Earning equals learning for young people

Whilst many young people are preparing to head off to university this autumn, over four in ten (43%) admit that the prospect of acquiring debt whilst at university is putting them off going, according to research by Alliance & Leicester.

Instead they are more attracted by the prospect of earning their own money with over half (54%) of 16-21 year olds who are already in employment and not planning on going to university attracted by the prospect of earning cash straight away.

Increases in tuition fees together with the rising cost of living mean that university is becoming even more expensive. As a result more young people have started to be put off by the financial burden. With students likely to rack up an average of £20,000 worth of debt over the duration of their degrees, it is not surprising that some students opening their GCSE or A level results this summer are attracted to the benefits of starting their careers straight away.

In fact, for many of today’s ambitious youth, university isn’t a pre-requisite for securing their chosen careers:

One in ten (10%) 16-21 year olds who do not plan on going to university say they think further education is “a waste of time”

One in seven (14%) say a degree wasn’t required for their chosen career.

Once in their first job, many 16-21 year olds will be faced with making their first important financial decisions. With this in mind, Alliance & Leicester recently launched its Premier 21 account, which is targeted at 16-21 year olds who go straight into work. The account not only offers the best rate of credit interest on a current account from any bank on the market, but also a host of other features which help in managing money better:

A best–buy credit interest rate paying 10% on all balances of up to £1,000 fixed for at least one year from account opening – meaning that the money they earn works harder for them
After the offer period, the account pays 4.75% (one per cent below Bank of England base rate)
Linked PlusSaver account paying 5.25% AER interest rate
Minimum overdraft of £250 subject to minimum age of 18 years and credit scoring
Visa debit card

Easy switching service
Free mobile phone top ups via Mobile Banking
Free mobile banking until the end of 2007

Andy Bayes, Head of Current Accounts at Alliance & Leicester said: “Many 16-21 year olds now make the positive choice to go straight into work rather than university and as a result are very career driven. It is encouraging to see that by taking this route many people become financially savvy with their money from a relatively early age.

“We think it is important to recognise those who are just starting out in their working life and offer them support, especially in the first stages of their professional lives when they are likely to be making important financial decisions.

“With this objective in mind, the Premier 21 account has been launched to allow this group to maximize the potential of their hard earned cash. The account offers the highest credit interest rate on the high street to help make their pay packets stretch further.”

Premier 21 also offers customers tips on how to realise their ambitions with the chance to participate in acelebrity mentor scheme which brings together celebrity role models who have made a real success of their careers despite not going to university themselves to provide advice and mentoring opportunities for 16 to 21 year-olds who are starting out in their careers.

By signing up for a Premier 21 Current Account at prem21.co.uk customers gain exclusive access to hints and tips for breaking into their chosen industry through podcasts, web chats and the ultimate prize - a personal session with one of 10 celebrity mentors. The mentor scheme kicks off on the 20th August with the first mentor day hosted by celebrity singing couple Dave and Carrie Grant of Pop Idol fame.

Andy Bayes added: “By combining excellent rates of interest, and the supportive structure of the mentor scheme, Alliance & Leicester has created an account which aims not just to help young people in employment by giving them a great financial foundation, but alsoto inspire young people to be the best they can be”.

To learn more about the market leading Premier 21 account and the mentor programme visit prem21.co.uk.