Students need to budget if part-time work proves tight

Students wondering whether that part-time job they are considering will cover their living expenses while on campus can now come to HSBC for help with their household budgets.

HSBC has developed an interactive student advice website, talkingmoney.hsbc.co.uk specifically designed to give students and recent graduates the opportunity to share their experiences online and to advise on pressing issues such as finding part-time work and the importance of budgeting.

At a time when rent, food and the general cost of living are on the rise, students are increasingly turning to part-time employment to cover expenses while at university.

The National Union of Students recently released research, funded by HSBC, which showed that around three out of four students rely on part-time jobs to help make ends meet. This reflected statistics from the Department for Employment and Learning that showed that occasional or weekend work contributed 27 per cent of a student's total income and part-time work contributed a substantial 79 per cent of a student's total income.

But the typical work they take on - bars, restaurants and weekend work in shops - is likely to become harder to find as more employers feel the pinch of the credit crunch and cut back on staff. So students who are going to rely on part-time work need to really think about the likelihood of finding that job and what they might do for money if they lose it.

Lucy Payne, HSBC's Youth and Student Manager, said: "The unemployment rate amongst students hasn't risen much to date and, in fact, there is a lot of anecdotal evidence of migrants from Eastern Europe now opting to return home, which could make things a little easier for students seeking work.

"However, students need to be prepared for the possibility of not being able to find a part-time job as easily as they'd hoped. Budgeting is absolutely critical if you want to keep control of your spending and for students who want that financial freedom during their time at university, this is a very important skill to learn."

HSBC offers a range of services to help students understand the importance of budgeting and how to stay in the black. HSBC's student account offers:

interest free overdraft to a maximum of £2,0001, available up to:
£1,000 interest-free in first-year;
£1,250 in second year;
£1,500 in third year;
£1,750 in fourth year; and
£2,000 in fifth year (depending on the course studied);

Specialist student advisors in branches up and down the country, 95 % of which are within two miles of the top 100 universities in England and Wales;
6 % AER variable (5.84 % Gross) credit interest on balances up to £1,000 during first year;
HSBC's student website, talkingmoney.hsbc.co.uk providing advice and an interactive online service to all students;
ATM alert when overdraft limit is about to be exceeded; and
Online budgeting tools to enable students to manage their finances;
2 years free annual travel insurance.