Students not doing their financial homework

Students in the UK are not doing their financial homework, new figures reveal.

However, with almost two students in three gaining their first experience of paying bills while studying for their degrees, it is one of the best times to learn to manage money.

But new research from Post Office Banking shows that 30 per cent of students do not have a plan in place to work out how much money they have to spend.

And even the 42 per cent of students who do set themselves a budget do not expect to stick to it.

As for how they manage their money, 29 per cent simply take out the amount of cash they think will spend each week, although most (54 per cent) will round up to the nearest ten pounds.

The Post Office points out that people can go to them to withdraw cash for free, and that it allows customers to take out the exact sum they require, rather than having to round up to the nearest £10.

"Cash is still king for many students. Eight out of ten prefer to pay for food and drink using cash and a quarter use cash to pay their household bills," commented Graham Halliday, Post Office banking and financial services director.

"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."