University life ‘causing debt concern for parents’

Many parents in the UK who are seeing their children off to university this year are concerned the venture may worsen their debt anxiety, new research has suggested.

Carried out by the Consumer Financial Education Body (CFEB), the study revealed more than two-thirds of mothers and fathers (71 per cent) are worried about providing financially for their son or daughter while they are completing their studies.

It also showed 33 per cent are either very or extremely anxious about the prospect.

The organisation claimed these figures reiterate the importance of scholars being able to adequately handle their own finances, yet it warned many university goers are unaware of a number of important money facts.

It was discovered a third of students do not know doorstep lenders – of which the average annual percentage rate is 359 per cent – are generally more expensive than most other lenders.

Moreover, 35 per cent of undergraduates admitted they were unaware their car insurance must be in their own name and address, rather than that of their parents.

The body reminded young motorists it is illegal for their mum or dad to 'front' such policies.

Tony Hobman, chief executive of the CFEB, commented: "Living away from home for the first time can be challenging for students and their parents too."

He added mums and dads have an important role to play in encouraging their kids to be sensible with their cash.

Santander recently advised students to make sure their belongings are adequately insured as it revealed more than one-in-eight scholars fell victim to theft last year.

By Joe White