Savings account experts have recently counseled prospective university students on the benefits of taking a year to work and put cash away in savings product such as an ISA before going on with their education.
Moneyfacts, an online resource for personal and business bank accounts, stated that future university students should make efforts to begin building their savings pots before they begin their degree course. With many Brits undergoing preparations for the 2011-2012 academic year kickoff this coming September, a significant percentage of them may be considering using their student loan funds to pay for their outgoings.
However, Moneyfacts experts say that prospective students should consider an alternative. Putting away cash in a high interest savings account a few months prior can aid in providing people with a more sturdy financial cushion, allowing them to avoid racking up financial debt so early on in life.
One Moneyfacts spokesperson remarked that, if new university students can manage to do it, it’s an excellent idea, especially in light of the new fees structure that will be instituted soon. However, the spokesperson was quick to warn that anyone to take 12 months out will more than likely be caught by the new fee structure in 2012, which means this may only end up undermining their good intentions.
Despite the warning, the spokesperson went on to say that having a full 12 months’ worth of cash saved up will never be a bad thing. Doing so will allow prospective university students to rely much less heavily on lending whilst pursuing their degree.
In related news, a recent research study published by Endsleigh found that nearly three out of every four students expressed unhappiness at the idea of having to budget their funds more responsibly.