Students boost pay packet

By HELEN LOVELESS, MAIL ON SUNDAY ENTERPRISE EDITOR
Updated: 06:01 EST, 1 December 2004

IT used to be baked beans, cheap beer and regular begging visits to the bank manager for a 'small' extension to the overdraft.

But it seems students are becoming more financially savvy and less work-shy. That's according to a new report, which predicts students will earn nearly £1bn from summer jobs this year.

Research by the Royal Bank of Scotland reveals around 80% of students plan to take a temporary job this summer and two-thirds intend to work full-time.

More impressively, three-quarters of students surveyed intended to use the money earned in the summer break to offset their living costs rather than frittering it away.

On average undergraduates expect to earn £1,568 by working in the holiday, the research shows. It is estimated this would cover around nine weeks of the average student's social and accommodation costs.

Students in Glasgow and Southampton are hoping to be even better off, topping the predicted earnings list at £1,931 and £1,778 respectively.

Yet not all students will be working to clear their debts. It is estimated more than 9,500 will do unpaid work experience during the summer holiday.

Andrea Aitken-Page, head of student banking at the Royal Bank of Scotland said: 'Today's students face a whole range of financial challenges. It is encouraging to see from our study that undergraduates are taking the initiative in tackling these hurdles.

'Not only do they appreciate the value of summer work in offsetting day-to-day living costs, but they also show long-term foresight about the importance of using it to earn work experience.'

For students planning to work over the break, RBS advises finding out the average rates of pay for different kind of jobs, so that you know what you should be earning.

It also recommends reading up on your employment rights, including checking how much tax you should be paying and how to claim it back if you have overpaid.

Student who open a new account with Royal Bank of Scotland before the end of August will be able to claim 40% off any Vodafone pay-as-you-go mobile phone.