£100,000 of student loan debt. Young crippled by debt burden

yertiz_2

IveSeenTheLight wrote: »

You can never pre-empt what the requirements will be in 15 - 20 years time, however you can make preperations now in an effort to be in a good position once the time comes, which is what we are doing.

I wonder if we are slowly moving towards an Americanised system, where parents put away money into a "college fund" for the further education system.

While I respect your preparations, nothing could have prepared us for the increase in tuition fees for our daughter, due to start university in 2013, at £9000.00 pa. Her brother has just finished his degree this year and his fees were around £3300.00 pa. So anyone saving for their children's eduation .... beware..!

CLAPTON

yertiz wrote: »

While I respect your preparations, nothing could have prepared us for the increase in tuition fees for our daughter, due to start university in 2013, at £9000.00 pa. Her brother has just finished his degree this year and his fees were around £3300.00 pa. So anyone saving for their children's eduation .... beware..!

as has repeatedly been said why save for one's childrens fees? they simply repay the fees at 9% over 21,000 income

lvader

If you want to give your kids lots of money it would be much better spent towards a house deposit. The way student loans are structured you would be mad to pay them upfront.

grizzly1911

lvader wrote: »

If you want to give your kids lots of money it would be much better spent towards a house deposit. The way student loans are structured you would be mad to pay them upfront.

Unless you can afford to just completely pay them perhaps.

I am with you on the deposit provision argument.

I do wonder though, when they start to workout just how many aren't repaying in full, whether charging orders on property owned, may become an option for the government of the day.

IveSeenTheLight

yertiz wrote: »

While I respect your preparations, nothing could have prepared us for the increase in tuition fees for our daughter, due to start university in 2013, at £9000.00 pa. Her brother has just finished his degree this year and his fees were around £3300.00 pa. So anyone saving for their children's eduation .... beware..!

I presume that the £9,000 ps fee is for one of the more worthwhile degrees that can be attained.

I'm not factoring on a £9k tuition fee, I'm factoring far more i.e. accomodation, food, utility bills etc.

That said, had I been in a situation where the fees dramatically increased, I'd simply have to adjust my budgets to meet the needs.

One option is an account that we have been saving into for them since their birth could be used.

I'm also planning that all pocket money / earnings etc will have 20% (which will go into the account they are not aware of for their future) and 20% will go into their own savings.

They'll only get to spend 60% of whatever they receive.
I'm hoping this installs a good basic understanding of taxes, saving and budgeting from a very early age

Idiophreak

IveSeenTheLight wrote: »

I'm also planning that all pocket money / earnings etc will have 20% (which will go into the account they are not aware of for their future) and 20% will go into their own savings.

They'll only get to spend 60% of whatever they receive.
I'm hoping this installs a good basic understanding of taxes, saving and budgeting from a very early age

So you're going to say to them "Here's your £5 pocket money...now give me £2 back. I'm going to put £1 in your savings."

Surely they'll ask what you're going to do with the other pound?

Or ask why you bother to give it to them in the first place (not even the tax man is that cruel)

IveSeenTheLight

Idiophreak wrote: »

So you're going to say to them "Here's your £5 pocket money...now give me £2 back. I'm going to put £1 in your savings."

Surely they'll ask what you're going to do with the other pound?

Or ask why you bother to give it to them in the first place (not even the tax man is that cruel)

Sort of: -
I will give them £5
Tell them they have to pay back £1 in taxes
Ask them to put £1 in savings

They are 3 and 1. They haven't asked those questions yet and if they do, I'll answer it's for the government to pay for the lighting, libraries (which they use), leisure centres, (which they use), school nurseries (guess what, one uses) etc etc etc

I think it's a damn good way to educate them what taxes go towards and I look forward to their enquisitive minds being aware and askingthose sort of questions.

At the end of the day, they are still greatfull for their pocket money despite that they are paying "taxes" and "saving"

Incidently, look at your payslip. You do get the money and then it is taken back to pay to the tax man.
My method also helps to let them know that you may have to pay more to the government other than through PAYE.

Idiophreak

IveSeenTheLight wrote: »

Incidently, look at your payslip. You do get the money and then it is taken back to pay to the tax man.

No, payroll pay it to the tax man directly. It never enters my possession....but like your children, it doesn't really bother me....it's take-home I'm concerned about...just as your children will be.

At the end of the day, you'll be able to teach them about taxes all you want...but "good news: you're paying taxes!" will come as little consolation to them when they realise their friends are getting 65% more pocket money than them....

johnny_storm

Idiophreak wrote: »

Personally, I'd prefer they were upfront about their spending issues and just increased PAYE a couple of percent, stopped with all this stealth and left our services as just that - services.

What about those who dont want any of these "services", why should they pay extra tax to pay for the services you want? This sort of thinking is why I work via a ltd company and not via PAYE, no NI for me.

But lets face it, too many people doing worthless degrees. I work with someone with a law degree, he drives a fork lift truck on a bit over minimum wage. What a complete waste of time those years of study were.

grizzly1911

IveSeenTheLight wrote: »

Sort of: -
I will give them £5
Tell them they have to pay back £1 in taxes
Ask them to put £1 in savings

They are 3 and 1. They haven't asked those questions yet and if they do, I'll answer it's for the government to pay for the lighting, libraries (which they use), leisure centres, (which they use), school nurseries (guess what, one uses) etc etc etc

I think it's a damn good way to educate them what taxes go towards and I look forward to their enquisitive minds being aware and askingthose sort of questions.

At the end of the day, they are still greatfull for their pocket money despite that they are paying "taxes" and "saving"

Incidently, look at your payslip. You do get the money and then it is taken back to pay to the tax man.
My method also helps to let them know that you may have to pay more to the government other than through PAYE.

Come back in 10 years and let us know if this plan still holds true.:rotfl::rotfl::rotfl: