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Thread: Saving for Education

  1. #1

    Default Saving for Education

    Hi,

    We have recently spoken to someone from Australian Scholarships Group (ASG) about savings plans for our kids. Has anyone had experience with them or other like groups? How do you find it? Is it useful? Any catches to look out for?

    Any feedback would be appreciated. Thanks


  2. #2

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    Sim - don't quote me but is this the group that if your child decides they aren't going to uni or whatever you lose your money ie the money you put in can only be used for further education. ETA - obviously from what Kate said below I have the wrong end of the stick about this

    We chose to just put a good whack of money away in a hard to touch bank account and let it grow there - yes we will pay tax on the interest but the usage restrictions aren't there. I also have an old annuity account my parents set up when I was little (like a life insurance) that they paid into quaterly and it reached maturity when I turned 18 or 21 - instead of taking it at 21 I have continued this as its just another method of savings. I can actually close it and get all the money and interest at any time ( of course it would pay out much higher amounts if something bad was to happen (and this element you don't need for kids anyway really)) but it is a savings plan that allows me to use the money for whatever I need in the future without having the ability to touch it on a day to day basis - my plan is to put it into the kids accounts. The AMPs and any other financial organisation (probably not the basic banks) of the world can advise you about things like that.

    ETA - I just got a thing in the junk mail where it seems Commonwealth Bank offer some kind of education savings plan which they say can be used for education expenses from preschool up (they are the outlet for another financial institution) and the fact that these type of plans have tax benefits but anyway just thought I'd let you know such that if you are going along these lines it might be a similar option that would allow you to compare and contrast and maybe pickup some of the catches etc.

    I don't know anything more about ASG and how they work other than my first remarks but just thought I'd write the other in case it presented an option you hadn't considered. I just know I wasn't keen on paying money into a scholarship mob if my child decided they wanted to do an apprenticeship or the like and I'd then lose all the money I'd supposedly put away for their future when I could save it another way.
    Last edited by jaspen; September 13th, 2006 at 06:06 AM.

  3. #3
    Toy Tester Guest

    Default

    I read in the paper a month ago, about a family back in 1981, decided to not put their son through Private schooling and rather put that money into BHP shares. Each year they put the price of private school fees into buying more shares. By the the time there son had finished public schooling, the shares were worth just under $1M. He is now funding himself through Uni as an accountant and diversed further into the share market.
    Probably not a good idea to put all your money into one company, but makes you wonder...

    Mick

  4. #4

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    I looked into the managed school funds and like Jaspen said decided against it because there are too many "what ifs". We have ours in a term deposit instead rolled over three monthly at which time we add to it.

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