This research follows the launch of HSBC UK’s new Student Account which includes £100 in cash, a one year subscription to mindfulness service Headspace and a guaranteed overdraft of £1,000 in the first year, increasing up to £3000 in year 3.
With only 2% of students admitting to not making any changes to their lifestyle to address cost of living challenges, the new research from HSBC UK shows:
While students are taking action to tighten their belts to improve their finances in the face of the increased cost of living, mental health is still front of mind for those at uni.
On a more positive note, students are using different tactics to alleviate stress. The most common ways of reducing stress include:
Positively, one in five students (21%) say they know they can contact their bank about money worries without it affecting their credit score.
Pella Frost, Head of Everyday Banking at HSBC UK, said: “For many people heading off to university is an incredibly exciting time and they’ll be looking forward to meeting new people and starting their university course. Of course, there can be also be challenges. For some, it will be the first time living away from home and it might also be the first time managing their finances and studies independently, which can be daunting.
“Uni students should be reassured that there’s a lot of help out there for them, whether it is online mindfulness support like Headspace, support from friends or pastoral support from the university. There are also a number of simple hacks that could only take minutes and make a real difference to a student’s finances, whether that is to help budget or build financial resilience. Of course, guidance and information is also available from your bank.”
Top five money hacks that students are adopting to help with the increased cost of living:
|1. Keep close tabs on expenditure and create a budget.||Plan and budget where you can. HSBC UK customers can utilise resources on the HSBC UK mobile app including the ‘Plan’ tab to keep track of where your money is going, use the ‘Balance after bills’ feature to see how much disposable income you have after paying your bills and consider using a ‘subscription management tool’ to monitor your monthly subscription outgoings.|
|2. Understand how fit your finances are. Generate your own or household financial fitness score.||
Generate your own or household financial fitness score by answering a few quick questions at: https://financialfitness.hsbc.co.uk/. It takes about 10 minutes and does not affect your credit score in any way. You will be given tips to help set achievable goals to improve your financial health and can use the tool again in future to see if your score has improved.
|3. Sign-up for a free HSBC UK’s support webinar open to both customers and non-customers.||Register for a free HSBC UK support webinar here: https://www.hsbc.co.uk/financial-fitness/fitness-score/#register. These free webinars will give you the insight, knowledge, and tools to reach your financial goals and build a strong foundation for the future. Each webinar lasts 30 to 60 minutes and they are open to all – no matter who you bank with.|
|4. Find out what benefits you are entitled to by using a Benefits Calculator Tool.||The most recent estimates suggest there £15 billion of unclaimed benefits in the UK. For more information and to check what you are entitled to, visit: https://www.hsbc.co.uk/financial-fitness/could-you-be-missing-out-on-unclaimed-benefits/#calculator|
|5. Speak to your bank if you have any money worries||Remember you are not alone. If you are struggling with your account, have missed a payment or think you might do soon, complete an income and expenditure form online at: https://www.hsbc.co.uk/help/money-worries/ or speak to HSBC UK’s Financial Support Team over the phone or through the online chat service. These steps will help HSBC UK work out the best way to support you.|
Notes to editors:
The research was carried out online by Research Without Barriers and conducted between 2nd August 2023 and 8th August 2023 with a sample of 2,002 UK University students.
All research conducted adheres to the ESOMAR & UK Market Research Society (MRS) code of conduct (2023)
HSBC UK’s Student Account includes:
The account offer, which is now available, includes:
HSBC UK serves over 14.75 million customers across the UK, supported by 24,000 colleagues. HSBC UK offers a complete range of retail banking and wealth management to personal and private banking customers, as well as commercial banking for small to medium businesses and large corporates. HSBC UK is a ring fenced bank and wholly owned subsidiary of HSBC Holdings plc.
HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 62 countries and territories. With assets of US$3,041bn at 30 June 2023, HSBC is one of the world’s largest banking and financial services organisations.