3 July 2014
Student loans running low, £150 flights to New York, New Super ISAs…
Half of students ‘run out of money’ between loans
A survey by Blackbullion found that 83% of students admit that they have a knowledge gap when it comes to budgeting and that more financial education is needed.
Half of students in the survey admit to running out of money before their next student loan installment comes through. Another similar survey from 2012 found that 1/6 students had spent an entire term’s loan within a month.
Our take: Budgeting is never easy, especially with all the events and products that are marketed towards students. Work out your income, write out a plan and stick to it. You’ll be much happier in the long run. And don’t forget that Save the Student is always here to help with 100s of guides on how to save money.
Budget airline launches £150 flights to New York
From July 2nd budget carrier Norwegian is to fly from Gatwick to New York for as little as £150, waging a price war on British Airlines and Virgin.
Norwegian plans to extend their flights to other American cities, including Los Angeles and Fort Lauderdale in Florida as well as planning to expand across Europe; Budapest, Cyprus, Sicily, Santorini and Corfu.
Our take: Christmas in New York anyone? We mentioned this deal in yesterday’s deal newsletter but it has to be taken with a pinch of salt. There are only around 10 flights for £150 (in 2015) and these don’t include food or check-in baggage.
Cuts to Super ISA rates mean savers lose out
Official figures show that banks have cut saving rates by a tenth since the Budget. Savers are therefore unlikely to benefit from putting money into the new Super ISAs that now allow up to £15,000 a year to be saved tax free (almost treble the previous limit).
The data, which was buried in a report published on the Bank of England’s website, shows that the average rate on cash ISAs was cut from 2.07% in March to 1.84% in May.
An analysis by The Telegraph found that the deduction will reduce saver’s annual incomes by millions of pounds.
Our take: What a bunch of bankers. The thing that we’re most angry about is that this information was squirrelled away in a Bank of England Report where most wouldn’t notice it. Sneaky work!
Amazon offer 6mths free Prime for students
Amazon is offering six-months worth of free Amazon Prime membership for those in higher education. This includes the free next day delivery, student-targeted discounts, promotions on books and other similar products.
If the Amazon Prime trial is not cancelled within 6 months the membership will automatically role onto the paid £39-a-year service – you have been warned.
Our take: Amazon is the great provider for students so free Amazon prime membership is a super deal (get it here). Just make sure you cancel it before they start charging, unless you find you really can’t live without it.
Students have unrealistic job expectations
The Student Employability Index found that 79% of students expect to be in a graduate-level job within six months of graduating. Government figures (more on that below) show that just over half of students are in these sort of positions 5 years after graduation.
Thankfully students’ salary expectations are more realistic. Most expect to be earning between £15,000 and £24,999 within 6 months. This is in line with real graduate earnings.
Our take: We’ve said it 100 times before, and we’ll probably say it 100 times again: experience is king. Everyone has to work their way up the ranks but with a decent degree and the right industry experience you should find yourself moving quite a bit faster. It’s all about the long term.
18k graduates unemployed 6 months after graduating
Overall 1 in 12 UK and EU full-time university leavers were unemployed six months after graduation and around one third were in “non-professional” jobs – jobs that did not necessarily require a degree.
Unemployment figures published by the Higher Education Statistics Agency found that men are more likely to be out of work than women, and humanity graduates are more likely to be out of work than science graduates.
Our take: It’s very easy to feel the doom and gloom of the situation but these figures are lower than last year’s. It’s a situation that’s improving every year and some of those people that are ‘unemployed’ are actually in Thailand sipping on cold beers and chowing down on street food. It’s not always bad & we’re here to help.
La Senza back into administration
For the second time in recent years La Senza has gone into administration.
Luckily for the people employed by the company there is no plans to shut down any of the stores and the administrators are on the lookout for potential investor.
Our take: The UK high street is really taking a hit. It’s great news that the staff will still be earning a wage and we hope it stays this way for the foreseeable future.
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