University Savings

I read a lot of American personal finance blogs and the common thing for parents to do over there seems to be to pay for their children to attend college. Over here in Australia, things are a little bit different.

Back in the late 70’s, the Higher Education Contribution Scheme (HECS) was introduced. This was basically put in place so that everyone who wanted to could go to university. Basically, the government would pay for your time at university (tuition only) and you wouldn’t have to pay it back until you earn over $41 000. Even then, you only pay 4% of your salary toward it. It’s taken out much the same as tax is.

As such, most parents in Australia don’t scrimp and save in order to be able to send their children to university. Most kids just go to uni and take on a HECS debt. Of course, there are parents out there who probably do save up all the money to pay up front, but for the majority, HECS is the way to go.

I think this seems to be a better method than what occurs (or what I can understand) in America. Yes, you graduate with debt but you don’t have to pay it off quickly and you don’t have to battle high interest rates. Most people don’t even think about their HECS debt as it just seems similar to paying income tax.

What does everyone else out there think of the Australian system? I’m a little bias but I think it’s great.

Oh and an aside, I will graduate without a HECS debt, for which I am very grateful!

Weekend Spending

I had quite the un-exciting weekend! On Friday night I went to a university function which was actually not very fun. Due to being utterly bored, I didn't end up spending any money which is always a plus. My friend and I left early and went back to her room for a good catch up session before I went to bed. On Saturday, as previously posted, I bought a new phone. Or rather, I signed up for a phone contract and got my phone with it for free. I LOVE this phone, it is still giving me no end of enjoyment!

I also filled by car up which cost me $40. Because I live on campus, I don't drive very much, mainly just on weekends. During the week I usually eat on campus, study and hang out with friends on campus. So I sometimes manage an entire month out of one tank of fuel, which costs around $40 to fill up. This weekend however, I'm visiting my grandparents in a city a few hours away so will have to fill up again, but it's so rare that this happens, I'm happy to do it.

I also did my grocery shopping. I usually buy a box of Pepsi Max (I'm slightly addicted) that I keep in my room, replacing a can in the communal fridge each time I have one. I was due to buy another this past weekend for $14.95 a box. They had two for $20 though and I could not resist, as I know it is something I will buy again in the future. As a result, my grocery bill was a little higher than usual at $41. I also had to buy some back to school supplies for $12.

On Sunday I just tottered around at home, cleaning and doing my washing and ironing. I had soccer in the afternoon before heading home for a small dinner as I didn't feel like going to the dining hall. So Sunday was a no-spend day!

And that is my weekend spending report!

I got a new phone!

Well I bit the bullet and bought a new phone today. Or rather, signed up for a plan that came with a free phone.

But here's the good news. I love this phone! I think when making major purchases, if you don't remember where/when you bought it and if the thought of it doesn't bring a smile to your face, then you've wasted your money. Let me tell you, this phone brings a smile to my face! I'm so excited about it and will definitely be able to remember where/when I bought it!

Should I?

My mobile (cell) phone has started to play up. It's fine for the most part but it's not charging properly. I'm not under a contract so can't get it fixed without paying a hefty bill. For some time now, I have been considering going on a plan with my phone. As I don't live in the near vicinity of any of my family, I use it a lot to call home or to text my siblings.

Now that this one has started to play up, I'm considering it even more. If I go on a plan, I can get a new, free phone with it. But am I being silly with my money? Should I just bear with this phone until it dies?

I usually recharge with $30 credit. This does not always last me a month though, so I need to recharge again before the end of the month rolls around. If I were to get a new phone, I would have to go on the $49 plan and the one below that ($19) isn't enough. So this does sound like an extra $19 a month, but sometimes I spend up to $60 a month with my pre-paid... so maybe it's not too much. On the up side, on a plan I could call my sister for free and, as she still lives at home, can also use this to speak with my parents.

I don't really know what to do. Any advice out there?

Reality Check

I know I haven't been posting as frequently since I returned from my trip, and I do apologise. To be honest, I don't actually think I have any regular readers, but still, my apologies.

My final semester of uni started on Monday. I can't believe I am mere months from graduating! I actually think I am going to miss it! I've spent the past sixteen years of my life studying- I won't know what to do with myself once that's gone. Here's hoping the semester goes by without a hitch!

I have received my job assignment for the next three years. It's on the outskirts of a major city and is in a nice area. The actual job I will be doing is very high tempo, very stressful and involves long hours. I'm quite excited as I'll learn a lot. However, since finding this out, I've done some re-evaluation in terms of buying a home.

I still plan to save, research and look for a home next year, getting to know the area . However, my goal between now and the end of 2010 is to pay off my car. Until I have that debt out of the way, I feel like I would be getting in a little bit over my head with another mortgage. I think this is the responsible decision and, due to my low cost of living, I should be able to do it by the end of next year.

In other news, I submitted my tax return today and will be getting a $1500 refund. That, plus an extra $200 of my next pay cheque, will be going straight to my brother which will make me completely debt free to him! I'm very excited about that!

As always, if anyone is out there, please comment!

You Spent How Much?

Over the last Christmas break, I travelled to Europe for around three weeks. It was all paid for by my own money, I didn’t put any of it on credit and I had the most amazing time. One of the reasons I was able to afford such an amazing trip was that I had no plans to spend big while I was there. I was going there for the experiences, not to buy things!

I did set some money aside to buy myself, my older brother and my parents some art, but apart from that, I only picked up one or two small things for myself and my other siblings. However, then I went to Venice.

For those who have never been to Venice, they’re famous for their glassware and it’s everywhere! I found the most beautiful champagne flutes I had ever seen. I just had to have them. I did take the entire day to deliberate, but in the end, decided to buy them!

They cost me almost $400. This might not sound like much to people out there, but for a twenty year old student in Europe for the first time, this was HUGE!

However, I do not regret my purchase. Now, every time I use them, I think of my trip and what a spectacular time I had there!

My Trip

So I have recently returned from a two week work trip. It involved lots of boring briefings and then one or two "tests" for certain qualifications needed to do my job. Very dull work but necessary.

For who only knows what reason, it was held in a very remote locality. It was about a $30 taxi ride to the nearest town and none of us took our cars (logistics issues). I thought this would be fantastic, I would save a lot of money as there was nothing to do and nowhere to go.

I didn't save that much though as I spent far more than usual on eating out, both for lunch and dinner. I know I shouldn't have but I was bored and needed to socialise with some friends! Plus the food provided wasn't overly appetizing.

So yes, I spent more than usual but it was a two week thing so I don't feel too badly about it. I get paid this Thursday and will hopefully get back on track!