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Should college students be encouaged to pay the Housing Fund? [Copy link] 中文

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Post time 2017-4-23 14:10:17 |Display all floors
Amid the tightening policies for the property sector, five Chinese cities include Wuhan, Chengdu, Changsha, Hefei and Nanchang announced that the local governments will encourage college students to start paying the Housing Fund before they have a job. The Housing Fund, also Known as the Housing Provident Fund, established in 1999 for helping Chinese employees save money on monthly basis in order to buy their own properties in the future.Wuhan Public housing Fund Management Center expressed that the government attempts to ease the students’pressure for buying or renting a property after their graduation. Should the local governments encourage college students, who do not have stable income, to pay the Housing Fund at such an early stage? Will this initiative helps ease the pressure, or does it increase burden for parents?

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Post time 2017-4-23 19:54:47 |Display all floors
It benefits students who have financial resurces ( = wealthy parents) to afford those payments.

It adds to social disparity and negates some of the efforts in poverty reduction and urbanization, because poorer students who may be bright enough to have their higher education sponsored, will not have this housing fund sponsored, I assume.

Thus they will have harder time in future to purchase property and get hukou in city, while the wealthy get wealthier regardless of their academic performance.

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Post time 2017-4-23 21:45:45 |Display all floors
I would prefer the opposite - ban students from contributing to such funds, unless they produce the contribution by their own work. It would promote hard work and enterpreneurship, instead of transfering fortune across generations - especially in this kind of case, where government has a role in leveraging those contributions.

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Post time 2017-4-24 05:55:26 |Display all floors
Jaaja Post time: 2017-4-23 21:45
I would prefer the opposite - ban students from contributing to such funds, unless they produce the  ...

Very well. I agree.  

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Post time 2017-4-24 07:39:37 |Display all floors
The funds centers should show first the spreadsheet to justify the business case for students without jobs and therefore without incomes to go into debt to contribute to the fund.

Don't load students before they even have jobs. Whatever money they have will be needed to find jobs first. That is their priority. Then after getting a steady job, the contribution can be considered but on a scale-basis calculated on their monthly net pay.  

That said, how about a national program to educate people on the importance of life-long personal finance? How much to save, spend and invest for old age, etc according to life cycle.

Too many societies elsewhere are coming to grief as their citizens are finding they have only life savings to last six months and woe betide them if they suddenly lose their jobs or employability.

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Post time 2017-4-24 07:39:53 |Display all floors
This post was edited by markwu at 2017-4-24 08:06



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Post time 2017-4-24 10:13:53 |Display all floors
Jaaja Post time: 2017-4-23 19:54
It benefits students who have financial resurces ( = wealthy parents) to afford those payments.

It  ...

I agree. This will accelerate the already widening wealth gap in China and deprive the impoverished families of the opportunity of a better life.

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