Categories
Finance

Critically examine the different sources of finance available to businesses

MANAGING FINANCIAL RESOURCES AND DECISIONS
TERMPAPER1
Executive Summary

The information which was used to explicate the theoretical model was put together utilizing both primary and secondary information. Information was gathered from the cyberspace ; the literatures and transferred prior cognition that was garnered from an in-class treatment as a beginning of informations. The confer withing company enables companies to come in new market, addition grosss and better operational public presentations, analyzes the current concern operation and determines ways that the company can run smoother. Powell’s finance service which is the private company is a taking maker that provides concerns with fiscal aid and has been in being since May 2003. The finance section of a concern is one the most of import sections in the concern as it is in this country where all the money is managed. The fiscal resources in a concern are what will travel the concern from one phase to another.The fiscal facet of a occupation is really of import as no programs of the organisation can be carried out without the fiscal section being called for. The finish of any finance map is to accomplish three benefits: concern support service, lower costs and effectual command of the surrounding” . ( Griffin, n.d. ) .
Making determinations in a concern semen with tactical thought. As these determinations can either do or interrupt the company. “Decision devising is an indispensable leading accomplishment If you can larn how do timely, well- debated determinations, so you can take your squad to well-deserved success” . ( Mind Tools, n.d. ) . Other organisations describe determination devising as the cognitive procedure ensuing in the choice of a belief or a class of action among several alternate possibilities. So this merely goes to demo the relevancy of good determination devising because what every determination doing procedure produces a concluding pick that may non motivate action. So with the fiscal direction and the determination doing a company can seek to travel from strength to strength.

Rationale
The intent of this research is to demo the importance of the different beginnings of finance available to concerns. Finance is a really of import factor of any concern ; finance is needed in every concern in order to better. There are many beginnings through which a company can have its finance in order to increase its capital.
Background
Private Spouses
Powell’s fiscal service is a taking maker that provides concerns with fiscal aid and has been in being since May 2003, this concern has grown to be one among the taking fiscal companies in Jamaica with both internal every bit good as external stakeholders. It is located in the centre of Half Way Tree and looking frontward to the international market. One of its stakeholders is a Willis Consultant Company who helps in helping the policy ‘s company’s public presentation, possible and assesses its communicating, cognition, information, interaction and needs as this is a major failing of the company. This fiscal company is responsible for the direction of the organisation ‘s hard currency flow and guaranting at that place plenty financess available to run into the twenty-four hours to twenty-four hours payments, this country besides encompasses recognition and collects policies for the company’s clients, to guarantee the organisation is paid on clip and is a payment policy for the company’s provider. As a Small Business Enterprise it is hard to vie with our rivals so we had to engage a Business Consulting Firm to make solutions to our jobs, acquire the merchandise on the market and to hike the sale of it so it can be recognized worldwide.
VISION STATEMENT
Powel’s fiscal service is the Prime Minister centre that offers quality services to its clients.
.
MISION STATEMENT
Powel’s Financial with the accent on good client service and good trained employees Powel’s Financial will efficaciously put to death responsibilities
WILLIS CONSULTING COMPANY
The Willis adviser company is owned and o3perated by Ghenya Johnson and was established in the twelvemonth May 1985. Our good trained employees include: Secretary, Accountants, Selling Directors, Human Resource Managers, Managers, General Managers, Chief Executive Officers ( CEO ) , and the Consultants. We are located in three locations Mandeville, Santa Cruz and our caput office in Kingston. This confer withing house provides professional advice for a fee. This steadfast employs professionalism with the specialised expertness to assist authoritiess and organisations across all industries and concern maps create value for their clients and stakeholders in all countries and phases of concern, we specialize largely in helping clients with pull offing information, communicating, cognition, information, interaction and needs ; it lends valuable expertness and provides advice and counsel in many ways.
This company enables companies to come in new market, addition grosss and better operational public presentations, analyzes the current concern operation and determines ways that the company can run smoother. Our aim apart from doing a net income is to go on developing our clients concern in footings of communicating cognition and seting together information, making solutions to assorted bugs in the concern biosphere, our figure one end is to help our clients in any manner possible given them the competitory border that is needed to win in their assorted endeavor’s. We here at Willis Consulting Company takes great pride in the advice we give as we are cognizant of how unforgiving this concern can be. For 28 old ages, our company has weathered the storm under the brilliant leading of Ghenya Johnson therefore doing our name as one of the best consulting company in the part. We look frontward to working with each other and every one of you in recognizing your dreams and going the best that you can perchance be, here at Willis Consulting Company we pride ourselves on functioning the local and international community. Our piece of land record for the assorted old ages speaks for itself, we have helped falling cooperation acquire back on path. We will be looking frontward to working with you and we extend our deepest thanks for taking Willis consults as the thrust forcing to help you in this venture.
VISION STATEMENT
This company enables companies to come in new market, addition grosss and better operational public presentations, analyzes the current concern operation and determines ways that the company can run smoother.
MissionStatement
Our figure one end is to help our clients in any manner possible given them the competitory border that is needed to win in their assorted enterprises
Aim

