How To Make Money As A Student
Welcome to Moneyshots. Frank Money gives his expert advice on making money when you are a student.
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Step 1:
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Do I really have time to do a job?
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Now this is really up to you. Some courses such as medicine or law are far more intensive than other subjects such as art history.
So first off you got to weigh up whether you really have time to get a job and keep ahead of your studies. Don't over commit yourself or you might fail your degree.
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Step 2:
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Plan your year
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On the other hand, you may find that your student loan does not leave you with enough money to live on, in which case you'll need to plan your time carefully.
Get an evening job that wont disrupt your lecture timetable - something like a bar job, or pizza delivery person. Or get holiday work to earn your dosh.
Remember - a lot of other students will be having the same idea about getting a job at key holiday times, so plan in advance. The best jobs will go, and you'll end up working somewhere like an abattoir, or a mausoleum, for months on end!
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Step 3:
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What about my CV?
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You need to keep your CV up to date, so you can jump at a job opportunity should it arise.
It's a list of things you have done with your life - and is widely used in the job industry.
There are plenty of websites that provide guides to writing a good CV. Have a look at ukstudentlife.com for some cracking advice.
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Step 4:
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Where do I find a job
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Try the local newspapers, or job websites. Job websites will often have jobs advertised specifically for students in term time. Also check the notice boards at your university, there's always a few ads up there as many employers will advertise in the university or student union directly.
Have a walk around the town. Look in shop windows, cafes, and pubs for job adverts. If that fails go inside and ask on the off hand they might have something going.
Also, remember that the interest on a student loan is 3.2% - which is half that of most commercial loans. The best easy access savings accounts pay up to 5.1% including bonuses, and fixed rate savers can earn up to 5.16%. Savvy students who can survive without these funds could make a tidy profit of up to £300 over three years.
Another option is to put it into a cash ISA. Top cash ISAs currently pay up to 5.3% with a six month bonus of 5.05%. So it's worth checking out what's out there if you can afford to save the money. -
If your parents can afford it, you could get them to buy a house for you to live in. The single biggest expense for students is rent, and parents are often the ones who pay it. If they buy a house with several bedrooms - you live rent free - (hence more money), and they can charge other students to live there which covers the mortgage and maintenance costs. Then they sell it at a profit at the end.
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Step 5:
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Tax
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When you work during term time, any income tax and national insurance due will be deducted from your wages before you receive them.
Remember, you are not exempt from national insurance as a student. Everyone has to pay national insurance as soon as they earn above 97 pounds a week.
Just listen. Nobody has to pay Income tax on the first £5,035 they earn in a year. So at the end of the tax year, check out how much you have earned and see if you can claim some back.
One of the benefits of being a full-time student is that during your holidays, you shouldn't have to pay income tax. So long as you ask your employer for a P38 form, and then remember to fill it out, this tax will not be deducted from your pay packets during the holidays.
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Step 6:
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National Insurance Number
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Oh yeah, and one last thing - you need a national insurance number, to prove you're not an alien.
If you don't already have a NI number you must apply for one if you want to be able to work. To be able to apply you must be over 16 years of age and resident in Great Britain.
To apply for a NI number you will need to telephone the Jobcentre plus NI allocation service helpline on 0845 600 0643. They will make sure you need a number and arrange for you to undertake an evidence of identity interview.
