Graduates amass more debt than first anticipated, suggests a Norwich Union report, as an additional £1800 is needed just to get themselves through the office door.
A study of over 500 university and college leavers indicates the cost of work clothes, books and equipment, a car and grooming tends to cost the average graduate an extra £1800 to start their first day’s work, alongside the average £13,000 debt amassed during their studies.
NU suggests the cost of preparing for the working environment is:
- Work clothes - £230
- Books and equipment - £50
- Car - £1500
- Grooming - £24
NU suggests there is a further financial shock for most graduates as their starting salary is often around 30% lower than they had expected to earn once they graduate.
An Institute of Employment survery indicates the average starting salary for graduates is £16,000 or a monthly disposable income of just over £1,000, whereas the average debt acquired to complete a degree and start work is the equivalent of a year salary, in addition to an overdraft with the bank.
That said, almost a quarter of those questioned admit their basic outgoing expenditure is more than their monthly wage, so one-third have no money left over at the end of the month.
One-fifth of the 500 questioned spend £100 or more towards debt repayment while more than a third keep their costs down by living at home and paying rent to their family.IFAonline
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