Higher and Further Education Students' Income, Expenditure and Debt in Scotland 2007-08

3. HIGHER EDUCATION STUDENTS' EXPENDITURE

Introduction

3.1 This chapter reports the expenditure of HE students from the main survey. Where appropriate, as in the chapters on HE students' income and debt, interview material is also included for illustrative purposes. Also, as with the other HE students' chapters on income and debt, the data in this chapter is disaggregated by part-time ( PT) and full-time ( FT) students, with the latter also distinguishing between FTHE sub-degree and FTHE degree. The data for these two levels of students are then combined to provide FTHE Combined figures.

3.2 Expenditure patterns are examined by, among other variables, sex, level of study, accommodation status, class and working patterns. All mean expenditures are calculated over all responses. The exception to this is where certain types of expenditure are only relevant to particular groups of students, for example child-related expenditure. For these exceptions, mean expenditures are calculated over these groups only. Items of expenditure are grouped into categories, the bases of which are outlined in the Technical Appendix.

3.3 Before presenting the result of the analysis, it should be remembered that, as outlined previously in Chapter 2:

The data presented is only for academic term-time unless otherwise stated.
No distinction is made in the analysis between HE students attending HEIs and Colleges since their method of funding is the same.
With some exceptions, means are calculated across all students.
The precise definition of each variable can be found in the Technical Appendix.

HE Students' Expenditure

3.4 Table 3.1 summarises costs by type of all of the students.

Table 3.1: Total and main types of expenditure by level of study

Type of Expenditure	FTHE Sub-Degree only (N= 372)	FTHE Degree Only (N=3959)	FTHE Combined (N= 4331)	PTHE (N= 520)
Type of Expenditure	£	£	£	£
Total expenditure	6820	6203	6339	10453
Housing costs	1062	1131	1116	2023
Living costs	4133	3903	3954	5860
Participation costs	1261	926	957	850
Child-specific costs	440	136	203	1261
Other costs	120	107	110	460

3.5 The table reveals similar expenditure patterns for all HE students with the exception of child-specific costs, which are much higher for PTHE students. That these students have children in the first place might explain why they have chosen the part-time mode of study. This finding has obvious policy implications, suggesting that the costs of child-care are a salient issue for this type of student.

3.6 This first set of tables provides headline expenditure figures for each of the four types of students: FTHE sub-degree, FTHE degree, FEHE Combined and PTHE. They provide figures on total expenditure and the main types of expenditure.

Table 3.2: Total and main types of expenditure ( FTHE Sub-degree)

FTHE Sub-degree (N=372)	Mean Expenditure	First Quartile	Median Expenditure	Third Quartile
FTHE Sub-degree (N=372)	£	£	£	£
Total Expenditure	6820	4048	6417	8197
Housing costs	1062	0	540	2025
Living costs	4133	2632	3690	5548
Participation costs	1065	470	810	1290
Child-specific costs	440	0	0	0
Other costs	120	0	0	0

3.7 The overall mean expenditure for full-time HE sub-degree students is £6820 (Table 3.2). Living costs are the highest costs which students face although there is substantial variation between the first and third quartile. Average living costs constitute 60% of total expenditure. The other main costs are housing costs and participation costs, which respectively account for approximately 15% of total expenditure.

Table 3.3: Total and main types of expenditure ( FTHE Degree only)

FTHE degree only (N=3959)	Mean Expenditure	First Quartile	Median Expenditure	Third Quartile
FTHE degree only (N=3959)	£	£	£	£
Total Expenditure	6203	3915	5693	7660
Housing costs	1131	0	0	2250
Living costs	3903	2592	3600	4830
Participation costs	926	270	650	1250
Child-specific costs	136	0	0	0
Other costs	107	0	0	0

3.8 As Table 3.3 shows, the overall mean expenditure for full-time HE degree students is £6203. Degree only students differ from sub-degree students in that, for the former, housing costs are greater than participation costs. This finding may reflect the greater proportion of sub-degree students (most studying at colleges) who live at home compared to degree students. In addition the mean figure of £6203 falls a good way short of the corresponding figure for sub degree students of £6820. Possible reasons for this may be found in the analysis of age which will be considered in Tables 3.9 and 3.10. For degree only students living costs constitute over 60% of total costs. Again there is a fair degree of variation in all categories and total expenditure varies between the third and first quartile by a figure of £3745 which is over half of the mean figure of £6203.

Table 3.4: Total and main types of expenditure ( FTHE Combined)

FTHE Combined (N=4331)	Mean Expenditure	Median Expenditure
FTHE Combined (N=4331)	£	£
Total Expenditure	6339	5852
Housing costs	1116	119
Living costs	3954	3620
Participation costs	957	650
Child-specific costs	203	0
Other costs	110	0

3.9 The mean total expenditure for FTHE Combined students is £6339. Given the preponderance of degree students in the overall sample, living costs are broadly in line with full-time HE degree students at again over 60% of the overall total expenditure. Housing costs account for 18% of total expenditure and participation costs 15%.

Table 3.5: Total and main types of expenditure ( PTHE)

PTHE (N=520)	Mean Expenditure	First Quartile	Median Expenditure	Third Quartile
PTHE (N=520)	£	£	£	£
Total Expenditure	10453	5674	8665	13346
Housing costs	2023	0	1620	3150
Living costs	5860	3635	5122	7505
Participation costs	850	338	694	1150
Child-specific costs	1261	0	0	1854
Other costs	460	0	0	0

3.10 The total expenditure for part-time HE students is £10,453. This figure, like their income, is much larger than their full-time counterparts. Living costs are again the highest expenditure at 55%. Whilst the living costs are broadly comparable with the full-time HE sub-degree and degree students there are some noticeable differences with other costs. Participation costs at 8% are around half of the same figure for full-time students. Child costs at 12% are significantly higher than for full-time sub-degree students (6%) and full-time degree students (2%). This finding would suggest that part-time HE students are more likely to be mature students, with a greater likelihood of having child-care responsibilities.

3.11 The gap in total expenditure between the Third and First Quartiles is £7672 or around three-quarters of the mean figure and thus shows greater variation than the expenditure of the FTHE students in our sample.

3.12 Comparatively, what this first set of tables reveals is that total mean expenditure is much higher for PTHE students than FTHE students - using the combined FTHE students figure - £10,453 versus £6339.

