Resent research conducted by F&C, indicates that more than 70 per cent of parents are not saving towards their children’s university fees. The average cost of tuition for a three-year course at university is £20,000.
Some parents, 51 per cent in fact, thought the cost was ‘around £3000 a year’. The preferred method of saving is still in a bank or building society. For longer periods of time, equities are a better saving option, say F&C.
There is also a divide on student’s view of obtaining a degree, with 22 per cent saying it was too expensive and you sacrifice three years of prospective employment. On the other hand 70 per cent see university education as a tool that will get them a better employment.
Our view
The reality hits for both parents and students when they actually go to university, it is no longer the ‘free ride’ it used to be. Parents need to plan from an early age of their child to minimise the impact on their financial resources if when their children do go on to higher education.
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