What are students spending their money on?
The latest student survey carried out by Accommodation For Students shows how students decide their budget, the top 10 items that take up student expenditure and their main sources of income during study time.
It comes as no surprise that accommodation is the highest cost for students, but as the cost of living is still an issue the rise has increased the price of many other student necessities.
Top areas of expenditure
2. Groceries
3. Bills and utilities
4. Course fees
5. Health and wellbeing
6. Travel
7. Entertainment/going out
8. Mobile phone
9. Clothes
10. Holidays
Main income sources
Student maintenance loans for the majority of students tends to be the biggest form of income at 50%.
Parental contribution (25%) is another key source of money, especially considering not all loans cover rent these days. At least until some students branch out and find work if their university timetable allows it or if they study part-time.
Gap years help a lot of students to build up some cash and as a result can boost the savings account to a reliable 10% of student income.
Then part-time work covers 9% and grants or bursaries are 6%.
When do students decide their budget?
The hardest decision for students alongside finding accommodation, is knowing how much to expect to pay and on top of that any other costs they may have to factor in. For those leaving home for the first-time it can be incredibly difficult to know how to set a budget at all.
68% of student participants admitted they decided their budget before they even started looking for accommodation.
With 25% not setting a firm budget until after they started searching.
Only 7% don’t decide a budget at all.
This means that over a third of students are starting their accommodation search without an idea of budget in mind.
Most (63%) then had to increase their budget whilst searching.
Reasons for budget increases
With average rent costing £189 per week, this has increased the average budget by £36 a week.
A shortage of accommodation, as well as wanting better quality rental options, are among just a few of the reasons why students have had to recently increase their budget.
Friends having higher budgets (and possibly wishing to live with them) is another reason. Changing accommodation type has also been noted as an explanation for increasing budgets.
Students have noticed +19% average additional accommodation costs, which showed they weren’t allowing enough when setting their budget.
