Billions spent by SA students every year

Student Village lifts the lid on student spending habits with its first ever SA Student Spending Report

.

Student Village, the leading local youth marketing specialist, partnered with the Department of Marketing and Retail Management at UNISA to conduct the research. R28 Billion is spent annually by students enrolled at tertairy institutions and it's interesting to see just where this money goes. 

Releasing the results for the first time in April 2010, what became most evident was that there is no such thing as an average student when it comes to how they spend their money. Understanding the differences between how ethnic groups and genders allocate spending is invaluable information for marketers targeting 18 to 24 year olds. For example, black students spend more on food and groceries, as well as toiletries and cosmetics, than any other group.

Students in general are serious convenience junkies with about 40 percent of their food budget spent on snacking each month. Black students shell out 47 percent more on fashion than white students every month, while Indian students spend more on entertainment, gifts, snacking and eating out than any other ethnic group. They also buy more bling and jewelry than all the other groups combined. Coloured students allocate more money to fashion than any other group, while white students spent six times more on cigarettes than black students. White students also spend more on petrol than all the other students combined.Other results gleaned from the SA Student Spending Report show that students are a cash-orientated bunch - only 9.6 percent of them have credit cards and only 16.5 percent have store accounts. On average, each student spends just under R3 000 a month, with their biggest spend being food, groceries and eating out.The research also challenges the “myth” among marketers that students' friends are the strongest influencers when it comes to what they buy. The research revealed that 23 percent of student purchases are brand-based, with friends (18 percent), advertising (18 percent) and parents (12 percent) being the next three strongest influencers. Read the entire report to understand more fully the following statements

1. There is no such thing as an AVERAGE STUDENT
2. Students are SPENDING more than you think
3. Where the MONEY goes every month
4. Guys are SPENDING 15% more than Girls
5. Students from separate ethnic backgrounds spend very differently
6. Students who RENT have more disposable income than students living at home
7. Students are serious convenience junkies
8. The Highest Value student purchase is clothing, shoes and accessories
9. Students save more than the average South African Household
10. Students are a cash orientated community
11. Friends' recommendations are not the biggest INFLUENCER
12. More Students would shop online if they had the resources
13. Mobile payment currencies have some way to go in building students' trust
14. What students want from you
15. Money is a low ranking Motivator
16. Students would rather pay off debt than splurge their first pay cheque.

The media has also taken a massive interest in the results - check out what's been featured:

• Natal Witness -– Students Spend big bucks on booze, bling
• The Times -– Bling is big with varsity students
• YFM Radio -– Student Spend featured in the news

The figures and analysis in this blog are just asmall fractionof the insight available from the research. Access the full research, which contains a much wider range of information: detailed facts, figures and insight that are crucial to understanding how young people are spending. Contact: marc@studentvillage.co.za / +27 11 885-3918 / www.studentmarketing.co.za