University Students' Spending Habits: Where Does The Money Go?

University students' spending habits are a topic of interest for many, from financial experts to parents and students themselves. While some students are funded by parents or relatives, many struggle to afford basic necessities on top of tuition fees and student loans. Students often have difficulty differentiating between essential and non-essential purchases, which can lead to reckless spending and debt. Understanding university students' spending habits can help them make informed financial decisions and plan their budgets effectively.

Food and drink

The cost of food for university students varies depending on their dietary preferences, with vegan diets being cheaper than meat-based diets. For example, a vegan diet cooked at home averages $281 a month. Additionally, the cost of groceries varies by state, with Hawaii having the most expensive grocery bills for college students and Wyoming the cheapest.

Students who opt for coffee from cafes or coffee shops spend on average $20 or less each month, while those who make coffee at home spend around $15 a month. Binge drinkers can expect to spend upwards of $96 a month on alcohol, which can significantly impact their monthly grocery budget.

The social aspect of eating and drinking plays a crucial role in students' spending habits. One student shared that they spend more money eating out with friends due to the lack of cooking facilities in the dorms, and another student stated that they enjoy buying food items because it is often a social event.

Students' food and drink expenses can be influenced by various factors, such as the availability of cooking facilities, the desire for social interaction, and the convenience of eating out or ordering takeout. While some students may opt for cheaper options or try to limit their spending, the overall cost of food and drink can be a significant financial burden for university students.

Socialising

According to a poll by threestreamsmedia, 63% of students spend their money on going out. Another source estimates that students spend £51 a month on average, which is more than double what they spend on course materials. This amount can vary depending on several factors, including location and drinking habits. For example, a student in London shared that they spent a few hundred pounds during Freshers' Week, while a student in Liverpool spent about £15 on a night out, including pre-drinks. Not drinking will definitely save you money, and there is often less pressure to go out as the novelty of being able to go to bars and clubs wears off.

To manage your budget, it's recommended to find out the prices of food and drinks at the student union, pubs, and bars around your university. Student bars are usually cheaper, and drinks and food are quite affordable. You can also save money by buying drinks from supermarkets. Additionally, student discounts and promotions can help reduce the cost of socialising.

When it comes to budgeting for socialising, it's important to be mindful of your spending habits and priorities. Some students allocate a fixed amount per week or per outing, such as £20-£30, while others set aside a percentage of their income. It's worth noting that socialising expenses can vary from person to person and can include costs like food, drinks, entrance fees, and travel.

Housing

On-Campus Housing

Living in a dormitory on campus offers convenience and a sense of community, but it often comes with a higher price tag. On-campus housing typically includes the cost of the room, utilities such as electricity and water, as well as additional expenses such as maintenance and cleaning services. Some universities also require students living on campus to purchase a meal plan, which can further increase costs.

Off-Campus Housing

Students who choose to live off-campus may have more independence and flexibility, but they also have to consider additional expenses. Off-campus housing typically involves paying rent, utilities, and internet bills. Students also need to factor in the cost of furnishing their apartment and purchasing household items like kitchen utensils and cleaning supplies.

Factors Affecting Housing Costs

The location of the university plays a significant role in housing costs. Students in big cities like New York or San Francisco often face higher rents than those in smaller towns or rural areas. Additionally, the popularity of a college town can drive up housing prices, as more students compete for limited accommodation.

Strategies for Reducing Housing Costs

To reduce housing costs, students can consider sharing an apartment or renting a room with roommates. Opting for on-campus housing or living in a more affordable neighbourhood can also help lower expenses. Taking advantage of student housing resources provided by the university, such as graduate housing or family housing, can also alleviate some of the financial burden.

Impact of Housing Costs on Students

The high cost of housing can have a significant impact on students' lives, affecting their mental health and academic performance. Some students may need to take on part-time jobs or apply for financial aid to help cover their housing expenses, which can result in a heavier workload and increased stress.

University Responses to Housing Costs

Some universities are taking steps to address the issue of rising housing costs. For example, the University of Texas at Austin is building more housing, including new graduate apartments and additional undergraduate dorm beds. Other universities may offer affordable housing options specifically for students or provide resources to help students find suitable accommodation.

Travel

For example, a student in Birmingham, UK, mentions that they rarely spend money on transport, except when exploring areas outside the city, for which they buy an all-day bus ticket for £4.50. In contrast, a student at the University of California, Berkeley, in the US, spends around $210 a week, which includes gas for their car.

Students who own a car need to consider additional costs such as insurance, maintenance, petrol, and parking fees. These expenses can add up quickly, so it is essential to factor them into the overall budget.

When it comes to longer journeys, such as travelling home or taking day trips, booking in advance can often result in better deals. Additionally, travelling by bus is generally cheaper than by train, so students can save money by opting for bus travel when possible.

Overall, travel is a necessary expense for university students, and by making informed choices and taking advantage of discounts, they can minimise their travel costs and maximise their budget for other expenses.

Entertainment

Streaming Services

The multitude of streaming services available today can result in unnecessary costs, as students may subscribe to multiple platforms to access specific shows or movies. To save money, students can opt for bundled services, take advantage of student discounts, or share accounts with roommates.

Social Activities

Socialising often revolves around food, with students spending money on eating out, takeout, and coffee. Students also spend money on nights out, including attending events, going to bars, and seeing movies or live performances with friends.

Hobbies and Leisure

Hobbies and leisure activities can include reading, gaming, and sports. Students may spend money on books, video games, and sports-related expenses such as gym memberships or tickets to sporting events.

Budgeting

While creating a budget is important, the challenge for university students is sticking to it. Students should be mindful of their spending habits and differentiate between essential and non-essential purchases to avoid reckless spending.

Frequently asked questions