The world has descended into crisis; pandemic has a choke-hold on the lives of billions. Leaders must decide the fate of nations—how to save a dying economy, a dying population, and a dying way of life.
As Australia shuts down, a generation of university students must begin to tread unknown waters. The shift to online classes is a minor inconvenience compared to the imminence of unemployment. Whilst rent and other bills remain the same, income for young people is stifled.
As a university student, one of my biggest worries is money. How much money will I earn this week? How much money will I spend this week? Where can I save? And why did I just blow my whole pay cheque on a shopping-spree?
Now, with no income, job prospects or eligibility for welfare payments in the face of this crisis, my worries have trebled; and I don’t have to look far to see these concerns echoed by my peers.
I see my reality reflected in the work of Williams and Oumlil (2015). They note that vulnerable groups such as students are more likely to be financially excluded from mainstream financial service provision. This lack of resource access is compounded by irregular income; consequently increasing a university student’s vulnerability to external financial shocks and uncertainty, such as the COVID-19 pandemic.
I am interested in learning about other university student’s spending practices and how they have changed since the switch to remote learning and social isolation. Do these students have redundancy plans in place? What happens to those who do not?
The question I propose is twofold: how do university students spend and save? Are these habits adequate to survive a global crisis, such as the COVID19 pandemic?
An informal, exploratory poll I designed for Twitter yielded the following results:
Though not conclusive, the results of the poll demonstrate that students may be very concerned about their money amidst the current crisis. Yes, a large 38% of respondents are ‘somewhat confident’ about staying afloat financially over the coming months, but a majority 56% lack that confidence to variable degrees.
That only 5.6% of respondents are confident about their money? It does not bode well; hence the need for deeper research to understand why this may be and how this vital aspect of the student experience can be enhanced.
A review of existing literature regarding the finances of young people highlights that most studies are older and likely obsolete. Given the dynamic nature of the economy, one could assume that modern student finances have evolved since the early 2000s when research on this topic boomed.
Roberts and Jones (2001) early work suggests that consumer culture and consumption are an epidemic to young people; they link our depression, anxiety and low self esteem with compulsive buying. This source may be out-of-date, but it does start us out on an interesting path to uncovering more about student finances.
A more recent 2017 study by Sundarasen and Rahman concurs with the idea that young adults are drowned by the temptations of a consumer culture induced lifestyle. They identify students as being saddled with debts and unsettled credit cards. This study goes further to suggest that for students, money management/literacy can bring about financial freedom. This study inspires my inquiry into how students save and invest their money, as opposed to only how students spend their money.
Bramforth and Guersen (2017) look into the notion of student savings in their small Melbourne study of university students. They identify three distinct approaches to student money management: conservative, creative and entrepreneurial. An examination of what these money management strategies look like in the UOW cohort may be an interesting pathway in understanding how student finances will be impacted under the pandemic crisis.
Continually, the economic, social and psychological factors affecting undergraduates’ money management behaviours, as identified by Bamforth, Jebarajakirthy and Geursen (2017), will provide greater depth to understandings about student money management both in normal times and during the pandemic crisis; particularly compared to the traditional and two-dimensional focus on undergraduate financial literacy commonly seen in academic works in this field.
In my own research, I will tie these insights together in a comparison of university student money management and redundancy planning duringa crisis. I hope to highlight the very real struggles faced by students in their university experience, and the consequences of this on our lives and livelihoods.
Bamforth, J & Geursen, G 2017, “Categorising the money management behaviour of young consumers”, Young Consumers, Vol. 18 No. 3, pp. 205-222.
Bamforth, J, Jebarajakirthy, C & Geursen, G 2017, “Undergraduates’ responses to factors affecting their money management behaviour: some new insights from a qualitative study”, Young Consumers, Vol. 18 No. 3, pp. 290-311.
Roberts, J & Jones, E 2001, “Money Attitudes, Credit Card Use, and Compulsive Buying Among American College Students”, Journal of Consumer Affairs, Vol. 35, pp. 213 – 240.
Sundarasen, SD & Rahman MS 2017, “Attitude Towards Money: Mediation to Money Management”, Academy of Accounting and Financial Studies Journal, Vol. 21 No. 1, pp. 1-13.
Williams, A & Oumlil, A 2015, “College student financial capability”, International Journal of Bank Marketing, Vol. 33, pp. 637-653.