It’s no secret that the cost of the “University Experience” is now higher than it has ever been. According to The Guardian, the average cost of a degree per child is now around the £85,000 mark, and it is Parents and Grandparents who are playing an increasingly significant role in funding this. The estimated cost of studying in England is £22,189 over a 39-week year, and typical students (whose parents have an average household income) only receive £14,370 in loans and grants, meaning they (or you) need to make up a surplus of £7,819 on average, or £651 a month!
A lot of the older generation have money available to help, but it is locked away in pensions which cannot be accessed. Pension regulations now allow for income to be taken flexibly, on an as and when basis if needed, and this gives Parents and Grandparents the ability to help out the younger generation in paying for their university life, as well as have flexibility on how they take their own income. Let’s not forget that it is not only tuition fees that need to be paid, but books need buying, bills need paying and of course, social lives need funding.
If, on the other hand, you are a younger parent and are now worrying about how you will fund your child’s future education, that is also something we can help you with. Savings Plans and Investment ISA’s are now more important than ever, and they are something which we can look at setting up for you. With the limit on how much you can pay into an ISA now £20,000 per tax year, we can help you to maximise your saving potential for your children’s futures.
If you are in a position where you think that you can help out your Grandchildren or Children, and want to talk to someone about how you can do this, get in touch with us on 01543 440 300, or drop us an email at email@example.com.