Debt – a habit learnt young

Getting 50% of young people to university is a declared goal of the UK Government.

Yesterday was the day when the results of the pre-university exams were announced and yet again (25 years running) they showed an increase in the pass rate and the numbers of people with the grades to attend higher education. There are many hours of debate about the implications of the last two facts but what should be of interest to the marketer is how they will change the spending power of the young.

According to the UK’s Barclays Bank, reported by the BBC, the outcome will be huge levels of student debt. During the next seven years the average level of debt, on entry into the workplace, will rise to nearly £34,000. These figures don’t assume an increase in the cost of university tuition fees.

This is just another factor that should make the marketing community think about the changing profile of consumer power. For sure, paying off a student loan will affect the individuals buying habits.