Saving for university is something all parents might want to think about. The cost of attending university in the U.K. went up to max of £9,250 per year. Across an average three-year degree total fees equate to a whooping £27,750. That isn’t even accounting for the cost of living, rent and travel costs.
My eldest daughter is only in her toddler years but it’s a scary thought for the future. She may not even want to go to university but I would like her to have a choice when she gets there.
It took me over 10 years to pay back my degree and I didn’t have the large loans my daughters might require.
Saving for university
Consider your child may work part-time to cover some living costs, how much would you need to save to pay for their fees.
Total yearly tuition costs (assume current highest rate) – £9,250
Average cost of three-year degree – £27,750
Age at which child attends university – 18 (total number of years to save if starting from baby)
Amount required to save each year ( £27,750 / 18 ) – £1,542
Amount required to save each month from birth ( £1,542 / 12 ) – £128.50!!!
This is for one child and I have two, so we are looking at a total monthly amount of £257 to help saving for university. The FT wrote an article on saving for university. They calculated the total fees based on a four degree so this equates to even more every month.
It is a significant amount of money to regularly put aside now for 18 years time. If you are similar to me and my family, it is just impossible with all the other costs of living. Therefore I have to come to the conclusion that unless we win the lottery, we won’t be able to raise the upfront cost of university fees.
Now whilst we might not be able to save all their fees, what I hope to be able to do is put aside a much smaller amount each month. I know this won’t cover all of the cost of university, but I hope it gives them enough so there is a choice to make when they get old enough. Then they can weigh up whether university is right for them and their careers.
I am happy as long as my daughters are happy, I just want to provide them with freedom to pursue the path they want. Surely that’s what we all want as parents in the end.