3.13 Nevertheless, the pattern of expenditure is not hugely different between the two modes of study for students. Using the combined FT figures, full-timers and part-timers spend 17% and 19% respectively on housing costs, and 62% and 56% on living costs. Difference does exist, however, for child-specific costs, which are almost 4 times higher for PTHE students (12% versus 3%). The absolute cost of participation is slightly higher for full-timers (£957 versus £850).

3.14 The next set of tables examines expenditure for the different types of students by student characteristics and mode of study.

Table 3.6: Total expenditure by student characteristics and level of study

Characteristic		FTHE Sub-Degree ⁶⁵ (N=372)	FTHE Degree Only (N=3959)	FTHE Combined (N= 4331)	PTHE (N=520)
Sex		£	£	£	£
Male	Mean	6694	6259	6355	10472
Male	Median	6643	5854	6028	8697
Female	Mean	6931	6157	6327	10440
Female	Median	6240	5559	5709	8378
Age
16-20	Mean	5426	5632	5587	7908
16-20	Median	5033	5304	5244	5503
21-24	Mean	7163	6602	6725	6538
21-24	Median	6727	6274	6374	5847
25+	Mean	10047	10039	10039	11315
25+	Median	8729	8773	8773	10133
Social class
Middle class	Mean	5729	5854	5827	10409
Middle class	Median	5262	5443	5403	8979
Working Class	Mean	7375	6533	6718	10555
Working Class	Median	6870	5902	6115	8665
Family member studied at University
Yes	Mean	6469	5915	6037	10546
Yes	Median	5926	5460	5563	9031
No	Mean	7153	6661	6769	10370
No	Median	6645	6092	6214	8290
Dependent children
Yes	Mean	12485	14612	14144	15014
Yes	Median	12720	14064	13768	14052
No	Mean	5943	5904	5913	8240
No	Median	6030	5578	5677	6964
Living arrangements
With parents	Mean	5244	5337	5317	6321
With parents	Median	4724	4788	4774	5503
Not with parents	Mean	8393	6847	7187	11153
Not with parents	Median	7501	6214	6497	9412

3.15 As the above table reveals, the HE students with the highest expenditure are PTHE with dependent children (£15,014); those with the lowest expenditure are sub-degree students who are living with parents (£5244).

3.16 Overall highest expenditure differences occur between students with dependent children compared to those students with no dependent children.

"Well food is quite a lot because … I'm still feeding me and two children."

"You can get by, you can scrape by but you sacrifice everything. There's no nights out, I mean, not that you need nights out but there's no luxury items, it's a case of paying the bills, buying what food you need and that is it. You can't give yourself a treat or give your kids a treat, they get the basics of what they need and that's it really."

3.17 Compared to FTHE Combined students, PTHE students generally have higher expenditure, although there are exceptions for the 21-24 age group, students living with parents and those students with no dependent children. Costs for these types of students are roughly the same.

3.18 Focusing on the FTHE Combined students:

Males have roughly the same expenditure as females.
Expenditure rises with age, so that mature students have over 80% more expenditure than the youngest students and more than 50% more than students aged 21-24 years.
Working class students have higher expenditure than middle class students (£6718 versus £5827).
Those students with no family member having studied at university have higher expenditure than those students having a family member having studied at university (£6769 versus £6037).
Those students with dependent children have considerably higher expenditure than those students with no dependent children (£14,144 versus £5913 or almost 3 times higher).
Those students who do not live with their parents, as might be expected, have a higher expenditure than students who do live with their parents (£7187 versus £317).

3.19 Thus, generally, those students with the highest expenditure are mature and working class students and those students with no family member having studied at university, with dependent children and who do not live with their parents.

"Younger ones who are still with their parents, they don't have rent, they don't have children, they don't have bills to stress over."

3.20 The next set of tables examines expenditure for the different types of students by sex.

Table 3.7: Total and main types of expenditure by sex ( FTHE Combined)

FTHE Combined		Sex
		Male (N = 1970)	Female (N = 2361)
		£	£
Total Expenditure	Mean	6355	6327
Total Expenditure	Median	6028	5709
Housing costs	Mean	1151	1086
Housing costs	Median	158	119
Living costs	Mean	4059	3867
Living costs	Median	3748	3486
Participation costs	Mean	963	950
Participation costs	Median	676	689
Child-specific costs	Mean	98	294
Child-specific costs	Median	0	0
Other costs	Mean	85	130
Other costs	Median	0	0

3.21 Female full-time HE students make up almost 55% of our sample. They report a mean expenditure of £6327 compared to the figure of £6355 for men. They report lower expenditures in every category except other costs and child related costs, which unsurprisingly are three times greater than for the men in the sample.

Table 3.8: Total and main types of expenditure by sex ( PTHE)

PTHE		Sex
		Male (N = 213)	Female (N = 307)
		£	£
Total Expenditure	Mean	10472	10440
Total Expenditure	Median	8697	8378
Housing costs	Mean	2120	1955
Housing costs	Median	1350	1800
Living costs	Mean	6097	5695
Living costs	Median	5085	5182
Participation costs	Mean	824	869
Participation costs	Median	691	707
Child-specific costs	Mean	986	1453
Child-specific costs	Median	0	0
Other costs	Mean	446	469
Other costs	Median	0	0

3.22 For the part-time sample the proportion of female students is slightly higher than the full-time HE combined at 59%. They report total expenditures which are very close to those reported by male students (respectively £10,440 and £10,472). Within the types of expenditure female part-time students report significantly higher child related costs (£1453) than their full-time counterparts. Proportionately, child related costs at 18% of total expenditure are much higher for part-time than for full-time female HE students (4%). The male students in this sample also report much higher child costs at £986. These figures reinforce the picture of part-time students being more likely to be mature students with child-care responsibilities.

3.23 The next set of tables examines expenditure for the different types of students by age.

Table 3.9: Total and main types of expenditure by age ( FTHE Combined)

FTHE Combined		Age
		16-20 (N = 3197)	21-24 (N = 664)	25+ (N = 470)
		£	£	£
Total Expenditure	Mean	5587	6725	10039
Total Expenditure	Median	5244	6374	8773
Housing costs	Mean	926	1319	2003
Housing costs	Median	0	1016	1980
Living costs	Mean	3726	4045	5015
Living costs	Median	3390	3777	4675
Participation costs	Mean	849	1061	1566
Participation costs	Median	618	766	1252
Child-specific costs	Mean	10	180	1142
Child-specific costs	Median	0	0	0
Other costs	Mean	76	120	312
Other costs	Median	0	0	0

3.24 The vast majority of respondents (89%) are students aged 16-24. Mean total expenditure for students 25 and over at £10,039 is nearly double that of students aged 16-20 (£5,587). Students 25 and over report higher costs in all areas with the difference being most pronounced with regard to child-care costs.

