How do low-paid or unemployed students afford expensive lifestyles?

[ByAmusedJadeFish]

How on earth do people have lifestyles if they are low-paid?
I know some students at uni with designer gear, expensive dining habits etc. and to my knowledge they are unemployed.
My theories are

1. rich parents
2. rich bfs
3. sugar daddies
4. illegal/undeclared cash flow e.g. crime, sex work

Op you have no way of knowing anyone elses finances.....so stop guessing?

Nearly all rich parents or (less often) credit, IME.

If a student hasn’t got a p/t job then it’s probably rich parents. (Or in the case of my dd, rich grandparents). She does work but has had things like expensive watches & a designer handbag bought as birthday presents.

Rich parents

They probably have matured child trust funds in the tens of thousands. Which usually came from parents.

Why does it have to be rich parents? I’m not rich and none of my DD’s friends parents are. I’m a minimum wage carer. I’ve been putting money away for her since she was born. She’s literally moved out just this morning into a stunning apartment I’ve bought for her which she’ll be sharing with 2 friends, who I am charging a fraction of what the market value would be for that sort of accommodation for students in my area. She got the maximum maintenance loan due to my low income, she’s had 3 part time jobs since the beginning of this year while doing her a levels. She’s starting driving lessons soon and unbeknownst to her Ive also got enough saved for a modest car with first years insurance. I know other parents on low wages who have paid in consistently to the child trust fund the government opened for them at birth, and others who opened and paid regularly into premium bonds and have done pretty well out of those. Some people have just thought ahead and worked our arses off, or have got plain lucky, but my daughter and her peers could certainly appear very well off to some other people and we live in one of the most deprived areas in the uk

Just themselves to spend money on! No kids, no house. They can avoid spending on anything they don't want to, and focus on spending on what they want.

Often it's inheritances from deceased grandparents, aunts and uncles. There's a ever growing trend for elderly to "leap frog" down to the younger generation rather than their own children, quite simply because they know how difficult it is for the youngsters, whereas often their own children are approaching retirement themselves and simply don't "need" the full inheritance if their mortgage is paid off and/or they're getting a tax free pension lump sum. I know of lots of grandparents who've set up trusts for their grandchildren specifically to pay for university costs and/or a deposit for a house.

I think it's a consequence of people living longer. I.e. someone in their 80s probably has children who are 40-60, who are more often than not already financially sound, already had their children and living in a suitable family home, etc. Whereas a few decades ago when people tended to die younger, someone in their, say, 60s, had children in their 20-40 more likely to be in need of an inheritance to help them buy a bigger house to cater for a growing family, etc etc.

Yes! And those who do work, even part time, are earning minimum wage which is pretty good when you don't have housing costs, children, utilities etc to pay for, so basically just "spending" money, hence the clothes, socialising, etc. Also if working, say, "half" full time hours, say, 20 hours per week on average (typical for those doing a few shifts in retail or a restaurant or fast food outlet), their earnings will be below the tax/NIC thresholds, so no deductions etc., so they get the full current minimum hourly rate straight into their pocket!

My son was friends with some overseas students at uni (though they "seemed"/ sounded English as had been to boarding school here so it wasn't immediately obvious they were from overseas). They were all from very well off families and had generous allowances.

Then there are students who get the max loan because they live with mum who has a low income. But also a wealthy (and involved) dad who did well in construction etc and gives them money on top. And/or generous grandparents.

But unless the information is volunteered you have no idea.

I'm an unemployed mature student and have an expensive lifestyle, DH is a high earner. He's definitely not my sugar daddy! No rich parents, they are on state pension.

It's everything other posters have mentioned already - I'm pretty sure it's only very, very rarely prostitution (sugar daddies is a form of prostitution, no need for a separate category unless you're going to sub divide all the different ways to be prostituted).

Mind you an aquaintance tried to set up a go fund me for her student lifestyle, having tried to make money from social media and being a "photographer" despite no skills or experience (but a nice camera bought by her parents for her birthday) and believing that she didn't have time to work because of her travel plans during the holidays, which she had omitted to budget for...She had also convinced herself she was going to win a financial prize, which she didn't win - so she took to go fund me.

You never know until you try I guess... Although I think she made about £20 and her parents bailed her out...

Bank of Dad, Mum and`GPs. 🙄

Most students are funded by their parents.

how can this be news?

I went to uni in Sheffield ten years ago where rent was cheap and I got the full loan because my parents income was low. After rent I had about £70 a week and my dad used to send me £30 every Friday so I had £100 to play with. All I ate was beans on toast and pesto pasta so my weekly shop was about £20 and then I had £80 a week for nights out/meals out or whatever else. At Christmas I got nice clothes and a new bag or trainers or whatever.

Credit and loan

My DD has an enviable wardrobe of designer gear - mainly picked up for next to nothing in charity shops.

I mean, I have questions.

How have you managed to sock away enough to buy a whole apartment, even in 18 years, on minimum wage? While paying your own outgoings?

If minimum wage is around £26.5k per year, where has an apartment's worth of saving come from?

Parents who save for years, wealthy parents, and most likely GPs who died and parents sold the house and helped fund the student lifestyle. Why on earth would your brain even go to sugar daddies ? Most students are funded by parents in combination with a student loan plus part time work. Its always been thus.

I've always concluded that it must be rich parents.

Like am earlier poster, our DD shops solely in charity shops and buys and sells on vinted.

I mean reading that post all I could think of was bull.....

Many students have loans, credit cards and or parental funding. Yes some work. I don't know why you leap to sugar daddies or illegal work?! Or why you care.

Students who spend their money on expensive meals out might not spend much on ketamine. Or someone who buys designer clothes doesn't ever eat fast food or get coffee? They're all different and their finances are private.

But they may not be especially responsible with money yet as they're just starting out in life.

A lot of assumptions there. For a start I’m not sure where you’ve got that figure from as it is way off. I haven’t bought an entire apartment in one go (may have needed to word that clearer). I’d already paid most of my mortgage off my property when I had my dd (yes it is very possible on minimum wage). I’ve saved and put a deposit down on her apartment, I put it on Airbnb for a few months until she was ready to move in which temporarily paid the mortgage, plus a bit more, and now the money from student lodgers will pay half of the mortgage and I’ll pay the rest. She’s got the full maintenance loan which I’m paying back at £32 a week. After her bills her maintenance loan leaves her with £135 a week spending money, she’s now working one ten hour shift on the weekend in a pub giving her a total of £243 spending money a week (without tips and she gets a LOT of tips). We’ve just accessed her government trust fund which I’ve never paid into but she got just over £4600 from that. I’ve got around £3.5k in an account she doesn’t even know about yet from an account I opened when she was a baby and paid around £5 a week into. Also vinted. For eg she’s currently living in a pair of doc martens which are still in store for £260 which she bought in immaculate condition for £79, most of her other clothes are from vinted or shein, even in her shein clothes she’s always extremely smart and put together. I mean there’s THOUSANDS of potential situations where students could be/appear well off that just require a little bit of thought when they’re born and not pissing all your money up the wall, weird how the consensus on here is that all the parents must be rich or the students are prostituting themselves ffs 😂

I asked Google how much full time UK minimum wage was annually, @Peoplemakemedespair . Are you saying that's too little or too much?

Since this is the anonymous internet, surely you can tell us the numbers and how you did it.

You're saying you've put the deposit down on a SECOND mortgage (since yours is currently still mortgaged) in your name, or hers? Who is on the paperwork to pay this mortgage, and for how many years?

I'm a single parent, working three jobs, mortgaged past retirement age on a tiny terrace in the north, with no idea how you've managed this.