Finances
soon as they are eligible but with the unemployment rate at the lowest it’s been in years there should be ample opportunity for diligent students to get a job at 14 years and 9 months. That’s what I did. I worked as a check out chap at a local supermarket before I turned 15 years old. It taught me so much about the ‘real’ world and enabled me to buy my first parcel of shares. There are many benefits to having a part time job. I was able to fund a 12 day voyage on the Young Endeavour tall sailing ship, spend a year in Sweden as a Rotary Youth Exchange Student and buy the toys that all teenage boys love. Years later while recruiting university graduates for a global consulting firm I quickly learned that graduates who worked through college are more attractive to employers. They have learnt responsibility in the work place and can balance work, family, sporting and social activities. A part time job will enable you to achieve these things and help you save for college education. If parents have the ability to fund a child’s college education, I’m all for it on two conditions - as long the parents don’t go into debt, and as long as the young person is taught financial responsibility. Failing to teach financial responsibility by completely supporting children through college may result in character flaws in the child. If a student is entirely supported by parents he is sheltered from the ramifications of his actions, and may not care how many subjects he fails, how many times he changes course or how much money is wasted on extended time at college. Why should he when Mum and Dad are paying? The best place to invest savings set aside for education depends on the time frame. I recommend a high
Learn money management skills now while you are young and it will change your destiny interest paying, low frills, and no fees, at call, internet or phone banking account with a bank or quality financial institution. If you have four to seven years to invest I would invest at least some of the savings into a Listed Investment Company such as Australian Foundation Investment Company, an Exchange Traded Fund or an index fund with international diversification. Scholarships Scholarships are a great way to fund tertiary education. The Commonwealth Learning Scholarships (CLS) program provides financial support to eligible undergraduates to assist with higher education costs. There are two scholarships – one for general education costs and one for accommodation costs. The scholarships are administered on behalf of the Australian Government by individual higher education providers. The providers are responsible for conducting their own application and selection procedures in line with Government guidelines. Contact your college to see if you are eligible for a scholarship. There are also a plethora of
16 | Find a Christian College Guide 2012
scholarships provided by various corporations, universities, church groups and foundations. Investigate the opportunities. Sometimes they are not available until the second or third year of the course. Your college student services office is a good place to start. Other income sources Centrelink is a potential source of funds for living expenses during college. Payments including the Youth Allowance (16-24 years olds) and AUSTUDY (25 years and over) have eligibility criteria including an income and asset test. Students can earn up to $6,000 p.a. without it affecting their allowance. There is no reason why you shouldn’t work during term or at least during the long summer break. Awards can be another source of funds for the diligent college student. I managed to receive two prizes at university. One was a book prize that was nice but didn’t help the hip pocket. The other was a cash prize, which certainly came in handy. Another opportunity I jumped at during university was an industry based learning year. This involved taking a year out from study to work within two corporations. Sometimes called sandwich years, they are a great opportunity to earn income and gain experience. The income generated enabled me to pay off my HECS debt (and receive a 15% discount for doing so) and fund a five month trip around the world before commencing full time employment. Funding options Commonwealth loans There are three types of loans available to fund your tertiary education provided by the Commonwealth under the Higher Education Loan Program (HELP): • HECS-HELP is a loan available to