Table 3.10: Total and main types of expenditure by age ( PTHE)

PTHE		Age
		16-20 (N = 50)	21-24 (N = 58)	25+ (N = 412)
		£	£	£
Total Expenditure	Mean	7908	6538	11315
Total Expenditure	Median	5503	5847	10133
Housing costs	Mean	1375	1308	2202
Housing costs	Median	900	1260	1800
Living costs	Mean	5594	4239	6121
Living costs	Median	4023	4005	5509
Participation costs	Mean	774	792	867
Participation costs	Median	580	563	710
Child-specific costs	Mean	0	110	1577
Child-specific costs	Median	0	0	0
Other costs	Mean	165	89	548
Other costs	Median	0	0	0

3.25 For PTHE students the vast majority (79%) are 25 and over. The mean total expenditure for students 25 and over is £11,315. The main cost for students 25 and over is living costs (£6121). Child-specific costs at 15% of the total expenditure of students 25 and over is significantly higher that for students aged 21-24 (1.6%).

3.26 The next set of tables examines expenditure for the different types of students by the social class background of the students (note that some students did not answer this question).

Table 3.11: Total and main types of expenditure by social class ( FTHE Sub-degree)

FTHE Sub-Degree		Social Class
		Middle Class (N = 121)	Working Class (N = 226)
		£	£
Total Expenditure	Mean	5729	7375
Total Expenditure	Median	5262	6870
Housing costs	Mean	814	1157
Housing costs	Median	0	900
Living costs	Mean	3637	4397
Living costs	Median	3194	4218
Participation costs	Mean	941	1121
Participation costs	Median	780	851
Child-specific costs	Mean	208	594
Child-specific costs	Median	0	0
Other costs	Mean	129	107
Other costs	Median	0	0

3.27 Sixty-five per cent of the full-time HE sub-degree sample are working class. Students from working class backgrounds had significantly higher levels of total expenditure (£7375) compared to those from a middle class background (£5729). The former's total mean expenditure is nearly 30% higher than that of the latter. Working class students spend more on all costs apart from the residual category, other costs.

Table 3.12: Total and main types of expenditure by social class ( FTHE Degree only)

FTHE Degree Only		Social Class
		Middle Class (N = 2173)	Working Class (N = 1678)
		£	£
Total Expenditure	Mean	5854	6533
Total Expenditure	Median	5443	5902
Housing costs	Mean	993	1256
Housing costs	Median	0	450
Living costs	Mean	3819	3968
Living costs	Median	3503	3645
Participation costs	Mean	865	996
Participation costs	Median	590	740
Child-specific costs	Mean	91	185
Child-specific costs	Median	0	0
Other costs	Mean	86	131
Other costs	Median	0	0

3.28 Whilst the majority of the full-time HE sub-degree sample are working class, the reverse is true for the full-time HE degree sample where 56% were middle class. Within this group students from working class backgrounds had a higher level of total expenditure (£6533) compared to those from a middle class background (£5854). Working class students spend more on all costs.

Table 3.13: Total and main types of expenditure by social class ( FTHE Combined)

FTHE Combined		Social Class
		Middle Class (N = 2294)	Working Class (N = 1904)
		£	£
Total Expenditure	Mean	5827	6718
Total Expenditure	Median	5403	6115
Housing costs	Mean	954	1234
Housing costs	Median	0	549
Living costs	Mean	3779	4062
Living costs	Median	3435	3771
Participation costs	Mean	882	1024
Participation costs	Median	632	764
Child-specific costs	Mean	117	275
Child-specific costs	Median	0	0
Other costs	Mean	95	126
Other costs	Median	0	0

3.29 The majority (55%) of students in our sample of full-time HE students are middle class. Total expenditure was over 15% higher for working class students (£6718) compared to those from a middle class background (£5827). Working class students spend more on all costs.

Table 3.14: Total and main types of expenditure by social class ( PTHE)

PTHE		Social Class
		Middle class (N = 175)	Working class (N = 319)
		£	£
Total Expenditure	Mean	10409	10555
Total Expenditure	Median	8979	8665
Housing costs	Mean	1938	2039
Housing costs	Median	1350	1620
Living costs	Mean	5832	5954
Living costs	Median	4977	5239
Participation costs	Mean	782	906
Participation costs	Median	631	730
Child-specific costs	Mean	1364	1219
Child-specific costs	Median	0	0
Other costs	Mean	493	436
Other costs	Median	0	0

3.30 As with the full-time HE sub-degree students there were a much higher number of part-time HE students who were working class (65%). Total expenditure was marginally higher for working class students (£10,555) than middle class students (£10,409). Housing costs, living costs and participation costs were higher for working class students.

3.31 The next set of tables examines expenditure for the different types of students by whether or not they had a family member who had studied at university.

Table 3.15: Total and main types of expenditure by whether a family member attended HE ( FTHE Sub-degree)

FTHE Sub-Degree		Family Attendance at University
		Yes (N = 181)	No (N = 191)
		£	£
Total Expenditure	Mean	6469	7153
Total Expenditure	Median	5926	6645
Housing costs	Mean	934	1183
Housing costs	Median	0	900
Living costs	Mean	3862	4390
Living costs	Median	3340	3894
Participation costs	Mean	1093	1039
Participation costs	Median	788	832
Child-specific costs	Mean	449	432
Child-specific costs	Median	0	0
Other costs	Mean	131	109
Other costs	Median	0	0

3.32 The sample of full-time HE sub-degree students is split almost evenly between those who have a family member at university and those who have not. The non-family group had a higher total expenditure (£7153) compared to those who had a family member who had attended university (£6469). Housing and living costs were slightly higher for those who had not had a family member attending university.

