As a part of my cleaning yesterday I ended up throwing out lots of bank statements and the like.

Before I did this though I recorded the closing balance of my accounts at the end of each month for the past five years.

It is interesting to look at how your cash flow is affected as you going through various stages of being a student.

This first graph is of cash available (i.e. max overdraft and max visa card) compared to that of cash used.

During First Year (05) I was living at home and it really wasn’t until the end of the year that my cash flow started to slip.

During Second Year you can see a huge collapse at the start of the year when I moved out of home. The next two years show the attempted recovery from this.

During Third Year you can see the ups and downs of the bank balance as various stages were gone through. The first peak is just before the start of semester and then the drop shows what happens when you have to buy all your text books. The second spike is when my tax return came in, before collapsing again at the start of Semester two, finally you will see a large drop at the end of the year when my car needed urgent repairs costing almost a grand.

During the four period (first year of no uni), you will see the battle to keep the bank balance stable, with a spike mid year when the tax return comes in, but then a decline as bills are paid. This also shows that student president doesn’t pay that well.

This second graph shows the maximum amount of credit I could borrow at any one time and my actual borrowings.

Again it is interesting to note the stages as events happen.

The first decline is in first year when I brought my first car, a digital camera and mp3 player.

In second year the decline continues mainly due to worsening cash flow from moving out of home.

The major drop at the start of third year is when I brought my new car, however from this point forward you can see the improvements as I decide I have had enough of being in deep debt, and you can see this following through into 2008.

Of note on this graph as well is the way that the credit limit keeps expanding. Banks and other agencies are always trying to get you to borrow more so that they can make money off fees and interest rates.

And this leads into the third graph.

This shows borrowings as a percentage of the maximum I could borrow at the time.

It follows a very rough bell curve shape with everything turning to custard in second year and improving since then.

So in all this doesn’t say that much. Other than being a student does cost, it costs a lot, I have deliberately left the actual dollar amounts off these graphs, and haven’t included my student loan balance either. Also when things come out of the blue like car repairs they can have major impacts on your bank balance if you are not prepared for them.

Filmed last night… Great fun… Check out: http://www.a-mess.org

The Average New Zealand student:

Owes $28,000+ in Debt.
Lives away from home.
Receives little financial support from family.
Works part time. (around 15 hours a week) often for minimum wage.
Doesn’t qualify for a student allowance.

The rich student:

Owes nothing in debt. Either their parents have paid their entire way through or they have a scholarship (often because their parents have paid for extra school lessons).
Either lives at home or away from home. Pays nothing in rent because parents cover it all.
Receives full financial support from family.
Doesn’t work part time. They can therefore spend more time on studies and do better.
Qualifiers for a student allowance because their families have creative accountants who tie all the money up in trusts, investments, and company expenses.

My situation:

32,000 in debt.
Lives away from home.
Receives no financial support from family.
Worked 20 hours a week while studying.
Did not qualify for a student allowance.

I am fired up. As blogged below do not critise those who are below you. We have just as much a voice as you do.

If you want to know more about student support and how little students get check this page out: http://www.students.org.nz/index.php?page=livingallowances

Here are some highlights:

Students are the only group in our society who are not entitled to public income assistance when out of paid work. While the cost of living increases more and more, full-time students are being forced to scramble together income from a range of sources to meet ever increasing weekly living expenses – whether through working long hours on top of full-time study or borrowing to live from the loan scheme.

New Zealand’s low level of living allowance eligibility and relatively high cost of living forces a large number of students to borrow to live from the Student Loan Scheme and/or scramble together income from a range of sources.

In a 2005 report by the North American-based Education Policy Institute, research compared countries on six different measures of tertiary education and student living cost affordability. Out of a total of 16 countries, New Zealand only scored 15th, while understandably Sweden and Norway, two countries that have a fully funded tertiary system, scored first and second.

NZUSA believes that students must be relieved from the burden of being forced to borrow to live and plunged into high debt. Students must be provided with a living allowance as of right while enrolled in full-time tertiary study, and out of full-time paid work. Full-time study is just that – full-time! We strongly deplore the current and previous government’s view that debt constitutes a form of income for students.

30% of all borrowing under the Student Loan Scheme includes borrowing for student living costs, and 50% of all loan scheme borrowers in 2004 borrowed for living costs.

The maximum a student can borrow per week is $150.00. Despite being the longest un-inflation adjusted figure on the government’s books, this is not a sufficient amount to live on, in light of increasing costs, and particularly if students have no where else to turn for income.

The logic from parties who support age related means testing tends also supports the view that if a student is ineligible for an allowance then their parents will support them.

However, only 28 percent of all respondents to the TNS Income and Expenditure Survey (2004) reported receiving some parental support while studying, and this was not necessarily on a weekly basis. The median amount gained from this source for the year was $1,999. The 1998 Income and Expenditure Survey revealed that 31 percent had received some form of monetary gift from their parents.

And there is plenty more in the linked article read up before you blindly critise.

One of the things I really cannot stand is people who decide to reject reality and established facts.

Early tonight one of these Rich Pricks Students decided that they would talk to the other people in their masters degree course to try and establish if it was normal for students in NZ to be supported by their parents.

They concluded that it was normal for students in NZ:
to be fully supported by their parents,
to live at home, and
contribute nothing back to the household.

Now I cannot even begin to express how outrageous this statement is.

But lets look at where this conclusion came from.

First it came from a taught masters class. This means a few things. First it is a bloody expensive class. Secondly it means that you have to be pretty good academically to get into it. It is well known that to get as far as masters you typically come from a very well off background or get lucky with a scholarship. So it is little wonder this conclusion was made.

So what is the true reality of students? Well here are some true facts.

(Data and edited comments from NZUSA 2007 Student Income and Expenditure Survey)

The socio-economic level of parents/guardians was calculated from their stated occupation
using the Elley-Irving index. These figures are based on at least one parent or guardian
currently in paid employment.

Significantly more students were from a high socio-economic background in 2007 than in 2004
(59% in 2007, 47% in 2004). Over one third of students (35%) were from a middle socio
economic background. Significantly fewer students were from a low socio-economic
background in 2007 (6%) than in 2004 (15%).

Students from a high socio-economic background were significantly more likely to be
studying full time, with parents earning over $80,001, international students, aged 20-
22 years.

Students from a middle socio-economic background were significantly more likely to be
studying part time, with parental income between $20,001 and $40,000.

Students from a low socio-economic background were significantly more likely to have
parents earning under $60,000, Maori, over 30 years.

Thirty eight percent of tertiary students are financially independent. Almost one third of
students (32%) are partially supported by another adult (4% by their partner, 28% by their
family). One fifth (20%) are totally supported by another adult (5% by their partner, 15% by
their family).

International students were significantly more likely to be fully supported by their family (55%
of international students, compared to 11% of domestic students). Domestic students were
significantly more likely to be partially supported by their family (29% of domestic students,
compared with 15% of international students) or to be financially

During 2007, half (50%) of students rented a home or flat. Just over a quarter of students
(26%) lived with their parents.

Now it is important to note that this survey was of tertiary students only. What about those other people in society who cannot afford to attend tertiary education. Are they supported by their parents? I highly doubt it.

So lets look at the statements again.

The vast majority of students are not fully supported by their families.

The vast majority of students do not live at home.

The vast majority of students are expected to contribute back to their families.

Word of advice: Don’t mess with someone who loves statistics, debating, and looking out for the downtrodden.

Rick Pricks need to open their eyes and see beyond their gold plated fences. How about spending a year without your comforts. How about spending a whole year financially independant and earning the minimum wage? Don’t critise what you have not experienced.

Update: Here are some more facts… This is a press release from 30 July 2008 on Student Allowances showing very clearly that students are not supported.

Government report justifies calls for universal student allowances

Students are welcoming the release of a government report highlighting the positive educational
outcomes associated with student allowances.

“The findings of this report come as no surprise. NZUSA has long advocated that adequate support
in the form of student allowances is integral to academic success, and this government report now
confirms this,” said Paul Falloon, Co-President of the New Zealand Union of Students’ Associations
(NZUSA).

