University - planning ahead to help your children with education fees
10th September 2015
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Many parents have the ambition to help their their children better themselves by obtaining a further education degree, but in today’s market, that could cost around fifty to sixty thousand pounds. While it is possible to have loans and grants to help meet this cost, this does mean that young people are starting their working lives with large sums of money owning to the government. This then becomes a hard choice for parents to live with, even though student loans aren’t totally a ‘bad debt’. The only way around this would be for mums and dads to start saving if they wish to remove the option of debt but still put their children through further education.

If you want to give your children the best chance of starting their working career without large arrears, it is never too early to start saving. While it would be possible for some to save the required amount with say just five years to go until the start university, obviously the amount needed to be regularly put away would be a lot smaller if you started saving when your child is primary or nursery school, or even as soon as they are born.

Whilst having an 'end' amount in mind, it's often not just a case of dividing it by the number of years/months you have to reach your goal, after all, you don't know how much fees etc may have increased by the time your child finally reaches university age. Know how best to invest the money you are saving is crucial and this is where the services of a financial planner comes in.  They will be able to guide you through the best options available, taking into account how long it is before the money is required.

If you have 10 years or more until your child will be going to university, this gives much more scope for investing your money and getting a better return than if you left it sitting in the bank, particularly with current interest rates almost non-existent. If there’s only five or so years before university, then the option for playing the markets is greatly reduced and it is much better to invest safely rather than taking a few risks and gambles.

While it is possible to plan ahead by yourself, you increase your chances of getting more from you money with a financial advisor such as Carlton Smith Private Wealth IFA who is well placed to be able to help you save for your child’s university years.

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