Table 3.16: Total and main types of expenditure by whether a family member attended HE ( FTHE Degree only)

FTHE degree only		Family Attendance at University
		Yes (N = 2428)	No (N = 1531)
		£	£
Total Expenditure	Mean	5915	6661
Total Expenditure	Median	5460	6092
Housing costs	Mean	1078	1216
Housing costs	Median	0	360
Living costs	Mean	3802	4064
Living costs	Median	3459	3778
Participation costs	Mean	846	1053
Participation costs	Median	570	800
Child-specific costs	Mean	98	198
Child-specific costs	Median	0	0
Other costs	Mean	92	131
Other costs	Median	0	0

3.33 Compared to the almost even split between full-time HE sub-degree students, a higher proportion of full-time HE degree students (61%) had a family member who had attended university compared to those who had not. As with the full-time HE sub-degree students the non-family group had a higher total expenditure (£6661) compared to those who had a family member who had attended university (£5915). All costs were higher for those who had not had a family member attending university.

Table 3.17: Total and main types of expenditure by whether a family member attended HE ( FTHE Combined)

FTHE Combined		Family Attendance at University
		Yes (N = 2609)	No (N = 1722)
		£	£
Total Expenditure	Mean	6037	6769
Total Expenditure	Median	5563	6214
Housing costs	Mean	1046	1209
Housing costs	Median	0	479
Living costs	Mean	3815	4136
Living costs	Median	3433	3804
Participation costs	Mean	900	1050
Participation costs	Median	618	807
Child-specific costs	Mean	175	249
Child-specific costs	Median	0	0
Other costs	Mean	101	126
Other costs	Median	0	0

3.34 For the full-time HE combined 60% of the sample had a family member who had attended University. Total expenditures reported for those students who have no family member who has studied at university (£6769) are almost 13% higher than those who have (£6037). It is worth noting that all costs were higher for those students who had not had a family member attending university.

Table 3.18: Total and main types of expenditure by whether a family member attended HE ( PTHE)

PTHE		Family Attendance at University
		Yes (N = 245)	No (N = 275)
		£	£
Total Expenditure	Mean	10546	10370
Total Expenditure	Median	9031	8290
Housing costs	Mean	2213	1853
Housing costs	Median	1800	1350
Living costs	Mean	5931	5796
Living costs	Median	5202	5025
Participation costs	Mean	879	824
Participation costs	Median	740	650
Child-specific costs	Mean	1138	1372
Child-specific costs	Median	0	0
Other costs	Mean	386	525
Other costs	Median	0	0

3.35 The sample of part-time HE students is split almost evenly between those who had a family member attend university and those who had not. Total expenditure for those who have a family member who had attended university was slightly higher (£10,546) than those who had not (£10,370). Unlike the full-time HE students there is some variability as to which group had the higher costs, with housing costs, living costs and participation costs being higher for those who had had a family member attending university.

3.36 The next set of tables examines expenditure for the different types of students by whether or not they had dependent children.

Table 3.19: Total and main types of expenditure by dependent children ( FTHE Combined)

FTHE Combined		Dependent Children
		Yes (N = 186)	No (N = 4145)
		£	£
Total Expenditure	Mean	14144	5913
Total Expenditure	Median	13768	5677
Housing costs	Mean	2110	1065
Housing costs	Median	1787	99
Living costs	Mean	6164	3829
Living costs	Median	5966	3512
Participation costs	Mean	1774	918
Participation costs	Median	1418	665
Child-specific costs	Mean	3815	0
Child-specific costs	Median	3554	0
Other costs	Mean	281	101
Other costs	Median	0	0

3.37 For FTHE combined students the vast majority indicated that they did not have dependent children (96%). The total mean expenditure (£14,144) for students indicating that they had dependent children was nearly three times higher than those who did not (£5913). All costs were higher for students with dependent children with child-care costs representing around a quarter of their total costs.

Table 3.20: Total and main types of expenditure by dependent children ( PTHE)

PTHE		Dependent Children
		Yes (N = 170)	No (N =350)
		£	£
Total Expenditure	Mean	15014	8240
Total Expenditure	Median	14052	6964
Housing costs	Mean	2464	1808
Housing costs	Median	2115	1350
Living costs	Mean	7125	5246
Living costs	Median	6941	4554
Participation costs	Mean	984	785
Participation costs	Median	760	648
Child-specific costs	Mean	3861	0
Child-specific costs	Median	3435	0
Other costs	Mean	580	401
Other costs	Median	0	0

3.38 Likewise, most PTHE students did not have dependent children. The total mean expenditure (£15,014) for students indicating that they had dependent children was nearly double that of those students who did not (£8240). Almost all costs were higher for students with dependent children with child-care costs representing around a quarter of their total costs.

3.39 The next set of tables examines expenditure for the different types of students by their living and accommodation status.

Table 3.21: Total and main types of expenditure by accommodation status ( FTHE Sub-degree)

FTHE Sub-degree	Main types of expenditure
Accommodation Status (N=372)	Housing costs £	Living costs £	Participation costs £	Other costs £	Child costs £	Total Expenditure £
Living with parents (N=186)
Mean	389	3638	1080	92	46	5244
Median	0	3197	820	0	0	4724
Not living with parents (N=186)*
Mean	1733	4627	1050	148	834	8393
Median	1821	4252	750	0	0	7501
In a rented flat/house (shared with others) (N=76)
Mean	1925	4310	745	45	181	7207
Median	2070	3944	691	0	0	6651
In a rented flat/house (on my own) (N=41)
Mean	2241	4403	975	152	687	8458
Median	2070	4184	588	0	0	7801
In halls of residence (N=15)
Mean	1189	3209	620	146	0	5164
Median	156	2456	204	0	0	3890
In other university/college owned accommodation (N=3)
Mean	1554	2355	108	170	0	4189
Median	1667	2218	23	152	0	3968
In a flat/house owned by my parents where they do not live (N=9)
Mean	1508	3403	1727	176	88	6902
Median	2344	3168	1396	0	0	7347
In a flat/house owned by myself (N=30)
Mean	1763	5551	1629	175	1785	10904
Median	1962	4674	1084	0	0	10087
With my partner (N=28)
Mean	1517	5200	1086	126	1833	9762
Median	1386	5484	860	0	491	8100
With my children (N=31)
Mean	1814	5381	1264	211	3503	12173
Median	1800	5755	960	0	4124	12847
Other (N=12)
Mean	339	5845	1126	443	1020	8772
Median	0	4244	699	0	0	5503

*'Not living with parents' base (n) is the sum of all of the different types of accommodation that follow

3.40 The full-time HE sub-degree sample is evenly split between those who live with their parents and those who do not live with their parents. The mean expenditure for those living with their parents (£5244) is significantly less than those who do not live with their parents (£8393). For those not living with their parents the lowest level of expenditure is for those living in university owned accommodation (£4189) or halls of residence (£5164) (though note that the number of respondents are small in both cases and should be treated with caution). For those living in a flat/house they own themselves (£10,904) or those living with children (£12,173) expenditure is significantly higher. Living in a rented flat either sharing with others or on their own, whilst more expensive than halls of residence is nevertheless still cheaper than owning a flat.

