MORE than half (54 per cent) of university students say their financial situation is having a negative impact on their mental wellbeing, a survey has found.

Just under half (49 per cent) agreed that it has had a detrimental impact on their social life, while 45 per cent said they are losing sleep thinking about money, according to the research for HSBC UK.

The vast majority (94 per cent) of university students surveyed said they have made changes to their financial behaviour in the past six months.

More than half (55 per cent) have cut back on spending, with the other popular strategies being looking out for student deals (40 per cent) and using more vouchers (29 per cent).

Nearly three-fifths (57 per cent) of students said they need to borrow money to cover their spending.

Many students also said they had chosen to study closer to home to save costs, with proximity to home being the most important factor for 30 per cent of prospective students – the third most important consideration behind the university’s reputation (36 per cent) and the quality of the course (42 per cent).

The research was conducted to mark HSBC UK launching its newest student account.