To place the beginnings of finance available to concern
To understand the deductions of finance as a resource within a concern.
To do fiscal determinations based on fiscal information
To supply an assessment of the fiscal public presentation of a concern

Methodology
In seting together information on the research the research worker, acquired a wealth of cognition by qualitative and quantitative research methods which applied in this thesis in the class of informations analysis, Primary informations were collected through inquiries ( questionnaires ) asked two individuals in the concern field that the research worker is familiar with, these inquiries ( questionnaires ) were asked so researcher could hold a better apprehension.
Questionnaires can besides be analyzed more scientifically and objectively than any other signifiers of research and can be conducted by a big figure of people in a short period of clip and in a comparatively cost effectual manner. Harmonizing to Leary ( 1995 ) , there are distinguishable advantages in utilizing a questionnaire vs. an interview methodological analysis: questionnaires are less expensive and easier to administrate than personal interviews ; they lend themselves to group disposal ; and, they allow confidentiality to be assured. Robson ( 1993 ) indicates that mailed studies are highly efficient at supplying information in a comparatively brief clip period at low cost to the research worker.
The secondary informations which was used to explicate the theoretical model was gathered from the cyberspace ; the literatures and transferred prior cognition that was garnered from an in-class treatment as a beginning of informations aggregation.
Analysis
1.1
Identify the beginnings of finance available to a concern
Finance
Finance is a outgrowth of economic sciences concerned with resource allotment every bit good as resource direction, achievement and investing. Finance trades with affairs related to money and the markets.
SOURES OF FINANCE AVAILABLE TO BUSINESS

Hire Purchase- this is a sort of episode recognition, which is similar to renting the lone exclusion is that the possesstion of the good base on ballss to the hire purchase client to the concluding recognition episode, whereas a rental ne’er becomes a owner of.
Renting – this is a method of obtaining the usage of assets of the concern without utilizing
Bank Lending-
Government assistances-
Retained Earnings- the sum of gaining retained within the concern has a direct
Ordinary/ Equity shares- this is interchanging a part of the ownership of the concern for a fiscal investing in the concern. The ownership interest, ensuing from an equity investing allows the investors to portion in the company’s net incomes.

Analysis
1.2
ASSESS THE IMPLICATIONA OF THE DIFFERENT SOURCES OF FINANCE
Beginnings of finance can either be long term or short term. Long term beginnings of finance can be paid back over many old ages while short term beginnings of finance must be paid back in one twelvemonth clip.
Beginnings OF FINANCE THAT COVERS SHORT TERM:

An overdraft facility- this is where Bankss allow houses to take more money that it has in its bank history.
Trade credit- this is where providers deliver the goods now and are willing to wait for a period of clip before payment.
Factoring- this is where houses sell their measures to a factor like Bankss, they pattern this in order to acquire money immediately alternatively of waiting 28 yearss to be paid the full sum..