Table 3.22: Total and main types of expenditure by accommodation status ( FTHE Degree only)

FTHE Degree only	Main types of expenditure
Accommodation Status (N=3959)	Housing costs £	Living costs £	Participation costs £	Other costs £	Child costs £	Total Expenditure £
Living with parents (N=1688)
Mean	463	3592	1166	92	24	5337
Median	0	3208	942	0	0	4788
Not living with parents (N=2271)
Mean	1627	4135	747	118	220	6847
Median	1800	3764	450	0	0	6214
In a rented flat/house (shared with others) (N=1326)
Mean	1711	4103	589	86	37	6527
Median	2115	3768	390	0	0	6202
In a rented flat/house (on my own) (N=138)
Mean	2540	4769	1209	281	620	9420
Median	2520	4584	944	0	0	8234
In halls of residence (N=467)
Mean	1704	3123	444	40	0	5311
Median	0	2853	250	0	0	4748
In other university/college owned accommodation (N=126)
Mean	2052	3351	515	48	0	5966
Median	2022	3132	282	0	0	5451
In a flat/house owned by my parents where they do not live (N=154)
Mean	510	4176	740	88	5	5518
Median	0	3924	490	0	0	5014
In a flat/house owned by myself (N=244)
Mean	1886	5096	1381	274	1161	9798
Median	1800	4667	1072	0	0	8606
With my partner (N=237)
Mean	1848	5031	1245	201	937	9261
Median	1800	4721	956	0	0	8074
With my children (N=89)
Mean	2279	6242	1740	324	4104	14690
Median	1800	6172	1586	0	3811	14124
Other (N=70)
Mean	827	4352	1471	248	326	7225
Median	0	4154	1235	0	0	6480

*Not living with parents is the sum of all of the different types of accommodation that follow

3.41 The majority (57%) of the full-time HE degree sample do not live with their parents. Those not living with their parents have a higher mean expenditure (£6847) that those who do (£5377) though this differential is less pronounced than for full-time HE sub-degree students. For those not living with their parents the lowest level of expenditure is for those living in halls of residence (£5311) or university owned accommodation (£5966). For those living in a flat/house they own themselves (£9798) or those living with children (£14,690) expenditure is significantly higher. Living in a rented flat either sharing with others or on their own, whilst more expensive than halls of residence or university accommodation is nevertheless still cheaper than owning a flat.

Table 3.23: Total and main types of expenditure by accommodation status ( FTHE Combined)

FTHE Combined	Main types of expenditure
Accommodation Status (N=4331)	Housing costs £	Living costs £	Participation costs £	Other costs £	Child costs £	Total Expenditure £
Living with parents (N=1874)
Mean	447	3602	1147	92	29	5317
Median	0	3206	915	0	0	4774
Not living with parents (N=2457)
Mean	1650	4243	814	125	355	7187
Median	1805	3871	516	0	0	6497
In a rented flat/house (shared with others) (N=1402)
Mean	1758	4149	623	77	69	6677
Median	2105	3807	456	0	0	6301
In a rented flat/house (on my own) (N=179)
Mean	2474	4688	1158	253	635	9208
Median	2421	4496	866	0	0	8139
In halls of residence (N=482)
Mean	1591	3142	483	63	0	5279
Median	34	2766	240	0	0	4559
In other university/ college owned accommodation (N=129)
Mean	1942	3132	425	75	0	5575
Median	1944	2931	225	33	0	5125
In a flat/house owned by my parents where they do not live (N=163)
Mean	730	4006	957	107	23	5822
Median	516	3758	689	0	0	5527
In a flat/house owned by myself (N=274)
Mean	1859	5196	1436	252	1298	10041
Median	1836	4669	1075	0	0	8932
With my partner (N=265)
Mean	1775	5068	1210	185	1134	9371
Median	1709	4889	935	0	108	8080
With my children (N=120)
Mean	2177	6053	1635	299	3972	14136
Median	1800	6080	1448	0	3880	13843
Other (N=82)
Mean	720	4680	1395	291	479	7565
Median	0	4174	1117	0	0	6265

*Not living with parents is the sum of all of the different types of accommodation that follow.

3.42 The majority (57%) of the overall full-time HE sample do not live with their parents. Those not living with their parents have a higher mean expenditure (£7187) that those who do (£5317). For those not living with their parents the lowest level of expenditure is for those living in halls of residence (£5279) or other university/college owned accommodation (£5575). For those living in a flat/house they own themselves (£10,041) or those living with children (£14,136) expenditure is significantly higher. Living in a rented flat either sharing with others or on their own, whilst more expensive than halls of residence or university accommodation is nevertheless still cheaper than owning a flat.

Table 3.24: Total and main types of expenditure by accommodation status ( PTHE)

PTHE	Main types of expenditure
Accommodation Status (N=520)	Housing costs £	Living costs £	Participation costs £	Other costs £	Child costs £	Total Expenditure £
With my parents (N=75)
Mean	757	4358	991	193	22	6321
Median	540	4005	720	0	0	5503
Not with my parents (N=445)
Mean	2237	6114	826	505	1471	11153
Median	1088	5390	690	0	0	9412
In a rented flat/house (shared with others) (N=36)
Mean	1760	5745	546	273	594	8918
Median	1890	4986	372	0	0	8208
In a rented flat/house (on my own) (N=61)
Mean	1677	4383	707	153	571	7491
Median	1800	4332	376	0	0	6554
In halls of residence (N=9)
Mean	2257	2499	757	3	0	5514
Median	1620	2214	895	0	0	4739
In other university/ college owned accommodation (N=0)
Mean	0	0	0	0	0	0
Median	0	0	0	0	0	0
In a flat/house owned by my parents where they do not live (N=3)
Mean	0	3400	795	0	0	4195
Median	0	3864	1002	0	0	4866
In a flat/house owned by myself (N=271)
Mean	2790	6844	862	698	1782	12975
Median	2326	6401	730	0	0	11296
With my partner (N=144)
Mean	2411	7134	912	694	2203	13354
Median	1890	6420	690	0	1037	11819
With my children (N=101)
Mean	2293	7031	1055	772	3560	14711
Median	1800	6428	920	0	3114	14006
Other (N=11)
Mean	1528	6779	1206	913	945	11372
Median	735	7660	989	622	0	12634

*Not living with parents is the sum of all of the different types of accommodation that follow.

