Three-quarters of parents are feeling anxious about the financial burden of sending their children to university, according to a recent survey. The research, conducted by Aviva during UK Savings Week, unveiled that parents are estimating around £40,000 to support their child's university education. However, the study disclosed that on average, parents only have £11,000 saved up.
Financial Worries
The survey found that 77% of parents are worried about the costs associated with their child's university education, with a staggering 90% acknowledging that their child will heavily rely on them for financial assistance. Some parents have resorted to using long-term savings or establishing a separate university fund to meet these expenses. Notably, a significant 26% of parents are considering cutting back on holidays, while others are contemplating taking out loans to cover their child's university costs.
Financial Planning
It is commendable to note that nearly 89% of parents with university-bound children have started discussing financial planning and ways to fund their child's education. Half of these families have had in-depth conversations regarding the same. A quarter of parents expressed their intention to fully finance their child's university education.
Future Expense Concerns
Despite the £40,000 estimated cost, 40% of parents seem uncertain about the total sum of university-related expenses. Some believe that student loans, trust funds, Junior Isas, and part-time jobs will contribute towards bridging these financial gaps. While 40% of parents anticipate their child living in university accommodation, 24% expect their child to stay at home during their studies.
Expert Insight
Joanne Phillips, managing director of Aviva Direct Wealth, emphasized the importance of early financial planning for university costs. She highlighted the availability of tax-efficient options for parents and students alike, such as investing in Isas and Junior Isas. Exploring these avenues sooner rather than later can alleviate the financial strain associated with higher education.