The Ministry of Education report, Educational achievements of student support recipients, found that
those who receive student allowances do better academically and are twice as likely to achieve
successful completion of their studies.

“This evidence provides an excellent academic justification for the introduction of a universal student
allowance”, said Falloon.

Currently only around one third of students receive an allowance, with two thirds excluded due to
parental-income means-testing till the age of 25. As a result many must borrow simply to cover basic
living costs, resulting in the vast amount of student debt that individual students bear, and the
immense collective student debt of $10 billion now held in the community.

“In 2007 NZUSA conducted the national Student Income & Expenditure Survey and found that 90%
of fulltime students undertake paid work during the academic year, and 59% cite a stressful financial
situation as a major concern,” said Falloon. “The impact of this, and the often significant time away
from study at paid work, has concerned academics and student representatives alike for years,”
concluded Falloon.

With both political and public support for a universal student allowance, and now government
research identifying allowances as a significant factor in positive educational outcomes, the time is
now right for its implementation into policy.

ENDS

If students were supported by their parents then why are those who recieve an allowances twice as likely to complete their studies?

This weekend the U.S. Seceraty of State is visiting NZ. It is truely an honour for this country to be hosting such an important dipomat.

Unfortunately AUSA (the students’ association at Auckland University) have issued a media released advising that it is offering a $5000 reward to any student who citizen’s arrest Mrs Rice.

The key reasoning for this is the war in Iraq. In particular the fact that the USA invaded another country aka interferreed in another countrys politics.

What I find quite ironic here is that by trying to citizen’s arrest Rise the students themselves are interferring in the politics of another country. How bizzaire.

This is the video of the transcript that I posted a few weeks back

Go the Greens and New Zealand First! Good on you for standing up for students!

Tomorrow is going to be huge. Student Debt hitting 10 Billion is already in TV3 News as the third story, New Zealand Herald, Stuff, Scoop. And probably lots more.

http://tinyurl.com/3mw9zc

9. Debt, Student-Increases

[Uncorrected transcript-subject to correction and further editing.]

9. METIRIA TUREI (Green) to the Minister for Tertiary Education: Has he received any reports that student debt will reach the milestone of $10 billion this week; if so, what, if anything, does he plan to do about it?

Hon PETE HODGSON (Minister for Tertiary Education) : Yes, I have. Next month’s Budget will contain some measures to further increase student support, just like each of our first eight Budgets have already done. I acknowledge in passing the Green Party’s consistent support for progress in this area, and I also acknowledge that the National Party has consistently voted against such progress.

Metiria Turei: Does the Minister stand by this statement, which he made in January of this year: “Each year under Labour-led governments student support has strengthened,”; if so, how does he reconcile that comment with the fact that the latest figures show that fewer students received a student allowance in 2006 than when Labour came to power in 1999?

Hon PETE HODGSON: The proportion of eligible students who are receiving the allowance now is well over half-it is about 57 percent-about three-quarters of whom are receiving the full allowance and one-quarter of whom are on the cusp, if the member might see what I mean. That is a great many more students than when we first came into office. I cannot express the difference in a percentage, however, because I do not have the figures with me.

Hon Mark Burton: In the light of the Minister’s response to the primary question, does he expect that total student debt will go on to reach $11 billion or even $12 billion; if so, why is the total debt still rising?

Hon PETE HODGSON: It is a very good question. The total debt continues to rise because, apart from inflation, there are more students, and more students are studying to a higher level. That is a good thing. It is a good thing. The question is what is happening in the life of an individual student, and what is happening there is that conditions continue to improve. They would say “too slowly”, but conditions do improve. The average debt is now rising more slowly than the average wage, with the average wage being the way that one pays the debt off. For that reason the average repayment of the debt has reduced from where it was in 2001, at 9½ years, to where it is now, at less than 6 years. So there is an improvement for students. The Greens have assisted with that improvement. We need to make more improvement.

Dail Jones: Does the Minister accept that the problem associated with student debt, with or without interest, can be substantially reduced by the introduction of New Zealand First’s policy, which for many elections has stated that New Zealand First will introduce a universal student allowance that does not require repayment?

