Eight of the island's schools will earn $30,000 each for volunteer work with local charities.
Students will put in between 12 and 24 hours with organisations such as the Coalition for the Protection of Children, Bermuda Zoological Society, Bermuda Institute of Ocean Sciences and Keep Bermuda Beautiful.
The initiative, Dollars For Hours: Youth and Community in Partnership, is run by Bermuda insurance firm PartnerRe.
The programme will see the firm give out a staggering $240,000 to public and private schools and give hands-on support to local charities.
Patrick Thiele, PartnerRe CEO said: "This is the fourth time PartnerRe has paired local charities with the secondary schools, bringing our total Dollars for Hours donation to $800,000 since 2006. As a Bermudian company, of which 71 per cent of our staff are Bermudian, we have a sincere interest in Bermuda, its youth and the future of our island.
"Through our Dollars for Hours initiative, we aim to encourage students to provide grassroots support to our local charities, while contributing financially towards the improvement of their educational experience."
The students taking part are aged between 14 to 18 from CedarBridge Academy, Saltus Grammar School, Somersfield, the Berkeley Institute, Bermuda High School, Bermuda Institute, Warwick Academy and Mount Saint Agnes.
Each school will adopt a different charity project, which include environ-mental schemes and health-related initiatives.
PartnerRe will cover the cost of materials and will coordinate a showcase for students to share their experiences once all projects are completed.