Students are increasingly opting to go to a university close to home in attempts to save money by continuing to live with their parents, new research from Lloyds TSB student banking has revealed.
According to the research, more than one in four young people due to start university this year will be forced to live with their parents as finances become a huge concern when it comes to studying.
Of those students who choose to stay at home, one third said that without that option they would not be able to afford to further their education at university; 62 per cent of those tied to home through finances said they would be happy to move out sooner if money was not an issue.
As university is often the first time young people will manage their own finances and create a student budget
, it comes as no surprise that a quarter of soon-to-be-students are worried about their money management skills.
Surprisingly, 23 per cent of people questioned said they had received no guidance with student financial planning
and creating a budget. Furthermore, it appears that the credit crisis is making matters worse for student finances as 65 per cent students saying they would find it hard to cope at university if the cost of living continues to rise.
On the other hand, the 62 per cent of students intending to live away from home throughout university think that the financial implications are worth it in exchange for the independence gained.
Director of current accounts
at Lloyds TSB, Catherine McGrath, said: "Going to university isn't just about getting good grades, it also has to make financial sense. For many, living at home or taking on a job is a sensible option to help cut down the cost of their studies.
"However, university is also a great time to spread your wings and get a little life experience. By making the time now for some financial planning and careful budgeting, cash-strapped students should be able to enjoy further education without worrying unduly about making ends meet."
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