Hon PETE HODGSON: Having a universal student allowance is the policy of a number of parties in this House. For my part, we are happy in our party to move towards, but not to, a universal student allowance, and this is why: I have other priorities. I need to pay attention to the quality of tertiary education. I need to ensure that the completion rates continue to rise. I need to ensure that the access-especially for Māori and Pacific Islanders, which is well below par-must be increased. These things all cost money and I happen to place them above the move to a universal student allowance. On the other hand, we make progress towards that universality in most years, and I hope we may do so again next month.

Metiria Turei: Does the Minister disagree, however, that his inadequate student support policy, which includes interest-free student loans, has actually led to a 9 percent decline in the enrolment of students from poor backgrounds; and will he then make a real commitment to fulfilling the policy of the Green Party, the New Zealand University Students Association, and, obviously, New Zealand First, for having a universal student allowance, which would ensure that today’s students are able to have the same opportunity to learn, to buy homes, to choose when to have families, and to take control of their financial destiny, as he and most of the Labour Party leadership have also been able to do?

Hon PETE HODGSON: The short answer is no. I have no advice to the effect of a 9 percent reduction in whatever the member suggested might be occurring for New Zealanders who are from more modest backgrounds. On the contrary, there is documented evidence of higher access for Māori and Pacific Islanders, but not high enough, and of higher completion rates at level 7 and above, but not high enough. We have had some dramatic, outstanding improvements in education amongst Māori and Pacific Islanders in the tertiary sector in this country-especially in the years 2002 to 2006, which is the latest data available-but I would be the first to say, along with all of my colleagues, that progress is not yet sufficient.

Dail Jones: Is the Minister aware that student debt can begin to be decreased by increasing the current parental income maximum for a student allowance from $71,000 before tax, if one lives in a parental home to study, and just over $77,000 before tax, if one lives away from a parental home-the current rate-to, say, $100,000 before tax, if one lives in a parental home to study, and $105,000 before tax, if one lives away from a parental home, which would cost an estimated, and I emphasise “estimated”, additional expenditure of about $300 million to the Government, and surely this would be a good investment in education and in the future of New Zealand and it would encourage qualified people to stay in New Zealand?

Hon PETE HODGSON: Yes, I am aware of that, which is why, although the member was not able to be with us, this Government shifted parental thresholds three times in each of the last three Budgets-by 20 percent, 10 percent, and 10 percent-and we do not rule out the possibility in the future of a further shift in the thresholds.

Metiria Turei: Is the Minister aware that the Minister of Finance recently told the TaxAgents’ Institute: “We have real ambition for New Zealand and our economy. And we know that by refusing to burden our children and grandchildren with a legacy of debt, we are removing one of the biggest obstacles to realising that ambition.”; if so, does it worry him that the Minister of Finance is so ignorant of the $10 billion legacy of student debt left by this and previous Governments, which has a proven, disproportionate exclusionary impact on women, Māori, and the least well-off New Zealanders?

Hon PETE HODGSON: Just a couple of comments in response: first, the level of participation of, say, New Zealand Māori in our universities is still below that of, say, New Zealand Europeans, but it is getting better, not worse. The member shakes her head-she needs to go back and look at the statistics. Second, I did not have the pleasure of being in the room when the Minister of Finance made his quoted remarks, which is a shame, of course, but I would not mind betting he was talking about KiwiSaver, and that is a magnificent policy that will change the face of this country.

Metiria Turei: I seek leave to table a chart showing that the numbers of students receiving an allowance in 2006 are 5,000 fewer than in 1999.

* Leave granted.

Metiria Turei: I seek leave to table an article describing how the under-35s are now effectively shut out permanently from financial security.

Madam SPEAKER: Leave is sought to table that document. Is there any objection? There is objection.

Metiria Turei: I seek leave to table “Freedom from debt, freedom to prosper”-the Minister’s speech to the TaxAgents’ Institute of New Zealand given in March this year.

* Leave granted.

Dail Jones: I seek leave to table a document to introduce a universal student allowance, being New Zealand First’s election policy.

* Leave granted.

One of my friends has a different video of this stunt. But I never knew that this would hit you tube.

From what I know both guys were brusied, sore, and cut afterwards but no major injuries.