Students feel the pinch and take measures to combat the credit crunch

Students gearing up for the first weeks of term are feeling the effects of the rising cost of living according to new research from Abbey Banking1. A staggering 50 per cent plan to raise extra funds this term by selling possessions at sites such as ebay. This figure is in stark contrast to the general public, 22 per cent of who said they were considering selling possessions.

The traditional mid-week socialising and drinking is likely to be on a smaller scale this year with 40 per cent of students planning on going out less while 34 per cent plan on eating out less.

Fourteen per cent of students are also taking on second jobs to help them whilst at college or university. A further five per cent were even considering taking the extreme step of volunteering as a medical research subject compared to just two per cent of the general population.

Over half 58 per cent of students are buying fewer non-essential items such as CDs, DVDs and clothes, while nine per cent plan on using their car less. University union shops while a cheap source of food, may be worried about future trade with 32 per cent of students saying they plan on bringing a packed lunch to university rather than buying one whilst there.

Abbey Banking's research shows that there is also considerable evidence of belts tightening across the country as a whole with 84 per cent of Brits planning to cut back on non-essentials and shop smarter in order to save money. Almost two thirds 61 per cent of us are already taking extra care to make the most of offers and discounts when shopping, such as 2 for 1 deals, discount vouchers etc.

Steve Shore, Abbey Director of Banking, commented: "The majority of students living on a fixed income may find the coming months tough with the price of essential goods and services such as food and energy continuing to rise. Students more than ever will need to set themselves a strict budget and should ensure that they are shopping around for the best deals, this includes financial products such as the bank account they use."

Students opening an Abbey Student Account, can take advantage of £50 cash gift, as well as an interest rate of 4 per cent for balances up to £500 and an interest free overdraft which increases over the length of the university course, up to £2,000. In addition, if your University is part of the Santander Universities Network, you can open a Santander Universities Student Account, which pays an amazing 8 per cent interest on the first £500 in your account.

Students can open the account in a branch, over the telephone or via the website. Students will need to bring identification and proof of course with them to open an account.

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2008-09-23 15:23:40 © Moneyextra.com