Beginnings OF FINANCE THAT COVERS LONG TERM:

Owners who invest money in their concern for sole bargainers and spouse this can be their nest eggs. For companies, the support invested by stockholders is called portion capital.
Loan from a bank or family/friends.
Debentures- these are loans made to a family.
Mortgage- this is a particular type of loan for purchasing belongings where monthly payments are made for the usage of equipment’s such as autos.
Leased – these are equipment’s on rental and non owned by the house, hired equipment’s are owned by the house after concluding payment.
Grants- this can come from charities or the authorities to assist concerns acquire taken up, particularly in parts of high usage.

Analysis
1.3
EVALUATE THE APPROPRIATE SOURCES OF FINANCE FOR BUSINESS PROJECTS
Whether 1 is get downing a new concern or seeking to spread out on an bing one, taking the right beginning of finance for the state of affairs can be really ambitious, therefore there are many beginnings to take from and each beginning of finance has its ain advantages and disadvantages.
Bank Loans- bank loans can be a existent good beginning as I may be able to guarantee the personal loan or line of acknowledgment ; these loans are available to finance the purchase of stock list and equipment every bit easy as to keep runing good as to obtain operating capital and financess for concern enlargement. These loans are clip honored and a really reliable method of financing a little patronage, finance houses with important collateral and a long class record, and the footings they offer are frequently really stiff.
Disadvantage

These loans are difficult to predominate unless little concern receives a substantial path record or valuable collateral like existent land.
Monetary value of bank loans- involvement rates for little concern loans from my boxes can be really high and the sum of bank support for which the concern qualifies is frequently non sufficient to wholly carry through the demand.

Advantage

Banks will merely loan money to a commercial endeavor based on the value of the occupation and its perceiving abilities to function the loan by doing payments on clip or in full.
Banks do non take ownership in your concern or acquire involved in any facets of running the concern to which it grants loan.

Recommendation
Finance is required to advance or make occupations, addition assets, green goods merchandises, run market studies every bit good as to promote.Establishment thought fundss on being antiphonal, efficient, and quantitative and risk averse. So the finance section is the bosom of the whole operation of a concern and that’s why this section is so of import and important.
Finance is needed throughout the life of every company, it is needed to get down a concern and incline it up to profitableness, the type and sum of finance required for a concern depend on factors such as the type of concern, the sum of money that will be needed and the clip p in which it will be needed, the success of the house and the province of the economic system. The fiscal demands of a concern will change harmonizing to the type and size of the concern. In the early phase of any concern one is improbable to hold all the capital it needs to acquire started, and so will hold a list of thoughts and options for funding. Since bank loans are the most traditional manner of funding concerns it is the method that most concern proprietors use in order to finance their concern, hence it has advantages and disadvantages like any other beginnings of finance so one should carefully see if it is the best option for the type of concern before doing a concluding determination.
There are two major beginnings of finance for any concern and these include the internal and external beginnings of finance. The proprietor of the concern is the 1 who chooses the best signifier of finance to be used by the concern, the concern can merely come on if the right beginning of finance is being used. There are three major types of support options that are available to little concerns and these are debt funding, equity funding and grants. Debt funding is the handiness of recognition or loans to little concerns that has a good recognition repute, nevertheless the cost of borrowing money is compared with the cost of equity funding for cost benefit analysis. Equity funding is the exchange of a part of the ownership of the concern of fiscal investings in the concern.

Decision
One of the primary ends of get downing up a concern is for doing money. Finance is the life blood of any concern, for every concern there is a great importance of finance. Finance is the most of import thing to run any concern as it helps it to turn, develop and spread out ; there are many beginnings of finance available to concerns. The categorization of beginnings of finance is dependent on assorted factors and these beginnings of finance can be classified as internal, external, debt, equity or short term and long term. . So the finance section is the bosom of the whole operation of a concern and that’s why this section is so of import and important.
There are assorted countries that the finance section covers which play an every bit as good function as any other in the company. One of these is “Budgeting and Forecasting and this is the relation of your concern and the external community. Driven by net incomes and development estimations, stock monetary values rely on timely informations prediction to accomplish optimum cost and market capitalisation. Another country that the finance section covers is the payables and receivables, this where the all hard currency flow into and out of the concern are managed. Sellers and creditors need payment right and on clip to maintain things running smoothly” . ( Griffin, n.d. ) . In the business, it is best to stay liquid, possessing the right measure of difficult currency on manus and at all times must keep payment programs tat keep back every thing on path as this is best. Small concern net income from this cognition even though non publically sold. Possessing cognition of natural stuff demands, staff office and staffing demand and enlargement demands force enterprisers to thoughtfully look at their demands. With the fiscal section being the nucleus of the organisation it needs to be managed decently so as to harvest better consequences.

