Students in their final year at university are most likely to rely on paid employment to reduce their financial burden.
According to new research by HSBC and the National Union for Students (NUS), 40 per cent of students admit to feeling more financial pressures in their final year, making them more likely to work to cover the cost of added expenses, compared to 26 per cent of first year students.
HSBC and NUS believe that a possible explanation for this is poor financial decisions made in their first two years at university, combined with extra costs such as materials for dissertations.
Lucy Payne, HSBC's youth and student manager, is not surprised by this statistic, she said: "It's so easy for students to lose track of their expenditure, especially if they receive a lump some of money at the start of their studies. Students who don't budget properly and spend their whole student loan or max out their overdraft facility in the first years may find that they need to take on extra work to cover costs in the final year."
She added: "The final year at university is such an important time for students and they should not have the distraction of worrying about their finances."
HSBC and NUS are advising students to take active measures to reduce their financial concerns by budgeting appropriately, choosing a suitable bank account and by checking bank statements on a regular basis.
The research also found that 59 per cent of students rely on financial support from their parents while around one in three students said without this additional support they would not be able to attend university.
NUS president, Wes Steeling, is concerned universities continue to demand higher fees despite the average student graduating with £23,000 worth of debt and believes measure should be taken to reduce student debt.
"The forthcoming review of university funding must look at alternatives to the disastrous current system of top up fees. We are in danger of condemning an entire generation to a lifetime of debt," he said.
Apply for an HSBC student account today»
© Fair Investment Company Ltd