Over 730,000 New Zealanders have a "Student Loan" - money they borrowed from the government under a special scheme to invest in gaining a Tertiary qualification. Today these loans are on average NZ$20,000ea. A repayments scheme for debtors is integrated in our tax system.
In this month's Juno investing magazine, Dr Pushpa Wood, Director of the Westpac Massey Fin-Ed Centre discusses the pros and cons of parent's helping to reduce the debt incurred by their kids before they enter the workforce. Here's a link to the article.
(photo also borrowed from this article)
The article suggests a resounding "Yes" if
- * You can afford to
- * Your child is financially responsible
As the parent of a 15YO looking towards Tertiary education, this is a very personal & relevant question for me. Times were different when I graduated, we all entered society relatively debt-free and had the opportunity to make our own future. I loathe the idea of my daughter entering society deeply embedded in a debt culture and intend to do everything I can to minimize debt upfront.
For you, is debt incurred to advance your education "Good Debt" or not?
If I was up to my eyeballs in Tertiary debt I seriously doubt I would have advanced along the Wealth Lighthouse journey, or invested in many other of the great private 'education' experiences I've been blessed to experience, Tony Robbins as one example.
How is education paid for in your country? Have you incurred then paid off debts for this or have they 'hung around'? I'd love to hear. Given the opportunity, what upsides do you see in helping your child successfully graduate Tertiary study debt-free... Or does the entrepreneur in you see something totally different for them to transition from High School to Lifelong Leading Learner status?
Leave a Reply