One in three students not in control of their finances

One in three full time students feel occasionally or constantly out of control of their finances (35 per cent), according to research by GE Money.

Worryingly, one in ten have no idea of their financial position, constantly feeling their finances are out of control (11 per cent). The findings are released as this year's intake of students settle in to university.

It also revealed that over two thirds of students turn to friends or partners for financial advice (68 per cent) and one in four look to advice sites on the internet (27 per cent). The MoneyBasics financial advice site - moneybasics.co.uk - is one of these sites and offers simple, clear and independent advice for a wide range of consumers - from students to retired people - on handling money and planning for the financial future.

The research undertaken by YouGov for GE Money highlights the financial attitudes and experiences of full time students in major cities across the UK, and examines the subject of debt.

The research reveals high levels of debt from loans and credit cards, with half of all students having debts of over £5,000, one in three owing over £10,000, and four per cent owing in excess of £20,000. Looking closer at student loans, the vast majority of students use them to live on and to pay for tuition fees, with 41 per cent supplementing the loan with income from a job, and 40 per cent receiving additional financial help from their parents.

Of those with a student loan, only a quarter of students believe they will pay it off in full within five years of leaving university and joining the workplace (24 per cent). Rather worryingly, 38 per cent of students believe they will still have loans outstanding ten years after leaving full-time education, 15 per cent of which will still be outstanding after 15 years.

The research goes on to reveal that a high proportion of students are not clear on the amount of interest they pay on their debts with 35 per cent unaware of the amount of interest they are paying. This is high in comparison to all adults interviewed in major cities across the UK, which stands at 21 per cent.

A spokesperson for moneybasics.co.uk, commenting on the research findings said: "For many young people, going away to university is the first time they have to be responsible for their own finances, and many will really feel the financial shock and responsibility of being away from home. We would encourage all those students arriving at university for the first time next week to start as they mean to go on - to mange their money from day one. It is important to set budgets and stick to them. University should be a fun positive experience, however, all too often, it can turn out to be a financial minefield".

The research does, however, show some positives and reveal that students do have responsible intentions with over half (59 per cent) claiming they would save a £3,000 inheritance gift, 21 per cent saying they would use it to pay off debts and only 12 per cent claiming they would treat themselves with it.