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Comparing degrees to apprenticeships as a way of starting a career in accountancy and finance

Comparing degrees to apprenticeships as a way of starting a career in accountancy and finance

Comparing degrees to apprenticeships as a way of starting a career in accountancy and finance

hi I’m Gareth now when people are starting their careers I think a lot of people have high hopes high ambitions what they can achieve perhaps they can end up living in a nice big house driving a nice car or maybe take exotic holidays to far-flung locations and a lot of people still assume that if they want to achieve those sorts of things they’re gonna have to go to university I’ve read a few statistics over the last few days that I thought I’d pull together because I think they paint quite a powerful story that university isn’t necessarily going to be the best option for everybody statistic number one some research on des taken by City & Guilds identified that currently 70% of teenagers are planning to go to university statistic number two the Institute of Fiscal Studies recently identified the a graduate leaving University after a typical three year degree program OHS on average a toad for 57 thousand pounds now you might be aware they won’t start repaying that debt until after they earn more than 21 thousand pounds but you’ve got to remember is that they’ll still be incurring interest on their debt and in fact the interest rates at the moment are just over six percent that’s pretty high and so even before the Graduate starts repaying their debt they’re going to see that fifty seven thousand pound increasing year-on-year and even when they do earn the twenty one thousand pounds let’s say they’re at a relatively low level of 25,000 or 30,000 pounds salary the value of the repayments being made why should be less than the extra interest that’s being added every year so the debt will still be rising in fact the tipping point here statistic number three the tipping point at which the level of repayments will be greater than the extra interest is at forty eight thousand pounds so it’s only when a graduate is earning forty eight thousand pounds or more that the level of debt is going to start falling statistic number four in an Elio study the new starting salary for an average graduate is currently twenty five thousand pounds and in fact even for a graduate ten years after leaving University it’s still only thirty one thousand pound which is well short of that forty eight thousand Penn tipping point at which the level of student debt would be falling and this means a lot of graduates are going to be saddled with that debt until they’re well into their 50s and in fact they reckon that three-quarters of graduates won’t be able to repay their debt at all to think says an awful lot about the earning power of graduates and the value of degrees of a final statistic I will leave you with again from City and Guilds only thirty percent of jobs are forecast to require a degree and if we tie that back to the very first statistic we saw that seventy percent of teenagers are going to go to university but only thirty percent of jobs are gonna require a degree I think there’s gonna be an awful lot of people suffering huge amounts of cost and incurring large amounts of debt debt that will saddle them potentially for decades of their life to earn a qualification that really isn’t going to help them in the workplace now if you contrast that against some of the school leavers I’ve taught in recent years they come into a qualification perhaps like AAT sometimes even before their 18th birthday they achieve that first accountancy qualification by the time they’re nineteen that they use as a springboard then into one of the higher level professional qualifications like I CAW ACCA or Sima they achieved that by the time they’re 22 which puts them a good couple of years ahead of a typical graduate they’ve got a lot more workplace experience to qualifications under their belt and crucially no debt

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