REFRENCES

Dana Griffin, n.d.The Role of Finance in a Business. [ ONLINE ] Available at: hypertext transfer protocol: //smallbusiness.chron.com/role-finance-business-290.html. [ Accessed 21 January 15 ]

MindTools, n.d.Decision Making Techniques. [ ONLINE ] Available at: hypertext transfer protocol: //www.mindtools.com/pages/main/newMN_TED.htm. [ Accessed 21 January 15 ]

Categories
Finance

“Financial Crises and Corporate Finance: Causes, Context and Consequences”

1.0 Introduction – background to financial crash of 2007-8
This essay will examine the background and unfolding of the 2007-2008 financial crisis and its impact on the theory and practice of corporate finance. I will analyse whether changes to the way the financial and non-financial corporate sector operated over recent years contributed to the depth and severity of the crisis. Specifically, financial deregulation in the 1990s in financial markets and the securitisation of the corporate sector (Ball, 2009), have led to claims that the ‘solution’ to the so-called agency problem of aligning manager and shareholder interests may have actually made the crisis worse. I will argue that the easing of regulations on the mortgage loan sector especially increased the risks of a financial crisis developing by creating the environment for a massive financial asset bubble. Historically low interest rates and ‘easy money’ policies of the US Federal Reserve under Alan Greenp following the bursting of the technology bubble in 2000 created conditions for the bubble. I will also examine whether the growth in markets for innovative financial products such as CDOs disguised risks and even mispriced assets in the mortgage market by separating the obligation to fund the original loans from the trading of such obligations as collateralised debt. The outcome of the crisis in terms of future corporate financial behaviour and regulatory reforms of the corporate sector will be reviewed.
2.0 Corporate finance models and the financial crisis – the role of CSR

