Post Office: Students need budgeting lessons

18 October 2005
Students are unrealistic about their spending habits and do not plan their finances, says a report from Post Office Banking.

The bank found that almost half of students said they would only spend around £40 during Freshers' Week, a well known student event, and a third have not planned a weekly budget for spending while they are at university.

A spokesperson for the Post Office Bank said: "What students may not realise is that the Post Office offers a fee-free cash withdrawal service that lets you withdraw exact amounts, rather than rounding up to the nearest £10 - a useful budgeting tool that could help to manage finances throughout the year."

The bank found that students often unwittingly overspend because they round up the amount of cash they need instead of taking out the exact amount - and sticking to it.

According to the Post Office Bank, three-quarters of 18 to 24 year olds prefer to use ATMs to access their cash.

However, the bank found that students often take out more than they need at cash machines, meaning their budget is ruined.

The bank also offers a full range of services geared towards students, including home insurance and bill payments services.

To read more about Savings Accounts, click here.

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