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School and college days are supposed to be the best of your life. Maybe, but when you come out of education and you're faced with a debt running into thousands of dollars, you might just think again. Was it all worth it?

In your teens, school is an occupational hazard! You have no choice. This is not a bad thing as it is in everybody's interests that our young people - the future of the nation - are well educated. But with the demands of the system, there is little time left for our young people to enjoy themselves in their spare time. They are kissing good bye to their childhood and preparing to embark on the next stage of their life. Yet we are warning them that they will soon be faced by potentially crippling bills if they want to continue their education. Is this really fair? Are we not taking away the incentive for them to carry on learning?

Whatever we may think, the reality is that they are going to have to find an awful lot of money to see themselves through college. The big question is where that money is going to come from. Many young people have week end and holiday jobs. The relatively small amounts of cash they earn from that gives them their first limited taste of financial independence. I believe they should be encouraged to decide to save some of that for the long term; spend some on themselves buying items such as clothes, music or hobbies; and maybe put away a bit for college. As a parent I told my son I would pay ten times what he saved into a special college account for him. That was a huge incentive for him - and one I was glad to make.

When he went to college, he still faced a shortfall. He initially got a job in a burger bar, something I was not keen on. I felt his commitments in college should come first. It was important to have down time to enjoy himself. But the added burden of a regular part time job would get in the way. After a month or so he quit, with my blessing. We have had long conversations about his finances. He was tempted to take out a cheap student loan. But I think it is unfair that as soon as he finishes college and starts to work he faces repayments. I agreed to make him a weekly payment interest free. He has made a verbal agreement to pay it back as and when. Fortunately, I am in a position where I could afford to give him the money. But I feel it is important that he takes ownership of the debt to learn financial discipline. But I do not want him to be stuck with high monthly payments for five or ten years when he starts work - that is when he will not be earning huge amounts and will need every cent he can find.

Not everyone is so fortunate. Some kids have to find every single cent to pay for their college studies. The debt builds up over the years and they are not really rewarded for deciding to stay on in full time education. I take my hats off to them. As a country we should be doing more to help them.

Learn more about this author, Phil Hill.
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