Critics of the corporate sector such as Simms have argued that the narrow focus among publicly listed companies on short-term profits over and above sustainable long-term corporate health, helped cause the financial crisis of 2007-9. The process of selling off traditionally run companies to global multinationals had led to the disappearance of famous companies such as Twinings and Cadbury from the British economy, and the loss of jobs related to these closures. Simms is not alone in claiming that the narrow pursuit of short-term profits as well as excessive pay among senior executives has not served the interests of the wider economy and stakeholders including workers and pension funds. Simms sees the selling off and closure of great British enterprises as the result of the loss of traditional family business ethics and their replacement by financial sector values of high returns to investors.
Fernandez-Feijoo Souto (2009) analyses the financial crisis in terms of the opportunities it presents for companies to refocus on corporate social responsibility. CSR is seen as growing in importance as part of the corporate culture although there is difficulty in defining what CSR actually means. Fernandez-Feijoo Souto argues that the financial crisis has provided a new urgency to the need to clarify what defines CSR and how it should be implemented. This includes building a name as a responsible business and relating this to growing revenue, keeping key personnel, understanding consumer’s bias toward companies with a good CSR brand; changing relationships through the value chain based on trust and treating customers and suppliers well; improving conditions which in turn reduce employee turnover and raise productivity, and reducing legal conflicts by complying with regulations. Simms argues that companies with a business model that has CSR built into it have been shown to be much better adapted to survive the challenges of the global financial crisis than companies that have followed a short-term profit strategy. He uses the examples of Bear Sterns and Lehmans, which traded under the saying “Let’s make nothing but money,” as classic examples of the kind of approach that led to disaster. However for each such example, one can point to a similar company, such as Barclays or Goldman Sachs, that have continued to thrive during the financial crisis despite having the same financial focused ethos. This is reflected in the evidence of numerous studies the result of which show unproven links between CSR and cost, profit and longevity (Fernandez-Feijoo Souto, 2009). There is evidence also of a split between positive economic results and more negative financial results, meaning that potentially short term financial gains may come at the cost of longer term economic performance.
Lipton, Lorsch and Mirvis (2009) state: “Excessive stockholder power is precisely what caused the short-term fixation that led to the current financial crisis.” They point to money managers focused on short-term financial results who fuelled excessive risk taking. This tendency was favoured by government and regulators failing to impose checks on risk taking. Lipton, Lorsch and Mirvis see a “direct causal relationship between the financial meltdown and the short-term focus” of stockholders.
3.0 The role of securitisation in the financial crisis
Securitisation of the mortgage and loan market, which developed in the 1990s, is seen by some commentators as central to the development of the financial crisis of 2007-8. Securitisation of asset-backed bonds is the process of creating debt instruments from a package of loan assets, usually home loans, commercial loans and retail loans such as credit card debt or auto loans. This allows banks to release value from the assets on their balance sheet. The asset-backed market was developed in the United States and grew rapidly from the early 2000s. Banks and other originators of mortgages sold on packages of their loans to an issuer, usually called a special purpose vehicle (SPV). The purpose of the securitisation is to reduce the institution’s balance sheet, which allows its return on equity to rise and also releases capital for other purposes. The process of securitisation enables the issuer to achieve enhanced credit ratings, usually up to AAA investment grade (Sundaresan, 1997). The credit rating of the original loan does not affect the rating of the SPV, even if the original mortgage holder defaults on the loan or is declared bankrupt. The securitisation deals are normally rated by credit ratings agencies such as Moody’s, Fitch or Standard & Poor’s. The investment bank or investor which purchases the SPV securities will often approach an insurer to gold plate the deal by providing a credit default guarantee for the SPV in the event of default (Teasdale, 2003). It has been argued that the complexity of securitisation restricts the ability of investors to assess risk, and that securitisation markets are likely to be subject to serious declines in underwriting standards.
3.1 Credit Default Swaps – analysis of impact of CDS market in the financial crisis
The huge growth of the credit default swap (CDS) market is considered by many analysts to be one the worst elements of securitisation. The Bank for International Settlements reports that the CDS market increased in size from $6 trillion in 2004 to $57 trillion in June 2008 measured by notional principal (Stulz, 2010). The government bailout of AIG brought the CDS market to global attention, and led some commentators to see the CDS market as the primary cause of the financial crisis. As Stulz (2010) argues, there are two problems with the CDS market. First, the sellers of credit default swaps are not able to bear the risks they took on, so some of the benefit of credit default swaps in terms of hedging are actually unfounded – ultimately leading to the $80 billion bailout of AIG. Second, because of their inherent leverage of a CDS, they can enable investors to take more risky positions. The availability of these instruments to non-risk-averse investors may lead to risk being under-priced. However, Stultz shows how the CDS market performed remarkably well around the default of Lehman Brothers. The credit default swap market did not cause the subprime mortgage defaults or the disappearance of liquidity. Excessive leverage by financial institutions and the collapse of the housing market was the cause of the crisis. For example, AIG borrowed heavily to acquire home loan-backed securities and it made even bigger losses on its portfolio of home loan-related securities than on its credit default assets.
