Bank of Ireland suggesting people should move back to their parents to save the deposit?

Brendan Burgess

Brendan Burgess

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Why has Bank of Ireland got such hassle over this?

http://www.newstalk.com/Bank-sparks...ouraging-young-people-to-move-in-with-parents

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Karl Deeter talking common sense as usual:

"I understand the anger, and I've been writing about it for a long time... [But] there is no alternative. There's no white knight going to come over the hill and save you from the reality - which is sometimes you have to make choices that are difficult in order to get ahead.

"I don't think being angry is going to fix any of that. I actually commend people who make that choice and take the pain of it. And let's be honest - unless you live in a nightmare home, it's not exactly the most painful thing in the world to move home for a while and save."


Dr Ciara Kelly, however, suggested: "There is an inter-generational transfer of wealth from the young in this country - and in other countries - to the older generations who have the big pensions, who have the nice houses - and who are sitting fairly pretty, while young people are working in a gig economy with new security and no prospects."

So what? Complaining about this inter-generational transfer of wealth is not going to help people buy their first house. I would guess that many of the parents who have become rich lived with their parents until they bought a house.

Brendan
 
In a statement, Bank of Ireland said:
"The ad featured one couple's deposit saving experience, it wasn't intended to cause offence and wasn’t intended as advice for customers."

Why does Bank of Ireland waste time and money on mor-ketting nonsense like this???

It's not really generally applicable advice is it... what if your parents don't live anywhere near where you work or study?
You have needlessly potentially annoyed them...

And BOI are quite clear it's not advice. So what was the point of this exercise?

Is there a single person who seeing this ad changed their mind and is now living at home and will look to BOI for a mortgage because of the ad?

Advice to Bank of Ireland. Start doing the stuff customers want you to do and not this nonsense. Cut our current account fees and halve your marketing budget, as it's clearly staffed by non essential idiots.
 
Brendan Burgess said:
Dr Ciara Kelly, however, suggested: "There is an inter-generational transfer of wealth from the young in this country - and in other countries - to the older generations who have the big pensions, who have the nice houses - and who are sitting fairly pretty, while young people are working in a gig economy with new security and no prospects."

So what? Complaining about this inter-generational transfer of wealth is not going to help people buy their first house. I would guess that many of the parents who have become rich lived with their parents until they bought a house.

Brendan
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I do agree that people must save hard and sacrifice to get a mortgage.

However, the intergenerational transfer of wealth is correct.

Every welfare payment was cut twice during the crisis EXCEPT the State Pension

My retired parents are undertaxed, they pay less than 10% direct tax on 49k income, and get:
  • two medical cards
  • two travel passes
  • 35 pm / 420 pa off their elec bill
  • free TV licence

yet they have 400-500k in financial assets, excl their house!!
 
Generation Snowflake strikes again...this was oversensitivity in the extreme. I'm surprised at Dr Ciara Kelly; there is a world beyond the "gig economy", but Generation Snowflake seem to believe that they can work as dolphin photographers and still be able to afford to buy a house in South Dublin. The world is a tough place, and getting tougher unless you earn a decent living (i.e. >€60k a year).
 
Excellent opening post.

There is a tendency for people to say the world is unfair and the sit on our hands until it becomes fair.

You need to deal with the unfairness now as best you can, and make your contribution to increasing fairness.
 
Gordon Gekko said:
Generation Snowflake strikes again...this was oversensitivity in the extreme. I'm surprised at Dr Ciara Kelly; there is a world beyond the "gig economy", but Generation Snowflake seem to believe that they can work as dolphin photographers and still be able to afford to buy a house in South Dublin. The world is a tough place, and getting tougher unless you earn a decent living (i.e. >€60k a year).
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Gordon

I will be discussing this on Matt Cooper today at 4.40 pm. Don't be surprised if I plagiarise some of this.

Brendan
 
I am not sure that this "inter-generational transfer of wealth" thing is anything new.

When I was a trainee accountant the elderly partners captured most of the firms income. As I understand it today, those from the mid 30s to the mid 50s take much more than the older survivors.

It is true that the OAP has been well protected but I see that as a transfer from the productive to the non productive which is over done in this country at all levels.
 
Not all elderly are well off though, my father has just state contributory pension as income which is insufficient to pay the bills especially heating in his old not valuable house and live on. Free travel useless to him, no public transport anywhere near him, yes he has the free tv licence and the electricity allowance but it's not a whole pile. While he has a medical card we also pay for health insurance for him thankfully as he has already had a couple of 'trolley' experiences.

On the other hand I would not want my adult children moving in with me, selfish of me maybe but I've done my bit, time to make their own way.
 
