Students at Scottish universities are more financially savvy than their UK counterparts, according to new research commissioned by the UK’s largest specialist student lender, Future Finance.
Only 20% of students in Scotland do not consider payday loans and credit cards as debt, compared to 33% and 35% in London respectively.
What’s more, Scottish students also proved to be the most clued-up when it comes to understanding financial jargon. Just 7% of those surveyed had never heard of APR - compared to 18% in Wales.
Additionally, 61% of those studying in Scotland would class themselves as having a ‘good’ overall understanding of finances, compared to just 53% of those in London.
The research also unveiled that parents had the biggest influence on the financial habits of Scottish students.
However, Scottish students do feel financially vulnerable when it comes to living off their government student loan. 68% of those studying in Scotland do not consider the amounts enough to live comfortably, compared to 59% in Wales.
Brian Norton, CEO and co-founder of Future Finance, comments: “It is reassuring that Scottish students are particularly strong when it comes to understanding financial jargon – and even more so that they correctly recognise payday loans as debt.
“Going to university is the first time many young adults have needed to properly budget, manage the household bills and make some tough decisions with their money. It’s not easy and it’s no wonder we hear of so many students suffering a financial meltdown.
“In a crisis, many turn to payday loans as a way to survive financially. Our research suggests that students in Scotland have a greater financial awareness than most so hopefully they’re less likely to go down that path. I just wish students across other parts of the UK were as financially literate.”
Future Finance is the UK’s largest specialised private student lender, enabling undergraduates and postgraduates to fund their university education. With tuition fees at record levels and inflation on the rise, it is more important than ever that students go to university with a solid understanding of basic finance so they can budget responsibly and avoid unsuitable forms of credit.