Understanding UK university students’ day-to-day spending: a qualitative study

Purpose When starting university, most students manage their own money independently for the first time and encounter financial challenges that can negatively affect academic performance, mental health and well-being. Behaviour change interventions that support students to manage their money are needed. The few studies done on students’ financial difficulties have mainly focused on financial literacy, budgeting and saving, but not spending. This study aims to understand how students navigate everyday expenditure by focusing on students’ spending experiences and the attitudes, beliefs, values and contexts that may potentially influence spending decisions. Design/methodology/approach Semi-structured interviews were conducted with 20 UK first-year undergraduate students. Data were analysed using thematic analyses. Findings Four themes were constructed. Results suggested that, while students form discrete “spending identities” that generate personal spending norms, social environments often prompted deviation from personal norms. Convenience and accessibility fostered spending. Results also highlighted the importance of students’ mental representations of money and revealed a tension between maintaining financial autonomy while also often being dependent on financial support from family. Practical implications Students’ day-to-day spending is shaped by more than financial knowledge and budgeting. The findings of this study suggest that focusing on modifying perceptions of social norms, and encouraging planning strategies to help students navigate settings that encourage spending, may be optimal for promoting effective student money-management. Originality/value To the best of the authors’ knowledge, this is the first study to explore how undergraduate students think, feel and act around spending.