As students head back to university, Barclays research shows that nearly half are pooling funds to save money. By using ‘Kittynomics’, putting their money into a kitty, to manage their living expenses they are making significant savings.
The Barclays research reveals that some 45% of students are using ‘Kittynomics’ to save money and saving £193 million annually as a result as they pool their money in a kitty to make group purchases with friends.
Each student contributing to a kitty saves an average of £171 a year on a variety of joint expenses, from bills (heating, household supplies etc) to group nights out and birthday presents.
Almost 10% of students save in excess of £750.
Students are carefully managing their kitties, with around 30% using online banking to keep track of the funds.
The average kitty has four members, some in excess of 10, and many students are allocating clear responsibilities to ensure things run smoothly, ensuring they have
- treasurers, responsible for financial decisions
- brokers, planning the spending and collecting money
- asset managers, recording any change left over for future purchases.
Kitty money is mainly used for traditional shared expenses like household supplies and bills, students though are also using the pooled funds to pay towards their social lives – including nights out, friends’ birthday presents and group holidays and trips away.
Not only does ‘Kittynomics’ pays off for the majority of students as they say shared pots make their money go further, for many it also helps make them more aware of their personal finance.
Dan Wass, Director of Current Accounts at Barclays, said: “It’s very encouraging to see that so many students are taking a sensible approach to managing their money to help them cope with university’s financial pressures.
‘Kittynomics’ is becoming an increasingly popular way for students to financially plan on a shoestring as it can save them money each term. The budgeting and communicating involved are key life skills that will help see students through university and beyond.”
Oxford vs. Cambridge
It seems students from Oxford universities are the most likely to contribute to a ’Kittynomics’ model (60%) compared with students from York (41%), Lancaster (40%) and Cambridge, where just a third (33%) pool money.
Interestingly too, those Cambridge students that are part of a kitty contribute smaller amounts – an average of just £11 per month, compared with Oxford’s students’ £19 and the £34 the average Bristol student contributes.