Students mismanaging money could see universities losing up to 1 in every 10 students every year. It will come as no surprise to you, to hear us say that, we think upskilling students and getting them more financially savvy is key. We are on a mission – to upskill people for the 21st century through better money management, employability and enterprise training. Ask us how!

1. 1
Presents
KEY
CHALLENGES
(and how to overcome)
4
Up-skilling people for the 21st century through
Better Money Management
Employability
Enterprise Training
Epic
learning
Effectiveness Efficiency Engagement

2. Introduction
We’ve all known for some time that money is an
issue for students.
Tuition fees are driving up debts and students and parents are
increasingly focused on value for money. But there is a clear
mismatch between that and how students are managing their money
on a daily basis.
We’ve done some research which shows that this mismanagement
could see you losing up to one in 10 students a year which is
significant number and could have a significant impact on your
institution’s finances.
Clearly it will come as no surprise to you to hear us say that we think
upskilling students and getting them more financially savvy is key but
this shows just how important it really is.
We hope you find it useful and look forward to your thoughts
and feedback.
Read on to hear more.
2 4 KEY CHALLENGES

3. 3
Challenge #1:
Retention
‘The cost of
acquiring new
students is
considerable while
retaining them
represents a far
lesser investment ’.
Results from our survey show that 25% of students
are worried about how they will be able to afford to
continue with studies and 9% are likely to drop out
of university because they cannot afford to
continue with their studies.
That means almost half a million students worrying about how they
will afford to continue their studies.
The focus on NSS results and the increasing expectations of
students makes retention a key matrix. As such reducing the rate of
withdrawal and enhancing the student experience is a key ambition.
Since the cost of acquiring new students is considerable while
retaining them represents a far lesser investment. The average
university non-completion rate (2011) was 7.4% and we are
concerned that students feel they have to resort to dropping out of
university as a financial solution.
Apart from demonstrating commitment and long-term pastoral care
to students’ wellbeing; enhancing the value students get out of their
university experience means they can transition into the careers they
desire or the environment they seek.
Students shouldn’t live in fear of their
financial future, but instead be better
educated about financial management.

4. Challenge #2:
Ambivalence
Despite a broad awareness that current spending
habits impacts their future finances (59%), almost
a third (30%) of students say they’ll ‘worry about it
later’ and 29% say that they don’t think about the
future as they live for the now.
While students are clearly worried about money, and debt – the
recent protests demonstrate that pretty clearly – our results indicate
that there is a disconnect between awareness and action.
With forecasted average debt upon graduation of £44,015 it is critical
that students keep an eye on the horizon and be aware that financial
decisions made on campus can have repercussions long after they
have left.
The challenge is therefore to engage them with their finances and
encourage them to consider learning this lifelong skill while at
university. This way they have access to advice and financial
assistance should they need it.
4 4 KEY CHALLENGES

5. 5
Challenge #3:
Making money last
Our survey found that 27% of students felt the need
to borrow (or ask for) money from others.
And with over a month to go until the next instalment hits students’
accounts, one in ten have already spent their entire loan. Those in
their second year demonstrate the most worrying financial behaviour.
Almost a quarter having spent their entire instalment and, of the 40%
who have borrowed money, almost 23% have already
borrowed over £1,000.
46% of all students consider themselves to be confident at money
management – 34% have no idea how much living costs really are,
35% find it hard to rein in their spending when funds are low and 34%
find it difficult to cope without being given money from friends / family.
It is clear that many are overestimating their knowledge and
understanding. This is a global phenomena.
Students who are consistently out of money before their loan arrive
are more prone to dropping out and are more likely to turn to
dangerous lending practices to fund the shortfall.
When students are financially savvy and in control everyone wins.
There is more protection for potential budget carryover, potentially a
reduction in the need for emergency funding and therefore more funds
available for other initiatives eg WP.
We firmly believe that technology has a significant role to play in
complementing existing services. By equipping students with the
skills necessary to manage their money and take control of their
financial future in their own time financial behaviour becomes a
shared responsibility.

6. Challenge #4:
Dangerous practices
The more students declare their inability to get
from one loan instalment to the next without
running short of funds the more concerned we are
about the impact gambling and payday lending are
having on students.
Troublingly while students are increasingly turning to gambling and
payday lending (24% each) to ease financial worries - less than 2%
of students would turn to the university.
Some payday lenders are specifically targeting students, and many
student-centric websites are helping students “beat the system”
through matched betting.
The NUS has long called on universities and colleges to ban adverts
for payday loans on campus but the ubiquitous nature of payday
advertising poses a multitude of challenges for student advisers. So
too do gambling sites and apps.
Could greater signposting to the availability of hardship funds and
other financial resources on campus be helpful? Could immersive
activities drive the message home in more practical ways? Debt is
deeply personal and intimate – might students be more
comfortable interacting online rather than face to face? Could
access to non-judgemental online resources provide another
knowledge pipeline.
It is important that university campuses are safe spaces for students
and we must arm them with the knowledge, confidence and skills to
make informed decisions, particularly when at their most vulnerable.
6 4 KEY CHALLENGES

7. 7
Solution
Financial insecurity is a key challenge to student
services and universities.
But the solution isn’t, and can’t, always be about finding more
money – encouraging and educating students to better spend
available funds can prove to provide better short (and long!) term
value both to the institution and the student.
We are calling on students to act now and take control of their
finances and avoid spiralling debt. By taking control of their finances,
students can apply themselves to their studies rather than stressing
about money. Those who are better informed are better equipped
to succeed.
By understanding the sources of satisfaction (and dissatisfaction)
of students, and matching 21st century solutions with traditional
face to face advisory institutions can set their students on the path
to success.
The innovative can truly thrive in periods of challenge and that means
a greater focus on ensuring students are aware of the financial reality
on campus before they arrive and then ensuring sufficient resource,
available when they want it for just in time learning.
Better Money
Management

8. With NSS statistics, and the like, increasingly
influential, enhancing the student experience,
raising satisfaction and providing further skills and
resources is all the more important.
Together we can empower, and upskill, young
people for the 21st century!
Phone: 0800 808 9533
Email: enquiries@blackbullion.co.uk
www.blackbullion.co.uk