How the Cost of Living Crisis is Impacting Students

The cost of living crisis is one that’s been brought up constantly in the post-lockdown world. Inflation is at an all-time high, with the UK expected to go into full-on recession within the next year. The solution to this crisis has been debated heavily, with the Opposition suggesting tax cuts that would do nothing to help poor people and instead help out the people at the top. Part of the Government's solution was to put money directly into the pockets of those that need it. Over the course of three months, most people that earn under $70,000 a year will be paid $350 to help ease the pressure caused by rising costs.

The rising costs countries all over the world are seeing are from a perfect storm of economic issues. Inflation globally is high as a result of Covid-19, supply chain issues, and, of course, the invasion of Ukraine.

“There is no easy fix for the cost of living, as we cannot control global inflation, but we do see it as our job to provide targeted and meaningful support to help take the hard edges off for Kiwis feeling the pressure through the worst of it,” Jacinda Ardern said in her press release about the payments.

$350 could be used effectively in lots of places. It could get you one week of rent in Mount Victoria, three and a half full tanks of petrol, or one head of lettuce at New World. I put my first payment straight into my savings account, which I immediately transferred to spend on getting drunk. I’m aware of my privilege, and I know the cost of living payment will be a relief for many people who are struggling to keep up with rising costs.

Students are being hit especially hard by the cost of living, supermarket prices are hitting the roof and are making huge profits as a result. Earlier this year, Countdown announced that they were freezing the prices of ‘essential items’ to help with rising costs. However, the essential items are not things you’d expect a struggling household to include on their shopping lists. Toilet paper isn’t included, but fresh salmon is. This bit of performative assistance doesn’t do much to help people that are trying to find ways to put food on the table for themselves and their families. Food prices rose nearly 7 per cent in a year, and freezing the price of desserts does nothing to help.

Sam, a third-year student at Massey, says that managing limited student loan funds is becoming harder as prices continue to rise.

“Budgeting for food shopping, transport costs and rent is a challenge, even if you’re doing all the right things. I try to buy in bulk, keep the freezer stocked and plan out my meals; but if anything unexpected comes up that week you’re basically fucked. I’ve had to ask my parents for money a few times, and saving for anything is completely out of the question.”

Sam says he knows people who are choosing to skip meals, or not turn on the heater in order to save money.

“It’s dehumanising, even though we’re exhausting ourselves to work and study it’s still not enough to be comfortable. I sometimes skip lectures so I can go to work because I don’t have a choice.”

StudyLink has increased their living cost loan to $281.96 a week to reflect how expensive it is to be alive. During my last year of uni it was $242. This extra amount will be helpful in the short term, but it means students will have an even heavier student loan to work through when they graduate. First-years who take maximum living costs out and are doing a three-year degree will have roughly $4,500 more loan to pay off than people who graduated in 2021.

Obviously, the cost of living crisis is not going to be solved by me furiously doing inaccurate maths equations. However, it’s also pretty obvious that more needs to be done to help the people who are really struggling.

On a lighter note, I have some examples of what some people spent their first cost of living payments on.

Mason, Massive Editor, doesn't remember what it went towards.

“I haven’t spent mine on anything specific. I imagine it probably covered the four nights I got Uber Eats last week.”

Fourth year student Eloise decided to spend hers on Wellington on a Plate burgers.

Ash, a recent graduate, used hers to pay off her Afterpay.

First-year Daniel used his payment to buy two 50 bags and a double cheeseburger.

Inflation supposedly peaked in June, so fingers crossed prices start to fall shortly and we can all take a breath and be able to afford a block of cheese again.

The next cost of living payment will arrive on 1 September, and should hopefully provide some more relief for those that need it, and buy Mason some more Uber Eats.