Was Your Parents’ Financial Advice Simply….Wrong?
Bob Dylan’s song The Times They Are A-Changing’ highlighting generational shifts was released 55 years ago and advises mothers and fathers to avoid criticism of what they cannot understand since the order they recognize is changing. Over a half a century later the words still resonate as parents look to advise their children on their financial future.
Foremost amongst their concerns are education and getting on the famed property ladder, from which many of them will have benefited.
As tuition fees have spiraled in the UK since they were introduced nationwide in 1998, the choice of further education options has been the subject of debate, setting degrees versus apprenticeships at the forefront of the discussion. Over a third of a million students were accepted at universities, according to the available figures from 2018.
In 2017 the Institute for Financial Studies said that students in England would graduate with debts of over £50,000, with students from poorer households incurring more, impacting their ability to purchase the property.
At the same time as the undergraduate numbers have grown, apprenticeships, including degree apprenticeships, have increasingly been seen as an option offering the opportunity to earn whilst you study. Once earning, it is vital to seek independent financial advice on how to maximize your savings, and it is never too soon to seek help. As pensions and savings plans change constantly, parents may be out of touch with the best options.
The thousands of courses on offer at universities mean that if you are unsure what career you want to pursue, a broader course such as an Arts or Social Science degree can offer more options.
Indeed, you may be surprised to discover that apprenticeships are available in the law, accountancy and the media as an alternative to a degree. Options are due to expand, with the government committing to creating three million more apprenticeships by 2020.
Given the debt which can be incurred, getting financial advice and comparing potential earnings from different courses is a recommended course of action.
With the emergence of financial software for financial advisors found at sites such as www.intelliflo.com, help is at hand.
Times really have changed, and parents must be more pro-active when offering advice to their children if they are to avoid saddling them with debt which could affect their futures.