Student spending habits
this is access to expendable cash
INFLUENCE HOW AND WHERE YOUTH SPEND THEIR CASH
The spending power of youth is undeniable. It is estimated that youth spend 58% of their annual loan within the first 100 days, whilst one in five will spend the entire amount in the same period. Whether this income is spent wisely or not, year on year it is spent. For the first time, they are in control of their own finances and are able to make independent purchasing decisions.
Early adopters and open to new experiences, youth are at a unique stage where brands have the opportunity to establish brand loyalty and capitalise on their access to expendable cash. Various sources highlight the significant spending power of students in the UK economy. While figures may differ slightly, most agree that students inject around £23 billion into the economy annually.
Naturally, a large portion is spent on accommodation. However, their discretionary spend is equally noteworthy. Students spend approximately £3.5 billion on food and around £2 billion on socialising each year. In addition, they spend another £2 billion on non-essential items, with £1 billion of that allocated to clothing alone. This level of spending presents brands with a clear opportunity to establish early connections and foster lasting consumer relationships.
Every year, around 600,000 new students arrive from across the UK and around the world. They embark on a significant life milestone, seeking independence, shaping their identity, and exploring entirely new lifestyles and routines.
During this period, they are open to new ideas, products, and services that match their evolving needs. Importantly, they also have access to expendable cash and are actively forming new purchasing behaviours. So, if you’re not marketing to students yet, what are you waiting for?
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Research Intel
It is a common misconception that students at University have no money when, in reality, they regularly have an influx of expendable cash that will be spent.
Research shows that, while youth love a freebie, if they want something, they will buy it irrespective of the cost. Brands must understand what motivates youth to buy and trigger these motivators through strategic marketing.