Irish students 'managing money well'
Despite the recent surge in personal debt, Irish third level students continue to excel when it comes to managing their money, according to a report released today.
New research by Bank of Ireland has revealed that only one in five of the bank's student customers have a credit card, only one in eight have a loan and three-quarters of them clear their credit card bill every month or operate a credit balance.
The research also revealed that third level students are firm believers in saving for their future and nine in 10 believe that it is important to do so.
One-third of the bank's student customers have a savings account into which they deposit money on a regular basis. Travel (44%) and 'rainy days' (41%), followed by education (24%) and cars (6%) are the main savings goals.
"Students continue to display exemplary behaviour when it comes to managing their finances and our research clearly debunks the myth that there is a growing debt crisis among this segment," said Bank of Ireland spokesperson Nicola Brady.
"We do not believe in allowing students build up massive debts that could become a burden to them in the early years of employment - this would not be in the interest of either our student customers or our business.
"Students should be congratulated for displaying great maturity and competency when it comes to managing their finances".
Bank of Ireland's own student customer statistics support the claim - nearly two-thirds of student loans are less than €2,000 and the average loan term is just 21 months.
The average student loan is just €1,589 and living expenses (27%), travel (21%), course fees (17%), motor loan (17%) and course materials (5%) are the main reasons given for student loans.
When it comes to credit cards three-quarters of students clear their credit card bill in full or operate a credit balance.
Credit card usage among students is also lower than the average with 24% rarely using it, 44% using it two or three times a month, 23% once a week and only 9% more frequently.
