Students just wanna blow cash

Students would rather blow their dough on their partners, clothes, alcohol or entertainment with friends than save it or pay off their debts.

This is according to the 2014 Student Spending Report, released in Johannesburg yesterday.

When asked what they would do with a R5000 gift, none of the 3646 students surveyed suggested any long-term plans for the money.

The findings are based on a survey conducted among students aged 18 to 24 on campuses and online by student marketing specialists Student Village earlier this year.

Students' annual contribution to the economy increased to R41.1-billion from R39.5-billion last year - with a sizable chunk of their money (R8.4-billion) going to groceries and takeaways.

This is followed by technological gadgets and electronics (R6.1bn), clothes and shoes (R5.5bn), alcohol (R3.3bn) and toiletries and cosmetics (R2.1bn).

The average spent on living expenses is R45216 compared with a national average of R25208 - almost half that amount.

Nearly 80% of students' disposable income comes from their parents, about 14% is earned from part-time work and 10% is sourced through bursaries and various sponsorships.

Less than half (41%) of students saved between R1 and R250 a month for what they called "rainy days" - also known as shopping, drinking and entertainment cash mid-month.

University of Johannesburg student Reuben, a survey respondent, said: "Most of my mates would have a wardrobe full of alcohol, but would ask me for a bar of soap on the fifth of the month."

Student Village CEO Ronen Aires said lifestyle plays a major role in students' spending habits.

"They are at a point in their lives where they are trying to establish their own identity and an important part of that discovery is their image," he said.

While black students spent most of their money on toiletries and cosmetics, takeaways, gadgets and extra tuition last year, petrol and car repayments were now their largest expenses, the report said.

Said Aires: "This year a car became the ultimate expression of freedom and independence."

Male students overtook their female counterparts this year and were found to be spending 67% more on contraceptives.

The female students spend 65% more than their male peers on takeaways - opting for healthier meals - and 21% more on recreational and sports equipment.

Surprisingly, 44% more was spent on "bling" and jewellery by males than females - and young men spent 36% more on alcohol.

Other findings:

• Indian students spent more on entertainment; coloureds on fashion and takeaways; and whites on alcohol and cigarettes.
• The highest value purchases are cellphones. BlackBerry, Samsung and iPhone are popular.
• Of the 30% of students with credit cards, 35% have outstanding balances owing.