UK students choose spending over saving

A YouGov Sixth Sense report on student lifestyle has found that students in the UK are much more likely to spend money than save it but credit cards aren’t the reason why?

• 66% of respondents held part time jobs to make university more enjoyable
• 62% say that they would turn to their parents for financial help
• 68% don’t have a credit card, despite the spending nature of UK students

Research on the world’s largest student network, The Student Room, shows that there are over 3000 posts discussing credit card options on the site.
There is a market to be taken advantage of as a credit card better targeted for students would have a positive impact on student’s credit rating, protect them against online fraud and in some cases provide discounts and cash-back.

Students are having to become more financially aware as tuition fee rises are iminent and further research on The Student Room shows that they are willing to spend time discussing the best bank account and credit card options with others. A poll has shown Natwest to be the clear favourite:

• 53% have a Natwest student account compared to 8% for closest rival HSBC
• Over 15,000 discussions about Money and Finance
• Over 2,600 discussions about Student Financial Support

Special offers such as Natwest’s 5 year student railcard offer and free travel insurance with HSBC have a big influence on which accounts students opt for and a similar model could be implemented for a new student credit card.

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