Student wealth increases 50 per cent in a decade
The days of impoverished students living a frugal existence are long gone with today’s students spending £1.8 billion* to fund a life rich with technology and luxury, according to new research from Direct Line Home Insurance.
Exploding the impoverished ‘Young Ones’ student stereotype once embraced by so many, the value of students’ personal possessions has rocketed by 50 per cent in the last 10 years.
The average student now owns £2,900 worth of possessions, compared to £1,900 in 1996**. Must have ‘gadgets’ include laptops (owned by 64 per cent), i-Pods/MP3 players (55 per cent), DVD players (48 per cent), widescreen TVs (12 per cent), and PDAs (six per cent).
Luxury spending also extends to the wardrobe, with stylish students splashing out 40 per cent more a year on clothing and accessories than on books and essential household appliances (such as kettles and irons) put together***.
62 per cent ‘treat themselves’ to non essential items at least once a month, with female students being more likely to splash out (68 per cent) than their male counterparts (57 per cent).
Today’s students don’t consider their gadget purchases extravagant. Rather, they treat their studies as a job, in which technology is essential for success and luxury a reward for hard work. In order to fund their purchases, a significant minority (33 per cent) take on part-time work. Other funding methods include student loans (27 per cent), overdrafts (13 per cent), and credit cards (3 per cent).
The Direct Line research also finds that regardless of their newfound affluence, the majority (55 per cent) of students believe their area has prevalent crime levels, with one in 20 having been burgled in the last 12 months. Despite this, one in four (24 per cent) students forgo insuring their possessions.
Direct Line Home Insurance spokesperson Simon Ziviani commented:
“The wealth of today’s students really is proof that times are changing and that the majority now enjoy a degree of affluence.
“With university set to start back shortly, students are advised to either take out their own insurance or check to see if their parents’ policy covers them.”
For more information, log on to www.directline.com/home
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Simon Ziviani/Direct Line Press Office
0208 256 2270 / 07985 421646
Email: simon.ziviani@directline.com
Notes to Editors:
YouGov interviewed 2558 GB Adults online between 22nd and 26th June 2006. Results are weighted to be representative of the GB adult population. 912 were former university students.
Additionally, YouGov interviewed 587 current university students aged 18 and over online between 22nd and 27th June 2006. Results are unwieghted. YouGov is a member of the British Polling Council.
* According to the Dfes, the population of higher education students in 2004/05 was 2.3 million. By spending an average of £790.45 a year they collectively spend £1,818,035,000.
** The average student questioned in 2006 owns £2,900 worth of possessions. Students who finished university between 1993 and 1996 owned £1,900 worth of possessions.
*** The average student spends £261 a year on clothes and accessories. This is 42 per cent more than what they spend on books and household appliances (£183).
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