Financial crisis of the 18-40s (as in people aged 18 to 40)

nearlyrich

meanmachine wrote:

Yeah, and...?

If you were a saver, you'd be laughing. If you had a large debt you'd see it float away off the back of high wage inflation.

I'm gobsmacked that people think high interest rates are automatically bad thing.

Try taking on a massive mortgage with no wage inflation to help you out.

Seems to me that it's not just the 18-40s who need to be educated.

Interest rates are low because wage inflation is low - 2.8% according to recent figures.

Who benefits from low interest rates? Lenders - banks in other words.

Sheesh. I give up.

Not sure why you have to be so agressive in your posts, everyone is entitled to an opinion and just bcause you don't agree it doesn't mean everyone else is uneducated or stupid.

My point is that when the interests rates went up to 15% both me and my ex were in low paid jobs which had no automatic payrise each year so it was a struggle to keep paying more and more, we also lost the MIRAS around this time.


I don't automatically think that high interest rates are a bad thing I said that it's not just today's FTBs that are struggling. If I was totally selfish I would wish for higher interest rates to help my retirement fund grow, that's my fund that I decided I needed to contribute to, I never got the chance to have a final salary scheme either.

roswell

What you really need to look at is will a degree get you more money in the future or will it cost you more in the short term, I didnt go to Uni i wanted cash in my pocket and it ment that i had a car before my peers i had a more active social life, i had what i wanted once id saved for it. I washed dishes in hotels, temped in places id never think people worked and i graduated with my own degree from the university of life and its more usefull that any media studies degree

Tayus

im 21 and havent been to uni instead got a job when i left school. i now have 12k in the bank, but it wasnt easy! hard saving was involved! most of my friends have been to uni and spent there loans etc as though they were rock stars! i have no sympathy for these type of people when they cry poverty!

tomstickland

Its noticeable that the really tough courses like Maths Physics and Engineering are sliding down the league tables. Why? Because these subjects are too hard for today's pampered little darlings. Britain needs to rethink this costly madness, its doing neither the kids or our country any favours whatsoever.

I did a 4 year mechanical engineering course at university. We worked hard and it's paid off now. A friend of mine was made redundant from MG Rover and within 3 weeks had a job at Rolls Royce Aero engines. I work in a job that I regard as secure and reckon I could get another job within a shortish period of time if I had to.

I was paid minimal grant when I was at university, then I took out two student loans. I didn't run a car or anything like a computer or mobile phone etc. I joined the army cadets (which paid £23 per day, even for adventurous training holidays etc) and worked all of the holidays.

My experiences of university did suggest that some people expect their parents to pay for a financially easy life. It goes on into adulthood too.

lilac_lady

Going back to the original theme - it's a pity that student loans made debt so acceptable to young people. Like many of the MSE folk here they'll need a lightbulb moment about their level of debt before they can deal with it. I feel sorry for them and hope that finance will be introduced in schools as a mandatory subject. If someone goes to university now it's no guarantee of a well paid career.

MiserlyMartin

I wish people wouldn't keep going on about 15% interest rates like it was such a bad thing. It was only 15% for a few days anyway then it dropped quickly back down after our attempt at joining the Europeans ERM. At least savers got a decent return and higher inflation eroded the mortgages. Now we have sky high house prices due to such low interest rates but with affordability being much worse now than in 1989. Uni fees were not so high. Todays Uni kids have it worse cost wise but I don't understand the need for 99% of school leavers to go. I didn't go and I've got a reasonable career without it and did not have to spend years studying and not earning while racking up debt. You used to be gifted to be able to go to Uni. Now its just run of the mill.

cloud_dog

Ok, I'll throw in my tupence worth........ I have the expectation of Uni debt in the near future for my daughter.

I feel the concept of fee’s are useful and forces the student to focus on what they want to achieve and what is at cost if they do not immerse themselves in achieving their goal. (I wont mention the perennial academics who continuously took course after course when I left school, as there were no fees; taking up valuable places for people who did want to better themselves and then put it to good use in the real world)

Secondly, I work for a FTSE250 company and know that a Graduates starting salary (for a similar job) is at least £6k more than if the company were to employ a similar aged non-graduate person. I would expect this to be replicated across many (if not all) industry sectors, therefore, “yes” it has cost a lot of money to achieve but they are rewarded accordingly and can therefore afford to repay their debt. Whether they want to or not is a different matter.

cloud_dog

YorkshireBoy

MiserlyMartin wrote:

I wish people wouldn't keep going on about 15% interest rates like it was such a bad thing. It was only 15% for a few days anyway then it dropped quickly back down after our attempt at joining the Europeans ERM.

It may have only lasted a few days then (I can't remember) but back in 1982 my first mortgage was taken out at 16%. I do concede though, that inflation and wage rises were higher as well - and we also had (full) MIRAS back then.

...but I don't understand the need for 99% of school leavers to go.

Me neither. With 50% of 18 year olds going to university, the smart kids today will get a job with an employer who sponsors them through block/day release on their chosen degree course. With a salary throughout, no debt at the end, and the same qualification, this has to be the best approach.

MiserlyMartin

Yes people forget MIRAS. What was the first thing Gordon Brown did? Get rid of MIRAS and perform a £5 Billion a YEAR tax raid on our pensions. Thanks Gordy! I digress. I think it depends which career you plan to do. My industry pays about the same regardless of if you have a degree. In my workplace its experience and common sense that counts.

roswell

And back to the original post the reason 70% of the population have no savings is because debt is more acceptable socialy than saving ... you know that old fashioned thing your gran used to do when she needed a new hoover