3.43 The vast majority (85%) of part-time HE students do not live with their parents. The mean expenditure for those not living with their parents (£11,153) is almost double that of those students who do live with their parents (£6321). As with the full-time HE students the lowest level of expenditure for those not living with their parents is for those living in halls of residence (£5514) - though note again the small number of respondents. The highest levels of expenditure are for those students who live in a flat/house by themselves (£12,975), those who live with a partner (£13,354) or those with children (£14,711).

3.44 Across all of the samples the contribution of parents, either by having their children live with them or by providing a flat/house for them to live in (which applies to 154 degree students, nine sub-degree students and three part-time students) makes a very significant contribution to reducing the expenditures reported by these students. This accommodation arrangement has the potential to reduce their accumulated debt and we will return to this point later.

3.45 The next set of tables examines expenditure for the different types of students by their year of study.

Table 3.25: Total and main types of expenditure by year of study ( FTHE Sub-degree)

FTHE Sub-degree		Year of Study
		1 (N = 273)	2 (N = 75)	3 (N = 15)	4 (N = 9)
		£	£	£	£
Total Expenditure	Mean	6732	6771	8270	7520
Total Expenditure	Median	6367	6550	7728	7801
Housing costs	Mean	1078	885	1436	1442
Housing costs	Median	540	118	1494	661
Living costs	Mean	4076	4301	4718	3446
Living costs	Median	3573	3888	4317	3185
Participation costs	Mean	978	1167	1414	2345
Participation costs	Median	782	902	840	723
Child-specific costs	Mean	477	327	433	266
Child-specific costs	Median	0	0	0	0
Other costs	Mean	123	90	268	22
Other costs	Median	0	0	0	0

3.46 The mean total expenditure by year of study is little changed from Year 1 to Year 2. Although there appears to be an anomalous spike in the level of expenditure for full-time HE sub-degree students in Year 3 the small numbers of students means it is difficult to offer any real comment on why the figure is significantly higher. It should be noted that sub-degree students typically only study for one to two years hence the small number of respondents in Years 3 and 4.

Table 3.26: Total and main types of expenditure by year of study ( FTHE Degree only)

FTHE Degree Only		Year of Study
		1 (N = 1085)	2 (N = 1037)	3 (N = 1010)	4 (N = 827)
		£	£	£	£
Total Expenditure	Mean	5743	6261	6534	6331
Total Expenditure	Median	5007	5801	6025	5839
Housing costs	Mean	1098	1100	1188	1145
Housing costs	Median	0	0	540	0
Living costs	Mean	3544	4024	4076	4012
Living costs	Median	3163	3724	3780	3673
Participation costs	Mean	893	899	970	948
Participation costs	Median	662	612	708	629
Child-specific costs	Mean	117	139	165	123
Child-specific costs	Median	0	0	0	0
Other costs	Mean	92	98	136	103
Other costs	Median	0	0	0	0

3.47 Levels of total expenditure for students by year of study show a good deal of consistency, with the largest year-on-year difference being the rise from £5743 in Year 1 to £6261 to Year 2. This is followed by a further rise to Year 3 and then a small dip in Year 4. Living costs and housing costs rise throughout the first three years and then dip very slightly in the final year, however, the differences are not very large.

"[First year] was quite difficult in the sense I was quite … maybe quite young and I wasn't maybe as savvy as I should've been with what I did with my money."

"You just have to, you know, you just have to be careful … you have to say to yourself, I could go out and get ratted tonight and wake up on a park bench somewhere and it'll be fun but then I won't have any money to go shopping at the end of the week and I like eating."

Table 3.27: Total and main types of expenditure by year of study ( FTHE Combined)

FTHE Combined		Year of Study
		1 (N = 58)	2 (N = 112)	3 (N = 025)	4 (N = 836)
		£	£	£	£
Total Expenditure	Mean	5961	6373	6916	6593
Total Expenditure	Median	5306	5966	6400	6271
Housing costs	Mean	1094	1053	1243	1210
Housing costs	Median	119	26	750	145
Living costs	Mean	3661	4085	4217	3887
Living costs	Median	3253	3760	3898	3566
Participation costs	Mean	912	958	1068	1255
Participation costs	Median	688	676	737	650
Child-specific costs	Mean	196	180	224	154
Child-specific costs	Median	0	0	0	0
Other costs	Mean	99	96	165	85
Other costs	Median	0	0	0	0

3.48 For the full-time HE combined sample there is a proportionately larger rise in total expenditure in Year 3, compared to the increase in expenditure from Year 1 to Year 2. Apart from participation costs, all expenditures dip slightly in the 4 ^th or later years compared to the earlier years. Participation costs rise on average from £912 to £1255 in the 4 ^th or later years - a rise of 38%.

3.49 The next set of tables examines expenditure for the different types of students by year and level of study.

Table 3.28: Total and main types of expenditure by final year of study ( FTHE Sub-degree)

FTHE Sub-Degree		Level of Study
		Non-Final Year of Study (N = 148)	Final Year of Study (N = 224)
		£	£
Total Expenditure	Mean	6529	7011
Total Expenditure	Median	6198	6555
Housing costs	Mean	1149	1004
Housing costs	Median	479	617
Living costs	Mean	3904	4283
Living costs	Median	3395	3888
Participation costs	Mean	980	1121
Participation costs	Median	810	793
Child-specific costs	Mean	417	455
Child-specific costs	Median	0	0
Other costs	Mean	78	148
Other costs	Median	0	0

3.50 There is little difference between the expenditure of final year students and non-final year students (£6529 versus £7011). The most likely reason for this is that most sub-degree students are, for the most part, HND and HNC students, whose period of study is usually two years or less. For all costs, other than housing costs, expenditure is marginally higher in the final year compared to the non-final year.

