SAVVY UNDERGRAD ‘I’VE SAVED £1,000’

Mark Reynolds, pictured below left, is among a growing number of financially savvy students putting some of their loan into savings. Since he started at Keele University in September, Mr Reynolds, 18, has saved just over £1,000, about one fifth of his loan, in a five-year Virgin Money account paying around 3pc in interest.

Research from moneysaving app Circle and online forum The Student Room suggests 30pc of students are taking care to invest their unspent loan.

“I’ve always tried not to waste money and I’ve never seen the point in spending when I didn’t have to,” he said. “I’d heard lots of stories of students struggling financially.

I drink occasionally and I do go out – but I tend to make friends with other people who don’t drink a lot either.”

Mr Reynolds, who is studying education and history and aims to become a teacher, said he had no fixed plan as to how much he would save but assessed his spending after his first term to put together a budget.

He pays his housing and living costs with his loan and puts the majority of the remainder into the deposit account. “Leftover money will go towards a deposit for a property,” he said.