Core insights
So what is our audience thinking?
Is it really just about the cost of my degree?
However, for the remainder, the picture is a little more nuanced.
Clearly there is an objective reality at play here: it does cost more to support yourself at University in today’s economic climate, and you will have a student loan at the end of it. For some young people these are absolute deal breakers.
Our research with sixth formers and Year 11s suggested that the concept of student debt is abstract, as they struggled to articulate what impact it may have on their future lives, an unimaginable three years away for most!
We all have an innate inclination to perceive future costs as less important than immediate gains, and this temporal discounting is even more pronounced in an age group whose experience of money management is limited.
While attitudes to their future prospects vary, Gen Z are more likely than previous generations to believe in the power of their own agency when it comes to earning a living and this fuels an optimism that things will simply just work out ok for them.
The complexities of the rules around repayment of student loans is little understood by sixth formers or parents (or apparently the media). The relationship of repayment value being linked to level of earnings is not as potent a concept as the absolute value of the loan or the interest payable. Again, the impact of this varies by audience. For sixth formers the nuances are often lost and the whole argument parked as something to think about in the future. Parents, postgraduates and mature students are more likely to have the motivation to really explore the numbers, however we cannot discount the impact of scary stories about the ‘burden’ of a debt that could take 40 years to re-pay6.
Will I have enough money to enjoy the experience?
The realities of financing day to day living while at university are another key consideration for our audience. Data from The Focused Generation tells us that 23% of prospective students did not think they could afford to go to University. While this qualitative data indicates that it is less a concern than taking on a student loan, we found a slightly different take out when we explored the issue in qualitative groups and interviews. It was a topic where our respondents talked with greater engagement and where individuals talked in specifics about how it might impact them.
In many ways this is unsurprising when we consider things from a behavioural science perspective. Compared to the abstract impact of loan repayments on an abstract future income and lifestyle, more immediate concerns such as mobile phone payments, gym memberships, food and drink are very real.
As agencies and marketing departments we also need to be alive to the culture change around what is important to young people now when we look to paint a picture of the social side of University and its associated costs. Taking drinking as an example, cost is one factor impacting the increase in numbers of students who do not drink alcohol but an increased focus on wellness is another strong influence on the trend.
The ability of parents to provide financial support is a huge consideration here and unsurprisingly the demographic background of potential students is a major differentiator of attitudes. Within our qualitative research while all groups acknowledged the need to consider how they get by day to day, there was a massive difference across the spectrum with some blithely accepting that parents will provide, while others responded pragmatically with plans to help support themselves while they study. Communicating how your university helps with this could be the deciding factor behind their application.
We have seen a number of Universities sell their location in terms of its cost effectiveness, some more successfully than others. It’s potentially a compelling USP, but again the tone and nuance of the messaging is key – students are quick to judge the difference between ‘cheap because it’s not as good’ and ‘a smart choice to make the most of my budget’.
Commuting to University while living at home delivers an obvious cost-saving. Historically this has often been perceived as a downgrading of the University experience; that students miss out on the benefits of independence that living away from home affords them. That attitude is changing as the numbers change, but recruitment strategies need to be careful to actively position the alternatives as different but still able to deliver a fulfilling university experience.
Do I want a traditional ‘job’ anyway?
The idea of a conveyer belt from school to sixth form to University to graduate trainee scheme is outdated. However, the inference of much current recruitment advertising plays directly into this trope. Of course, career success following university continues to be a primary motivator, but what does that look like for our audience now?
While many sixth formers do have a very specific idea of the career they want to pursue, for an increasing number, the advantage of a University degree is that is opens options for multiple different paths in the future. Gen Z are much more open to mobility in their careers than earlier generations: in the UK they spend an average of 1.7 years in each job8, significantly shorter than the national average of 5 years for all workers. Being accustomed to a life where instant gratification is everywhere from home delivery of a burger and fries to likes in a TikTok post, it is easy to understand why it feels preferable to move employers to get what you want, rather than building a career in one organisation.
Nor is employability a catch all metric. Entrepreneurism used to be something that evolved from time served in the corporate world, but the ubiquity of start-ups and influencers, and the noise generated around these on TikTok, Instagram and YouTube means that being your own boss from day one feels very achievable for this generation.
The shape of work has changed too – hybrid working, digital nomads, starting a side hustle, portfolio careers – all are concepts that weren’t on the radar of even very recent generations. Positioning university as a passport to these options potentially increases its relevance and appeal.
But whatever their future career aspirations, this generation are less inclined to see professional status as an ultimate prize worth compromising for. Many have seen the impact of ‘having it all’ on their parents, and they hold their personal wellbeing and mental health in much higher regard. This is a really profound shift in thinking about work life balance.
When thinking about their future careers,
%
of Gen Z and Gen Alpha prioritise happiness
%