COVID-19 gives rise to new generation of financially savvy students
Berlin – Pan-European research from digital bank N26 reveals how the COVID-19 pandemic has transformed the way students manage their money.
Faced with a tough economic landscape, savvy students are pooling resources to make their funds go further. Three quarters (74%) now share utility bills, 70% internet costs and 61% grocery bills.
Many are deploying technology to keep an eye on what they owe and avoid awkward ‘who-owes-what’ conversations. More than half (55%) typically use an app to split bills with friends – with N26, Paypal and Bizum the most popular choices.
Such tools are helping students take control of their finances. Over a third (37%) keep a close eye on their finances and always know their monthly budget. An even greater proportion (59%) would describe their attitude to money management as cautious – and 47% consider themselves serial savers. Indeed, against all odds, students anticipate saving, on average, €153.56 per month over the coming year.
“Today's students are turning to digital tools to navigate their financial lives. At N26 we’re supporting this by offering various features with which young people can easily manage their finances, including digital solutions for modern shared banking. In short, we’re helping students take control of their money.” comments Alex Weber, Chief Growth Officer at N26. “But our survey also shows how the global pandemic has increased financial worries among young people and has influenced the way they handle money."
Over the last academic year, 41% have lost out financially due to changes in their living situation. For 18%, costs associated with these changes have amounted to more than €500.
Simultaneously, students had their earning potential reduced, with 26% losing their jobs as a result of the pandemic. When students earn, on average, €339.54 per month from a side job - losing one can be a substantial financial setback.
As we enter the new academic year, 30% of students are worried about their financial situation. A quarter (25%) of these have no savings and are struggling to find a job.
About the research
N26 and survey partner, Sapio Research, surveyed 5,034 university students across France, Germany, Spain, Italy, Ireland and the Netherlands in September 2021.
N26 is today one of the fastest-growing digital banks in the world. As a fully-licensed German bank built on the latest technology, N26 makes banking faster, easier and more trustworthy. Founded by Valentin Stalf and Maximilian Tayenthal in 2013, N26 has welcomed more than 8 million customers in 24 markets to date and has raised close to US$ 1.8 billion from some of the world’s most renowned investors. Headquartered in Berlin, N26 has offices in multiple cities around Europe, including Vienna and Barcelona.
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