Table 3.29: Total and main types of expenditure by final year of study ( FTHE Degree only)

FTHE Degree Only		Level of Study
		Non-Final Year of Study (N = 3145)	Final Year of Study (N = 814)
		£	£
Total Expenditure	Mean	6146	6427
Total Expenditure	Median	5609	5881
Housing costs	Mean	1139	1102
Housing costs	Median	0	0
Living costs	Mean	3861	4069
Living costs	Median	3537	3752
Participation costs	Mean	910	986
Participation costs	Median	640	686
Child-specific costs	Mean	133	149
Child-specific costs	Median	0	0
Other costs	Mean	103	121
Other costs	Median	0	0

3.51 Around a fifth of the degree students in our sample are in their final year. Surprisingly even for this group of students, whose period of study is much longer (four years or more), there is no obvious relationship between the overall expenditure pattern of final year students and non-final year students (respectively £6427 and £6146). As with the full-time sub-degree students, for all costs other than housing costs, expenditure is marginally higher in the final year compared to the non-final year.

Table 3.30: Total and main types of expenditure by final year of study ( FTHE Combined)

FTHE Combined		Level of Study
		Non-Final Year of Study (N = 3293)	Final Year of Study (N = 1038)
		£	£
Total Expenditure	Mean	6230	6555
Total Expenditure	Median	5739	6029
Housing costs	Mean	1141	1080
Housing costs	Median	105	136
Living costs	Mean	3870	4116
Living costs	Median	3506	3782
Participation costs	Mean	925	1016
Participation costs	Median	677	710
Child costs	Mean	195	216
Child costs	Median	0	0
Other costs	Mean	98	127
Other costs	Median	0	0

3.52 Around a quarter of the full-time HE students in our sample are in their final year. Again, as with the full-time HE sub-degree and degree students, there is no great difference in levels of expenditure for those in their final or non-final year of study. For those in their final year the total expenditure reported is £6555 and for those in the earlier years the total is £6230, both of which are very similar to the overall level of expenditure for full-time HE combined at £6339 (Table 3.1)

Table 3.31: Total and main types of expenditure by final year of study ( PTHE)

PTHE		Level of Study
		Non-Final Year of Study (N = 275)	Final Year of Study (N = 245)
		£	£
Total Expenditure	Mean	10215	10721
Total Expenditure	Median	8459	8665
Housing costs	Mean	2047	1995
Housing costs	Median	1350	1659
Living costs	Mean	5710	6028
Living costs	Median	5110	5172
Participation costs	Mean	986	696
Participation costs	Median	782	580
Child-specific costs	Mean	1116	1425
Child-specific costs	Median	0	0
Other costs	Mean	356	576
Other costs	Median	0	0

3.53 For part-time HE students, again there is no great difference in levels of expenditure for those in their final or non-final year of study. For those in their final year the total expenditure reported is £10,215 and for those in the earlier years the total is £10,721. There is slightly more variability, compared to the full-time HE students, with all costs, so whilst housing expenditure is lower in the final year participation costs are also lower. All other costs marginally increase in the final year.

3.54 The next set of tables examines expenditure for the different types of students by whether they had taken out a student loan.

Table 3.32: Total and main types of expenditure by student loan ( FTHE Sub-degree)

FTHE Sub-Degree		Taken Out a Student Loan
		Yes (N = 227)	No (N = 145)
		£	£
Total Expenditure	Mean	7464	5813
Total Expenditure	Median	6877	5326
Housing costs	Mean	1320	658
Housing costs	Median	1080	0
Living costs	Mean	4322	3836
Living costs	Median	3908	3229
Participation costs	Mean	1117	984
Participation costs	Median	813	790
Child-specific costs	Mean	572	234
Child-specific costs	Median	0	0
Other costs	Mean	133	99
Other costs	Median	0	0

3.55 Thirty nine per cent of sub-degree students took out a student loan. Those who did not have a loan had lower total expenditure (£5813) than those who did take out a loan (£7464). This disparity reflects lower figures in every category of expenditure although the biggest gap by far is in terms of housing costs.

Table 3.33: Total and main types of expenditure by student loan ( FTHE degree only)

FTHE Degree Only		Taken Out a Student Loan
		Yes (N = 2912)	No (N = 1047)
		£	£
Total Expenditure	Mean	6560	5212
Total Expenditure	Median	6011	4610
Housing costs	Mean	1353	515
Housing costs	Median	720	0
Living costs	Mean	3998	3641
Living costs	Median	3690	3204
Participation costs	Mean	924	929
Participation costs	Median	630	708
Child-specific costs	Mean	167	51
Child-specific costs	Median	0	0
Other costs	Mean	118	76
Other costs	Median	0	0

3.56 In comparison to sub-degree students a much higher proportion of degree students (73%) took out a student loan. As with full-time sub-degree students, those who did not have a loan had lower total expenditure (£5212) than those who did take out a loan (£6560). This disparity reflects lower figures in every category of expenditure, bar participation costs, although again the biggest gap by far is in terms of housing costs, which are nearly three times higher for those who had taken out a loan.

Table 3.34: Total and main types of expenditure by student loan ( FTHE Combined)

FTHE Combined		Taken Out a Student Loan
		Yes (N = 3139)	No (N = 1192)
		£	£
Total Expenditure	Mean	6759	5344
Total Expenditure	Median	6202	4768
Housing costs	Mean	1346	546
Housing costs	Median	799	0
Living costs	Mean	4069	3684
Living costs	Median	3738	3210
Participation costs	Mean	966	941
Participation costs	Median	670	726
Child-specific costs	Mean	256	91
Child-specific costs	Median	0	0
Other costs	Mean	121	81
Other costs	Median	0	0

3.58 The majority (72%) of FTHE students had taken out a student loan. Students who did not have a loan had lower total expenditure (£5344) than those who did take out a loan (£6759). This disparity reflects lower figures in every category of expenditure, bar participation costs, although again the biggest gap by far is in terms of housing costs, which are nearly three times higher for those who had taken out a loan.

"I've never had any trouble with money and like I said I'm very tight-fisted when it comes to money. So I'm quite wise about what I spend and what I don't spend it on and because I don't drink, you know, I save a lot of money."

