Money Advice

Blair bribes parents and children into higher education

Hidden Costs Of Credit Cards
Recent reports from CreditAction and the National Debtline appear to show that UK consumers are becoming more financially aware and are looking to reduce their levels of personal debt which have spiraled seemingly out of control over the past few years .....
Government financial assistance for pre-university education

It would seem that the media mania over the cost of an education is finally paying off, with the UK government taking increasingly strong measures to maintain the current level of school leavers moving into higher education. According to the Times Higher Education Supplement, 48% of teenagers believe it is too expensive to go university, hence the creation of two government schemes designed to distract students from fees, loans and debts, generated at university.

There are two schemes offered by the government which could lighten the load of financing an education:

1) The Child Trust Fund (CTF)

Child Trust Funds are long-term tax-free savings and investment accounts into which the Government will pay ‘endowments’ when a child is born. A further payment of an undisclosed amount will also be paid at the age of seven. This means that each child born on or after 1st September 2002 will receive an initial lump sum payment of (currently £250 or £500 for poorer families) from the government. This will be sent in the form of a voucher which can then be used to open a CTF account with the investment provider of the child’s guardian’s choice. Parents will be able to pay up to £1,200 a year into the fund, until the child reaches 18 when the account will cease to be a Child Trust Fund account, and will usually be transferred into an easy access account. Preferential tax treatment will then cease, and any further growth in the fund after this time will be subject to normal tax legislation. Savings in a Child Trust Fund account will develop into an asset which can then be used by the child, and no-one else, when they reach the age of age of 18 (not before) to help cover some of the large expenses encountered at this time of a person’s life, and is intended to contribute towards university fees, first mortgage, etc.
Basic Bank Accounts
The lists of bank and savings accounts that are available to most people are bewildering. A quick look at a comparison site like Moneynet ( http://www.moneynet.co.uk/ ) or Moneyfacts will reveal thousands of different products. Unfortunately many of .....

PARENTS IN HIGHER EDUCATION and credit cards are our most popular subjects today - have a look at the personal finance to see if it's also something that may be of interest to you.

We are constantly updating our article database, so please have a look through our site to find more articles related to parents in higher education. You may also be interested in reading some articles about debts.

Critical Illness Insurance
There are three main types of insurance cover you can buy to protect yourself and your family: life insurance, private medical insurance and critical illness insurance. If you want your financial health to .....

Important key facts about CTFs

* CTFs are tax free savings accounts, where neither the parent nor the child will pay tax on the income or gains (such as interest or dividends) in the account
* A free initial £250 voucher will be issued by the government to start each child’s account
Parents In Higher Education
Government financial assistance for pre-university education

It would seem that the media mania over the cost of an education is finally paying off, with the UK government taking increasingly strong .....
* Families receiving Child Tax Credit, where the household income is below the CTC limit, will receive an extra payment
* A maximum of £1200 each year can be saved in the account by parents, family or friends
* Money cannot be taken out of the CTF once it has been put in – once your child is 18 they will be able to decide how to use the money
* Children are allowed to make decisions about how the money is managed when they are 16
* The Government will make a further contribution to CTFs when the child reaches seven years old - the amount has not been decided yet
* There are many different types of CTF account – parents are required to choose the type of account you want for your child
* It will not affect any benefits or Tax Credits the parent receives
* learning about how to make the most of your money is a key part of the CTF

Student Finance Guide
Consumer research site, moneynet, has published its seventh online brochure in the series of personal finance product guides. The student finance guide, collated by two graduates at moneynet, was .....
Further information can be found at: http://www.childtrustfund.gov.uk/Homepage/fs/en and compare Child Trust Funds at http://www.moneynet.co.uk/ .

2) Upon reaching the age of 16, a student who has a savings/current account in their own name, may be eligible for an Education Maintenance Allowance (EMA)

An EMA is a weekly payment of £10, £20 or £30, depending on the household income. The money is intended to help with the day-to-day costs generated by staying on at school or college, such as travel, books and equipment etc. Additionally, £100 bonuses available for students who remain committed to their course and get good marks.

You can get an EMA if:
How Much Is That House
With the recent release from the UK's biggest mortgage lender, the Halifax, of its latest house price report for May 2005, showing that prices fell by 0.6% last month, and prices falling just 0.1% since the start of the year, the bank said that the .....
1) Your household has an income of £30,000 or less and
2) Your course involves at least 12 hours of guided learning per week

Courses eligible for EMAs include school sixth forms, sixth-form colleges or further education colleges and encompasses ‘A’ levels, GCSEs, GNVQs, NVQs or other vocational qualifications.


Consumer Advice
The banking industry has launched its own new website to provide advice for consumers on credit cards. The site http://www.choosingandusing.com/ has been set up to help people choose which card is right for them as .....


For more information about parents in higher education click on the sitemap link and view the rest of our articles.