1.6 million students struggle with finances

More than 1.6 million UK students lack confidence in their understanding of personal finance, research reveals.

According to a survey conducted by Blackbullion, half of students (51 percent) run out of money before their next loan installment.

44% of students start university with no savings and one in seven (15%) are already in debt.

Findings also reveal that only a tenth of students (9%) are confident in their ability to manage their personal finances and 83% feel they need better financial education.

Blackbullion found that three in five students (61%) did not understand the repayment terms of student loans when applying.

Nick Buxey, a first-year Italian and English student, said he used his loan to pay for his accommodation as his parents have three children to support through university.

“I ate into my savings for the first term, but then in the second term I was forced to get a student job”.

“Warwick may be cheap for Londoners, but it is not as a university,” he added.

Sarah Marr, a French Studies finalist, said that her parents give her money weekly on top of her student loan.

“The main problem with the student loan is that our accommodation costs more, meaning that a lot of people struggle if their parents cannot help out”.

Sarah said that she especially struggled to keep a budget during her year abroad.

Vivi Friedgut, founder and director of Blackbullion, said: “Students do not need to be in the dark about their financial situation. The summer provides a great chance for students to get a head start on managing their finances before term time by thinking about a basic budget”.

Blackbullion aims to help students gain better financial and employment skills.

Blackbullion commissioned research from Voxburner, who interviewed 553 UK university students between January 21 and May 23 2014.