(Student who did not take out a Student Loan).

"I was working so much and the Student Loan was coming in every term, then it seemed like I had loads of money."

(Student who did take out a Student Loan).

"You're not going to be living rich or anything like that but if you know how to eat well and that sort of stuff you've not a problem."

(Student who did not take out a Student Loan)

"I can vividly remember at the end of one semester … normally everyone would be going to the union, 'no I can't, my loan has run out' 'aye me too'. We were just sitting there going 'I hate being skint'."

(Student who did take out a Student Loan)

Table 3.35: Total and main types of expenditure by student loan ( PTHE)

PTHE		Taken Out a Student Loan
		Yes (N = 49)	No (N = 472)
		£	£
Total Expenditure	Mean	7415	10766
Total Expenditure	Median	6554	8985
Housing costs	Mean	1287	2098
Housing costs	Median	1260	1755
Living costs	Mean	4567	5993
Living costs	Median	4554	5226
Participation costs	Mean	696	866
Participation costs	Median	524	700
Child-specific costs	Mean	752	1314
Child-specific costs	Median	0	0
Other costs	Mean	112	495
Other costs	Median	0	0

3.59 A much smaller number of part-time HE students (9%) took out a student loan. For those students who did, as Table 3.35 highlights, their average total expenditure (£7570) was significantly lower than those who did not (£10896).

3.60 The next set of tables examines the main types of expenditure for the different types of students by child-related costs.

Table 3.36: Total and main types of expenditure by child-related costs ( FTHE Combined)

FTHE Combined		Paying child costs
		Yes (N = 182)	No (N = 4149)
		£	£
Total Expenditure	Mean	14269	5916
Total Expenditure	Median	13938	5666
Housing costs	Mean	2115	1066
Housing costs	Median	1799	99
Living costs	Mean	6186	3834
Living costs	Median	6024	3509
Participation costs	Mean	1788	916
Participation costs	Median	1426	664
Child-specific costs	Mean	3894	0
Child-specific costs	Median	3627	0
Other costs	Mean	287	101
Other costs	Median	0	0

3.61 For FTHE combined students the vast majority (96%) were not paying child costs. The mean total expenditure of students who were paying child costs was significantly higher (£14,269 compared to £5916). Child-care costs at £3894 make up over a quarter of total expenditure for those students paying child costs.

Table 3.37: Total and main types of expenditure by child-related costs ( PTHE)

PTHE		Paying Child Costs
		Yes (N = 169)	No (N = 351)
		£	£
Total Expenditure	Mean	14999	8259
Total Expenditure	Median	14052	6970
Housing costs	Mean	2447	1818
Housing costs	Median	2115	1350
Living costs	Mean	7110	5256
Living costs	Median	6907	4554
Participation costs	Mean	985	785
Participation costs	Median	760	643
Child-specific costs	Mean	3875	0
Child-specific costs	Median	3435	0
Other costs	Mean	582	400
Other costs	Median	0	0

3.62 Around a third of PTHE students were paying child costs. The mean total expenditure of students who were paying child costs was significantly higher (£14,999 compared to £8259). Child-care costs at £3875 make up around a quarter of total expenditure for those students paying child costs.

3.63 The next set of tables examines expenditure for the different types of students by whether or not they worked during term-time.

Table 3.38: Total and main types of expenditure by term-time employment ( FTHE Combined)

FTHE Combined		Term-time Employment
		Yes (N = 2639)	No (N = 1692)
		£	£
Total Expenditure	Mean	6609	5927
Total Expenditure	Median	6116	5304
Housing costs	Mean	1119	1117
Housing costs	Median	198	0
Living costs	Mean	4195	3587
Living costs	Median	3839	3202
Participation costs	Mean	1029	842
Participation costs	Median	773	562
Child-specific costs	Mean	145	289
Child-specific costs	Median	0	0
Other costs	Mean	121	92
Other costs	Median	0	0

3.64 Around 60% of all full-time HE students in our sample worked during term-time. The average expenditure of those who did is £6609 and for those who did not the figure is £5927. Whilst most costs are similar for those working during term-time, for full-time HE students, there is a noticeable difference in living costs with those working reporting an expenditure of £4195 compared to £3587 for those who were not working term-time. It might be that students expenditure therefore varies in relation to their income from paid term-time employment.

"I sort of weighed up … could I go out and work and do my degree … or should I take out a loan and then worry about finding a job afterwards that's going to pay for it and I decided that the second option was probably best because there was no point in jeopardising my degree … from going out and getting job. I did work out what I had to pay each month for bus tickets and books and just like lunch and stuff … I did sit down and work it all out."

Table 3.39: Total and main types of expenditure by term-time employment ( PTHE)

PTHE		Term-time Employment
		Yes (N = 377)	No (N = 144)
		£	£
Total Expenditure	Mean	11741	7074
Total Expenditure	Median	10544	5578
Housing costs	Mean	2497	778
Housing costs	Median	2124	0
Living costs	Mean	6418	4395
Living costs	Median	5818	3871
Participation costs	Mean	911	689
Participation costs	Median	730	530
Child-specific costs	Mean	1369	979
Child-specific costs	Median	0	0
Other costs	Mean	546	233
Other costs	Median	0	0

3.65 Unsurprisingly, around two-thirds of part-time HE students work during term-time. Of those who reported not working, these students had an average expenditure of £7074. Those students who did work had an average expenditure of £11,741. Significantly, those students who did work reported higher child-related costs which may suggest the presence of younger children and associated child-care costs or school fees.

Conclusions

3.66 From this chapter, some general points can be made about the expenditure of HE students:

There is a wide variation in expenditure within and between the main student groups studied here.
The biggest costs facing most students are living costs followed by housing costs.
Child-related costs are significant for those students who have dependent children (a group which also reports higher living and housing costs, perhaps also as a result of having dependent children).
Child-related costs are mostly incurred by part-time HE students and mostly by female students.
Those students with the lowest housing costs were also those who were least likely to take out a student loan. One explanation for this finding is that students are staying at home in order to avoid accumulating this type of debt.
Expenditures for most students rise slightly throughout their period of study and then dip in their final year, perhaps as a result of the need to study and a reduction in time (and money) spent on leisure.
Working class students are spending more in almost every expenditure category.

Page updated: Wednesday, June 24, 2009

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