they try to equip their child to cope with money matters at university.
Tony Hobman, chief executive of CFEB, said: “Living away from home for the first time and managing on a budget can be challenging for students and their parents too.
“But parents have a really important role to play in helping their son or daughter make the transition to financial independence - talking about money and encouraging them to keep track of their spending is a great starting point.
“Our campaign provides useful tips and tools to help parents with these conversations, and nudge new students towards healthy financial habits.”
Flying Start provides free advice about budgeting, planning for the unexpected and how to shop around.
Students may also consider using the newly launched UsefulStudents.com, a job broker site set up to help them avoid hitting the average estimated debt of £25,000.
The site operates in 20 major university cities, linking students to prospective employers. It was founded by brothers and former Edinburgh University students Andrew and Mike Howes.