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Informative Articles

Why Consumers Are Selling Their Annuities
Annuities are a major personal finance tool for consumers looking to lower their tax profile and plan for retirement. But, millions of people are selling annuities for liquidity options, in order to make other financial decisions. A recent...

Personal Finance Worries?
Are you nervous about your personal finances? The irrational exuberance of the 90s that led to double-digit gains for almost any investment portfolio is over. Now, you might consider yourself fortunate if your investments are losing less than the...

How To Invest And Breathe Simultaneously
Well, you say you're ready to being investing, on your own. No stockbrokers, no financial advisers, just you and the open market. What a thrilling prospect. Wait, are you seriously considering this proposition? Please allow me to give some advice:...

Credit counseling and its effects
All to often credit is fun, easy to get and even easier to use. Many people find that even though they have an excellent income, that they can not keep up with their current debt load and even if they are managing to make their monthly payments they...

Cracking the Corporate Code: A Book Review
"Today, companies want you to do well. They will give you the chance. You just have to step up and prove yourself." Westina Matthews Shatteen, First Vice President, Merrill Lynch & Co., Inc., From the book Cracking the Corporate Code A...

 
War of the Worlds: Student Finance versus Life

It’s a worrying time for current and prospective students. Figures from the Prudential, show that a third of UK university students have considered abandoning their studies due to the financial strain they have encountered. It is not surprising that many prospective students are finding the need to seriously think through the merits of going to university. With the increase in course fees, alongside decreases in government financial support, the current crop of graduates can expect huge debts (currently averaging over £13,000) when they enter the employment market, which they hope will reward them with a highly paid job.

However, as more students get pushed on to the higher education production line and undertake degrees, the once elitist qualification becomes devalued. Suddenly employers find themselves surrounded by graduates of ambiguous quality. Prestigious highly-paid careers are rare these days and graduates find themselves increasingly under pressure to jump through a number of hoops, with many interviews relying on an individual’s ability to sell himself, rather than the basis of the academic work.

Students need to take responsibility for their own finances, while the government seeks our recognition of its actions (educating the unemployed is good for the books … and votes), without the state taking on responsibility (“it’s an investment in your own future”).

Too many want to bury their heads in the sand and wait for a lottery win to make it all better. With over one trillion pounds of personal debt in the UK, students need to realise that the, "it could be you!" they pray for, is actually an "it is you … in debt" … with trapped wind more likely than wind-fall.

Part of the problem is hopeful expectation (alias denial), part is a fear of controlling your own personal finances (alias apathy), and part is a lack of knowledge (alias ignorance). The first one is difficult, and needs to be overcome by the individual. The other two however can both be overcome by looking for help. Sources of information need to be made available, actively promoted and sought out by consumers.

It’s not like the information isn’t there… there are plenty of financial product comparison sites loaded with information (and pictures): http://www.moneynet.co.uk/ for a start, or http://www.moneysavingexpert.com. The Financial Services Authority has its own finance help information for consumers http://www.fsa.gov.uk/consumer/index.html.

As the saying goes, "Seek and you shall find". It may be a hard lesson, but it is one that we must all currently embrace.

About the Author

Richard works in Edinburgh for a media company, occasionally writing for the personal finance blog Cashzilla ( http://cashzilla.blogspot.com/ ), and drinking too much coffee.