The Problem of Lack of Money for Students - Research Paper Example

How UK manage their money Contents List of tables Table sources of finance 8 Table 2: The mode in which students receive their allowances 9 Table 3: Students’ spending habits-top ten monthly purchases 10 Abstract The main problem that affect students’ outcomes in university is shortage of money.This problem might lead to serious consequences such as withdrawing from the university. A research was conducted to determine how student manage their finances and what causes their financial difficulties.A sample of 20 British students was given questionnaires to fill in order to collect the data. The collected data revealed that students who are sponsored by the government receive their salary every term, but they have to pay their bills every month. It was the concluded that students should be taught on how to manage their money wisely and how to stick to their budgets to avoid spending more than their income. Acknowledgement I extend sincere appreciation to the university students who participated to fill the questionnaires and my lecture for supporting thos research. Introduction One of the problems that might face the students could be financial difficulties such as the shortage of money before the complete their studies. Such a problem might lead to serious consequences such as withdrawing from the university. Many students face financial difficulties at the end of the term because of spending much of their money in the beginning of the term. This might lead them to borrow money and be drawn in debts. ‘’Recent college graduates carry a considerable debt load and financial problems at the time when they are just beginning to work in careers at beginning salaries‘’ (Falahati et al. ,2011). In order to resolve this problem, it is important to understand the reasons. The aim of this report is to understand how students manage their finances and if this is the reason of their financial problems. Methodology The aim of this project was to understand how student manage their finances and what causes their financial difficulties. British students constitute the main group in this study. (why)?Students who are sponsored by the government receive their salary every term, but they have to pay their bills every month. This puts them under great pressure to manage their finance well and this is believed to be a reasons that causes the financial problems. The sample was mainly students on the undergraduate degree. This was because more financial problems are observed at this level. The number of the participants was 20 students. A questionnaire was used to collect data from students. This method was used because it allowed for getting answers for specific questions on students’ financial management experiences. Results Reviewing the results of the conducted questionnaire clearly indicate that a large number of UK University students suffer financial problems throughout their life in university due to lack of good financial management skills (Van Horne &Wachowicz, 2008). Table 1: sources of finance Students (percentage) self-funded 5% receive money from my family 30% receive money from the government 50% receive money from university 10% Other 5% The results in table 1 indicates that a great percentage of UK University students (50%) receive money from governmental loan boards. The table shows that many UK University students rely on their parents for financial assistance and governmental student loans to cater for their fees and other basic needs. There are also other students who receive who are funded by the universities and a view depend on self-funding activities and other means to cater for their financial needs. Table two represents the mode in which students receive their money. A large percentage (70%) of UK students receive their money every term with some receiving financial support every month and viewer in other modes such as weekly or daily especially those who depend on the parents’ bank accounts. Table 2: The mode in which students receive their allowances After evaluation of the results in the table above, it was found that one in every six students in UK University splurge all their term’s loan before the end of the first university month. According to the study, a small number of students will still be using their loans in the last month of the term while the majority will spend all the borrowed money before the end of first month. This research shows that view students will struggle with financial problems for only two to three weeks before the term ends while the majority will survive a life of financial shortages throughout the entire term since they use all their money within the first month. The research revealed that one in four students regularly spend their money on expensive drinks. This issue affects both males and females. In addition, more than 10 percent of UK University students, especially females splurge their money on beauty treatments. Alcoholic drinks were ranked the second largest mode of expenditure for the university students (Webb, Ashton, Kelly &Kamali, 2006). The study found that each student spends approximately £45 per month with supermarket shopping, taking a large share of the students’ money. In addition, the research found that there are regional variations when it comes to spending habits. Students from British universities are the most spendthrift and being unable to manage their money for a whole term. The study found that students from other regions were able to manage their money for almost the whole term. The above results were drawn from a questionnaire conducted to 20 students who were questioned on various things one of them being their spending habits. Table 3: Students’ spending habits-top ten monthly purchases Purchases Monthly spend (£) Supermarket shopping 84 Beer, cider and spirits 45 New clothes 39 Books 30 Eating out 31 Beauty treatments 28 Takeaways 25 Gym 25 Treating friends 23 Cocktails 21 Giving to charity 18 Discussion The results of the research revealed that a large group of UK University students go through financial problems due to lack of good financial management skills. Most of the students end up misusing their money on luxurious things such as expensive drinks due to peer pressure. Others and especially females misuse their money of expensive beauty treatments (Kerkmann, Lee, Lown&Allgood, 2000). From these results the implications of peer pressure influence most students misuse their money within the first month of a term. This indicates that parents have an important role of enlightening their children on how to spend their money wisely. Most of the students who spend all their money before the end of first month are the ones who receive financial assistance from the university or governmental loans. The financial problems in which the students go through negatively affect their education performances. Conclusion In conclusion, students should understand that university loans are not meant to cover for a wide social life. There is need of university students to budget on how to spend their money. Achieving good experience from university does not only mean passing exams but also learning some money management basic rules before you finish your course? Being good money manager enables a student to have good time with no stress of putting himself or herself into unnecessary debts. The skills that one picks up in university also helps him or her to become a good financial management in future. Students should be taught on how to manage their money wisely and how to stick to their budgets to avoid spending more than their income. References Kerkmann, B. C., Lee, T. R., Lown, J. M., &Allgood, S. M. (2000). Financial management, financial problems and marital satisfaction among recently married university students. Financial Counseling and Planning, 11(2), 55-65. Van Horne, J. C., &Wachowicz, J. M. (2008). Fundamentals of financial management. Pearson Education. Webb, E., Ashton, C. H., Kelly, P., &Kamali, F. (2006). Alcohol and drug use in UK university students. The lancet, 348(9032), 922-925. Read More