To help with university costs, Parents need to save £82 a month from child’s birth!
Parents in professional jobs are planning on paying for two-thirds of their children’s university costs but they need to start saving early.
Parents in professional jobs would like to ease their child’s student debts by contributing 67% towards their university costs research by Wesleyan found. 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 secondary school education.
While it may seem a large sum of money to find in one go, 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.
And 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 to help support them through university.
It has been well documented in recent times that higher education costs have soared in recent years and there is no sign of easing with maintenance grants being replaced with loans and some universities being allowed to increase tuition fees from 2017.
“With A-level students receiving their results last Thursday and the GCSE results out tomorrow it makes many parents think about their children’s future and wanting them to be financially secure. With more graduates facing large debts when they finish their education, it is understandable parents want to help where they can.” Mark Albinson from the Children’s ISA commented.
“Parents should make use of the full Junior ISA allowance each year. The earlier parents start saving, the more affordable it will be.” Said Albinson.
“As many parents are prepared to pay for some, but not all university costs, which will still leave their children in some debt. Starting a Junior ISA early for a child will also help to instill good financial habits in their children from a young age, which will help them to cope with their student debt and ongoing money matters into adulthood.” He added.
The Children’s ISA offer a range of Stocks and Shares Junior ISAs to accommodate all financial approaches and requirements. A regular payment as little as £10 a month can be paid into a Children’s ISA account monthly to help you save for when your Children grow up! Visit www.thechildrensisa.com for more information.