Research among sixth-formers reveals that school leavers are underestimating the cost of living at university by a potential £110 million compared to undergraduate spending figures.

2006 school leavers are potentially underestimating the cost of accommodation at university by £47 million and the cost of living at university by £63 million, according to the Royal Bank of Scotland.

Undergraduates matriculating in 2006 expect parents to contribute £442 million to term-time living expenses during first year at university and more than half of these intend to take a part-time job to help offset the cost of term-time living.

A lack of confidence in their budgeting skills and exam pressure means the majority (60%) of school leavers haven't had time to consider student finances yet.

However, those who have considered their potential outlay are much nearer the mark and some financially conscientious students have even over-estimated their spending.

The Royal Bank of Scotland student royalties account allows students to open their student account early in order to get student finances sorted and focus on exams and planning ahead for university. The account also offers a market-leading overdraft of up to £2,500 to help out if funds do get tight.

Students headed for Aberdeen underestimate the most

The RBS financial realism report, conducted among students applying to study in 15 of the UK's most popular university towns, reveals that students heading to study in Aberdeen are underestimating the cost of university the most. The average Aberdeen applicant estimates that they will spend a potential £2,519.90 each term on living and housing costs.

However, RBS undergraduate spending data indicates that students studying in Aberdeen actually spend a potential £3,180.50 each term on rent and living expenses, meaning new first year's could face a deficit of £660.50 per term.

University towns are ranked in order of the amount by which sixth formers heading to those towns underestimate the cost of living and accommodation.

Encouragingly, not all sixth-formers have got it wrong

Whilst most sixth-formers are wide of the mark in anticipating their future term-time spend, some are bucking the trend and getting close to, or even overestimating, how much they will need to budget at university.

Some interesting geographical trends are evident as students heading for Manchester, Nottingham and Edinburgh look set to be well prepared for their forthcoming financial commitments. Interestingly, Scottish rival cities, Aberdeen and Edinburgh, top and tail the league table with students heading north of the border underestimating or overestimating the most.

Sixth-formers more clued up on the essentials

The average UK sixth-former underestimates the amount they will potentially spend on alcohol by the greatest amount. Sixth-formers estimate they will spend an average of £186.30 per term on alcohol, whilst undergraduates actually spend an average of £274 each term, a deficit of £87.70, perhaps suggesting that this year's cohort of undergraduates will be a more health-conscious bunch.

Sixth-formers also underestimate the amount they will spend on clothes by £27.50 per term and the amount they will spend on telephone and mobile phone bills by £15.60 each term: costs which soon mount up when on a tight budget.

It's not all bad news however, as when it comes to estimating the more essential costs of university life, sixth-formers are much closer to the mark.

On supermarket food shopping for the term, for example, sixth-formers on average underestimate their potential average spend by just £6.20 and for books and course materials, the studious bunch actually overestimate their average potential termly spend by £39.20.

Contradicting the stereotype of students who prefer to take their laundry home, the first year undergraduates of 2006 are also overestimating their potential termly spend on laundry by £31.30.