14th August 2015
Parents in professional jobs are planning on paying for two-thirds of their children’s university costs but they need to start saving early.
Research by Wesleyan found professional would like to ease their child’s student debts by contributing 67% towards their university costs. With the average student leaving university with debts of £40,500 today that could mean parents have to find £27,135 by the time their child leaves education.
While it may seem a large sum of money to find in one go, Wesleyan said that saving £82 a month from birth to graduation means that cost is covered.
If parents leave saving until a child starts primary school aged five they will need to save £115 a month and waiting until their child starts secondary school means they have to save £199 to reach the same amount.
For those parents who leave it really late and don’t start saving until their child is 16, they would need to put away £424 a month to reach £27,135 by the time their child graduates.
Alan Whiting of Wesleyan said: ‘Higher education costs have soared in recent years and show no sign of easing with maintenance grants being replaced with loans and some universities being allowed to increase tuition fees from 2017.
‘With more graduates facing large debts when they finish their education, it is understandable parents will want to help where they can, even if they don’t intend to cover all the costs. The message for them is clear – the earlier you start saving, the most affordable it will be.’
He said parent should make us of the full ISA allowance each year.
‘Many parents are prepared to pay for some, but not all, university costs, which will still leave their children with debt. With this in mind, parents might also want to instil good financial habits in their children from a young age to help them cope with their student debt and ongoing money matters once they’ve graduated.’