Students face high cost of living

Published:
18 August 2008
Topic:
News,Money,Current Accounts

New research into the costs faced by university students show that undergraduates are preparing for the most expensive academic year to date, with an inflation rate 50% higher than average.

The true inflation rate for undergraduates in England is almost 7%, compared with the Consumer Price Index which currently stands at 4.4%, according to the Open University's first Student Price Index survey.

The high figure is due to the fact that, compared with other households, students spend a higher share of their total budget on items which have risen in price fastest over recent years - goods such as food and drink, clothing, tobacco, personal care products, housing and travel, plus tuition fees.

Economist Alan Shipman, who produced the index, said: "Inflation hits different socio-economic groups in varying ways. In my research, students are certainly experiencing a higher inflationary rate because the cost of what they need to buy is among the highest categories of price rises.

"To say that this will be the most expensive academic year for higher education students to date would not be stretching it."

The index found that in July this year, the annual inflation rate for full-time undergraduates was 6.6%, compared with the 4.4% rate for all UK households.

This summer's graduates left university with debts averaging £17,000 according to a recent survey from independent research group, Push, and with inflation on the up, the situation could be even worse in the years to come.

For many students managing bills and day-to-day finances is something they have had little experience of but those who get into the habit of budgeting are likely to cope better than those who spend without thinking. If you're about to head off to university, plan ahead. Our article 'Who can students bank on?' gives a run down of the new student current accounts available to next year's freshers.

Related Links

Rate This Article

Click on a star to rate this article.

2 ratings

Email a Friend

Let a friend know about this news item with an email containing a link to this page, and a customised message.

 *
 *
 *
 *

 

 *

This helps us prevent automated programs from using and slowing down our services.

Rating

Rated 2/5 (average from 2 ratings)

Rate this now

Related News

More News...

Compare Current Accounts

Compare a range of UK current accounts including basic bank accounts.

Compare Current Accounts Now

Hot Topics in our forum

More Hot Topics

Rss Feeds

Email a friend

© Moneysupermarket.com Ltd 2012