You may be asking yourself, what can I do to help send my child to university? Wanting your child to go to university is a very natural wish for them. But as you are probably aware, this carries a rather large price tag.
So how can you prepare your finances so that you can support your child’s journey into higher education?
So here are some tips to consider when helping your child thrive in their new environment.
Figuring out how much you will need to save
It is key to consider that there are not just tuition fees that need to be taken into account. Living costs such as food bills, course materials and funding their household essentials soon adds up.
You should try to figure out how much this will cost in total and then break this figure down into realistic monthly or annual saving targets. That way, these costs won’t come as a shock closer to the time.
If you do save a particular amount over time, don’t forget to factor it into your monthly or annual budgeting.
Junior ISAs and saving for University
By setting up a junior ISA for your child, you can save up to £9,000 per year for your child into a Junior Individual Savings Account. Your child will not have to pay any tax on the interest earned on the ISA account so it could be an ideal way to build up a pot of money before they turn 18.
Make your savings plan as far in advance as possible
If you already believe your child would like to go to university, or you would like to offer them the opportunity, saving sooner rather than later so that you can give yourself time to build up a healthy amount of savings and enjoy more compound interest, or return of your investment.
Remember Your capital is at risk. Equity investments do not afford the same capital security as deposit accounts. The value of your investment (and any income from them) can go down as well as up and you may not get back the full amount you invested.
Advise your child to get a part-time job
If your child is age 16+, advising they to take up part time employment could be a great way of teaching money management and valuable life lessons before they venture into university life. If they save money from their employment, this can also be a great safety net for them and ease some of your pressure to save.
Explore your child’s student finance options
In the UK, British citizens are entitled to apply for a tuition fee loan which covers the cost of their education. A maintenance loan is also available, but this will vary depending on your household income. The maintenance loan does help cover their living costs whilst studying.
Speak with a financial adviser
Saving to provide your child with the opportunity to go to university can be difficult, especially whilst balancing other financial commitments and goals. If this is the case for you, it’s worth seeking advice from a professional, regulated adviser as they will take a holistic look at your finances and work alongside you to create a plan of action that reflects your financial goals.
If you do have any questions about saving to send your child to university, get in touch and a financial adviser will be happy to speak with you.