4.0 Ponzi schemes and failure of investment banks to report criminal behaviour
The crisis also revealed outright criminal activity taking place in the investment sector, most famously in the case of Bernard Madoff, whose wealth management business was exposed as a Ponzi scheme with $65 billion funds missing from accounts. Madoff was sent to prison for 150 years. JP Morgan acted as banker to Madoff but did not report their suspicions about his activities to the SEC (Ferguson, 2012). Critics have commented that there have been very few prosecutions of investment bankers for such activities as ‘shorting’ the very stocks that they recommended to their clients (Lewis, 2010). The Securities and Exchange Commission and New York prosecutors have brought very few prosecutions and no one has faced criminal conviction. Ferguson points out that Morgan Stanley’s Howie Hubler began to bet against securities connected to the subprime market in 2004 with management approval (Ferguson, 2012). The title of Ferguson’s film ‘Inside Job’ refers to the pattern of investment bankers and lawyers whose clients are banks then taking senior judicial and political roles in the government and financial authorities. This, it is argued, has caused a disincentive to go after the banks for actions that could be prosecuted.
5.0 Reform of corporate finance regulations – legislation and limits of reform
Reform of the banking and wider corporate sector has been discussed and enacted in a variety of forms in the US and Europe. Banks have undergone stress tests to see if they could cope with further financial crises. The UK authorities have begun to reform corporate governance to give shareholders greater power to oversee compensation of executives, such as binding votes on executive pay, but this has not yet been implemented. New rules on the levels of reserves that banks must hold in order to ensure they are able to cope with future crises were agreed in November 2010 at the G20 summit in Seoul. G20 Finance Ministers backed the Basel Committee on Banking Supervision’s plans for capital and liquidity requirements for financial institutions. However most of these new reserve requirements have not yet been enforced, partly because the banking sector remains extremely fragile following the financial crash with high level of debts still threatening the financial system. Following the crisis, there were many calls for the separation of retail and investment banking, or even the breaking up of ‘too big to fail’ banks, but these have not been acted on by government. President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law in July 2010. The Act marks the biggest reform of the US financial sector since the Great Depression (Avery, 2011). Section 939A of the Act effectively bans the use of credit rating agencies in an attempt to improve capital requirements for US banks. However implementation is likely to take many years.
In America economists such as Paul Krugman have called for a return of the Glass Steagall Act 1933, which was put in place following the 1929 Wall Street Crash and then removed in the 1990s as part of the liberalisation of the banking sector (Krugman, 2011). Countries with stronger regulation of their banking sector, including Canada, Australia and Germany, did not suffer a banking crisis in the manner of the UK and USA, where regulation was ‘light’.
6.0 Conclusion: comparison with regulatory response to 1929 Financial Crash
By comparison with the response of authorities to the Great Crash of 1929, it can be argued that through to 2012, five years after the crisis began, major reforms to the banking sector and to corporate governance in the US and UK have not been implemented in the way they were in the 1930s. This may be a result of the fact that governments and securities oversight authorities are far less independent of the corporate finance sector than they were in the 1930s. The financial services sector has grown in relation to GDP compared to its position in the 1930s, and its political influence is far greater. This means that reform and regulation has been much slower and weaker than it was in the last Great Depression. Calls for reform will not go away, especially as the crisis continues in Europe and North America. Action on corporate governance, and implementation of proposals for financial and banking reform will be required in order to prevent further financial crises occurring in the future.
REFERENCES
Avery, A. W.; 2011. Basel III v Dodd-Frank: What Does it Mean for US Banks, Who’s Who Legal.
Ball, A. 2009. The Global Financial Crisis and the Efficient Market Hypothesis: What Have We LearnedThe University of Chicago Booth School of Business, Journal of Applied Corporate Finance, Volume 21, Issue 4, pages 8–16, Fall 2009
Ferguson, C; 2012, Heist of the century: Wall Street’s role in the financial crisis, The Guardian, 20 May 2012.
http://www.guardian.co.uk/business/2012/may/20/wall-street-role-financial-crisis
Fernandez-Feijoo Souto, B.; 2009. Crisis and Corporate Social Responsibility: Threat or OpportunityInternational Journal of Economic Sciences and Applied Research, Vol. 2, No. 1, 2009.
International Corporate Governance Network (ICGN), 2008, Statement on the Global Financial Crisis.
Krugman, P and Wells, R., 2011, The Busts Keep Getting Bigger: WhyNew York Review of Books,14 July 2011
Lewis, M. 2010, The Big Short, Allen Lane, Penguin.
Lipton, M; , Lorsch, J. W. and Mirvis, T.N, Schumer’s Shareholders Bill Misses the Mark, Wall St. Journal, 12 May, 2009
Mirvis, Wachtell, Lipton, Rosen & Katz, 2010. Corporate Governance and the Financial Crisis: Causes and Cures, February 28, Harvard Law School Forum on Corporate Governance and Financial Regulation.
Sims, A; 2010. The power of corporate finance is an amoral hazard, The Guardian, 8th September, 2010.
http://www.guardian.co.uk/commentisfree/cifamerica/2010/sep/08/power-corporate-finance-amoral-hazard
Stulz, R.M., 2010, Credit Default Swaps and the Credit Crisis, Journal of Economic Perspectives, Vol. 24, No. 1: 73-92.
Sundaresan, S., Fixed Income Markets and Their Derivatives, South-Western Publishing, 1997, chapter 9.
Teasdale, A; 2003, The Process of Securitisation. YieldCurve.comhttp://www.yieldcurve.com/Mktresearch/files/Teasdale_SecuritisationJan03.pdf

