Students staying with parents to save cash
(19 July 2007)

A third of young people starting university plan to live with their parents to avoid running themselves into too much debt, research by Lloyds TSB has revealed.

With students now facing increased course fees of up to £3,000 a year, 31 per cent said that if they did not live at home, it would be too expensive for them to go to university.

More than a quarter claimed that they were worried about managing their money at university and over a quarter said that a part time job would be essential to support them through their studies.

However, six out of ten believe that the independence they will get from living away from home is worth the financial burden and a quarter said that living at home would not be an option because the university they are going to is too far away.

Independent financial expert Alvin Hall said: "Many students have the ability to shut down or seal off that part of their brains that know they must handle their money rationally and responsibly.

"This deliberate denial can only last so long before one has to begin dealing with financial problems that are now much bigger, and probably more desperate.

"The result can be stress that takes your mind off your studies, humbling request for cash from the bank of mum and dad, and, if credit is involved, huge interest charges and a ruined credit rating. This is not a good way to begin adult life after university," he added.