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Don't see what the fuss is all about, loads of couples are doing this, I come across it all the time. It's almost normal for 1st time buyers with no equity. With the price of rent these days and the low supply of houses for sale, 1st time buyers can't rent and save enough. Neither of these issues are the banks fault. I do have some sympathy with the parents though. They have their kids moving back in, then they might be providing a creche service for another who can't afford their mortgage and childcare costs. So while they may have more wealth, they don't have as much time to spend it as they are still helping out their adult children.

Generation X are the first generation to be poorer than the previous one. There are plenty of reasons for this:

  1. Debt - we have much more debt than before. The cost of housing in this country is off the charts and the debt that goes with it too usually means both people need to work.
  2. Childcare - the cost of a second mortgage. Successive governments have ignored this costs and refused to help young couples with kids.
  3. Pensions - The mandatory pension scheme is gone in a lot of places. There is always a demand on money so it is easy to put off saving for retirement.
  4. Education - education is key now. The days of finishing school and starting in a job the next day paying decent wages and a DB pension scheme is gone. Those types of jobs are either automated or in China. They have been replaced with zero hour contracts in the retail sector, paying minimum wage. So if you want a job in a factory, you have to be the person who knows how to fix the robot that has replaced people. And that needs a college education.

Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
SBarrett said:
  1. Education - education is key now. The days of finishing school and starting in a job the next day paying decent wages and a DB pension scheme is gone. Those types of jobs are either automated or in China. They have been replaced with zero hour contracts in the retail sector, paying minimum wage. So if you want a job in a factory, you have to be the person who knows how to fix the robot that has replaced people. And that needs a college education.
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And that is where the current generation are being let down in a big way.

When you leave school you cannot speak a foreign language, even if you did well in it at school.

If you did well at maths your knowledge of Calculus or Algebra is less than those who left school 10 years ago.

If you didn't do well at languages or maths and don't go to college the apprenticeship scheme, which was fairly good 30 years ago, is almost unchanged. It has completely failed to keep up with a changing world. You can train in construction or hair dressing but little else.
 
Hairdressers can attend QQI Level 5 and Level 6 courses in Further education colleges.

There are also engineering courses at QQI level 5 and 6 in further education colleges.

Marion
 
With all due respect theres no such thing as a level 5 "engineering" course, a pre requisite for engineering in my engineering company is Masters Level, which is a level 9 degree or level 8 with experience. Other levels simply don't have enough ability to compete with international graduates which are competing with the local pool. The standard of mathematics has been lowered to boost enrollment, much to detriment of third level quality of graduate standards.
Fidel.
 
That's hilarious, with all due respect.

I have just seen my timetable today and I have an "engineering" class at Level 5. 5M 2061

Marion
 
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SBarrett said:
The days of finishing school and starting in a job the next day paying decent wages and a DB pension scheme is gone.
Click to expand...
What era was this ? certainly not in my day.
SBarrett said:
The cost of housing in this country is off the charts and the debt that goes with it too usually means both people need to work.
Click to expand...
Again in my era both generally had to work - alternative was to move to somewhere you could afford like the shticks.
SBarrett said:
Childcare - the cost of a second mortgage. Successive governments have ignored this costs and refused to help young couples with kids.
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Or perhaps a bit of family planning to get priorities right ?
 
elcato said:
Or perhaps a bit of family planning to get priorities right ?
Click to expand...

For most young couples, having a family is the most important thing. And they pay for the massive childcare costs too. But having to pay €2,000 a month in childcare fees is not a good way of building wealth. It is a factor in why this generation is poorer than the previous one.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Marion said:
That's hilarious, with all due respect.

I have just seen my timetable today and I have an "engineering" class at Level 5. 5M 2061

Marion
Click to expand...

There are engineers and "engineers". The person who comes to fix the photocopier is an "engineer", the person who designs bridges is an engineer.

To put it another way the Institute of Engineers as far as I know requires a level 8 degree for associate membership.

The difference is the maths.
 
There is a big difference between using a computer and designing the integrated circuits , to writing the code & algorithms which enable the computer to work.

Similarly between fixing an engine and designing the engine, or pouring concrete to working out the loadings, stresses and safety criteria in critical systems.

5M 2061 ? ...that's clever marketing by the universities and "further" education "institutes" which is the root of a lot of let down young graduates compared to the international pool available, thanks to so called STEM initiatives and use of IPads rather than concentrating on the basics

The Berlin wall fell in 1989.We can hire from the 28EU and more countries now who thankfully do teach log tables, probability, statistics, integration, not found in 5M 2061
Fidel.
 
Rather than looking at that course as an end in itself, we should, perhaps, look at it as a starting point for some.

If it enables talented people to get a chance to return to education or those straight out of school to use it as a stepping point to enable them progress on to Level 8 and 9 in the colleges and universities then it serves a great purpose, and getting back on track provides them hopefully with good jobs and coresponding good salaries so that they can have a decent standard of living and be able to save for a mortgage if so desired.

Marion
 
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