Categories
Finance

A Summary of Four Articles on Finance from the Internet

This article furnishes its readers with relevant tips for parents who want to successfully send their children to school as they reach for some higher level of scholastic learning. It begins with the basic problematic most countries the world over is beset: government subsidies to defray the expensive cost of education for students (and parents at that) do not seem to cover that much.

The case in point, at least specifically for this write-up, addresses how the government has stopped its subsidies for “student fees” which in turn makes it quite difficult for both parents and students to cope with.

The article submits certain proposals to help both parents and students address the mounting task of university education.
Among the choices include availing of loan packages such as: Student Loans (managed by Student Finance Direct), which allows a student to borrow money at a modest 9% interest, to be subsequently paid after graduation; Student Grants” – the more “generous” type of grant given to financially challenged families, or to single parent students, as even to those whose financial income is below 17,000 per annum.
The article ends with alternative proposals that touch on some more means to get this whole university education going. Whichever the readers choose though, the bottom line remains: sending one’s children to school may appear to be an insurmountable task, but it is not impossible nevertheless.
1.      Top tips for first time buyers[1]
The central concern of this write-up is to guide first time homeowners on important issues, which can either make or break their whole experience of buying a house. True enough, the first premise of the article is telling enough to even dismiss or set aside – buying a house is a big commitment and entails having to shoulder a lot of responsibilities in the years to come.
First up, it is by right of commonsense that buyers are given this Bible-piece of advice: do not buy what you cannot afford. The initial temptation to procure a property based on the impulse to acquire an ideal house can at times blur the fact that there are some financial considerations that cannot be left out – these include, among others, “duty, solicitor and/or estate agent fees, a valuation report”. To be sure, this does not even include transfer and renovation costs.
The article also gives vital information on the remaining important things that should not be missed. Among others, buyers have to be fully aware of the stipulations of the contract, the mortgage deals that they are agreeing to put up with and payment methods. Still, some other concerns that include insurance policies, procurement of home appliances, the suitability of the house location vis-à-vis one’s work or children’s school are to be considered.
2.      Savings and investments for your children[2]
“Children don’t come cheap” is the statement that commences this short yet very insightful article which deals with an effective and forward-looking ways to invest for one’s children. In this times when managing one’s finances rightly becomes more and more difficult to do, it is certainly with a great sense of love and concern that one is called for to save for his/her children’s future and not compromise their wellbeing in the process.
There are a few things that can be noted to help achieve this task. First up, the article proposes that parents should open a “bank account” for their children. It may seem like it is too early children to actually save. But the whole point of the exercise is to start saving regularly when one finds some time and resources to do it. As in a case of a habit, saving little pennies for one’s children can “accumulate quickly” without actually being noticed.
Another proposal that the article gives is for parents to set aside some tax relief that the government provides for parents who raise children. But this can only happen if one is willing to actually avail of the tax allowance in the very first place.
As it stands, tax reliefs for parents raising their children is one hefty source of cash, and it defrays the cost of the children’s living expenses in many ways. It may be wise to check on the availability of this type of resources, as the article would implicitly suggest.
The article ends by elaborating how a parent can opt to open a trust fund for his/her children. This is a real investment for the children, yet it comes in a variety of choices. One may opt to simply save straightforwardly to a company for the children. Another option is to invest as though one does in stocks or shares. The third can be a combination of both. It really is up to the parents to choose the most viable alternatives to ensure that their children’s needs in the future will be secured and protected.
[1] Top tips for first time buyers, retrieved 14 May 2008, http://www.financialarticles.info/article_50.html
[2] Saving and investments for your children, retrieved 14 May 2008,  http://www.financialarticles.info/article_45.html