Money Alert: Students not so clever when it comes to their money

 

Simon Read
Friday 27 June 2014 16:43 EDT
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Students may be not so clever when it comes to their money. More than 1.6 million of them lack confidence in their understanding of personal finance, according to a new study.

The money-management expert Blackbullion warns that the knowledge gap could lead people into financial difficulties. Its research showed, for instance, that three in five students don't understand the repayment terms of student loans.

Meanwhile, almost half of students go to university with no savings and 15 per cent actually turn up for higher education in debt.

Vivi Friedgut, founder of Blackbullion, said universities should help students make better-informed financial decisions.

"Universities have a duty of care to help students address money worries and avoid crippling debt," she argued.

But she also said students can help themselves. "Students don't need to be in the dark about their financial situation. The summer provides a great chance to get a headstart on managing finances before term time by thinking about a basic budget."

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