University is a fantastic opportunity for anyone, but with cost of tuition fees at the highest, as a parent, it’s hard not to worry about the financial effects.
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A new online YouGov survey commissioned by Ukash, revealed only 16% of parents are confident in their kids ability to manage money at university.
One in four parents, 26%, who has a child aged 16-21 at university or one planning to go in the next few years, said they are concerned that their child will struggle to budget properly throughout University and worry they will end up in debt.
Whilst more than half, 58%, of parents who responded to the survey indicated that going to University is all about getting a good qualification for the future, 55% feel that learning to manage money effectively is a valuable end result.
Parents are also stressing about their child’s future after graduation with 29% of parents thinking their offspring won’t be able to get a job when they graduate. 15% said they don’t mind if their child gets into debt as long as they get a good degree.
Miranda McLean, Marketing Director of Ukash, said: "University is a fantastic and unique time to make the most of new-found independence, but this lifestyle can all-too-easily lead down a slippery slope to long-lasting debt if outgoings aren’t managed carefully.
"What is also likely to affect how concerned parents are is that many, if not most, students rely on the ‘Bank of Mum and Dad’ at least to some extent in order to get them through uni."
She added: "With high tuition fees and the general increased cost of living, this can be a tough time for parents, which is why we believe it could make sense for those looking for a way to help their kids manage money more effectively whilst away at uni, to consider sending smaller amounts regularly rather than one lump sum at the beginning of the semester."
An effective way for students to budget effectively is for them to use a prepaid card topped up regularly with small amounts sent by their parents. The Ukash prepaid MasterCard® is a good example of a money management tool students can use to help manage their budgets.
It can be topped up with cash or via a bank account. And because it is a MasterCard® it can then be used to spend online or in shops, bars and restaurants, and helps students stick to a budget and avoid surprise bills.
This tactic reduces the likelihood of students getting into debt, as they will have a regular supply of cash but not be tempted to splash out and spend everything in the student union in one go.
"Money management skills have life-long implications and should not be under-valued," continued Miranda McLean. "For many people the first real experience of this comes when at university so it’s vital for parents to ensure their kids make the most of it and benefit from the experience as much as possible.
"Parents providing cash on a prepaid card, little-and-often, could be a useful tool to help with this. Ukash can also be used by international students, or those from the UK who are studying abroad, to receive money via our new Money Transfer service."
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