You have children who are approaching university age, you have spent years putting away a modest amount of money each month to help with the financing of this, but it’s not enough.
So, what can you do?
While wanting the best for your beloved offspring is completely natural, sending them off to university is a bitter pill to swallow, in more ways than one.
First, you have to deal with the prospect of them flying the family coupe for the first time, there are also a myriad of logistics to be tackled and then, of course, there is the inevitable question of funding.
The average cost of studying for a degree in the UK is a staggering £22,000 per year and so a 3-year degree is going to cost somewhere in the region of £66,000. If you have been religiously putting away £100 per month for your child, from the day they were born you would have amassed around 21,600 by the time they reach 19 – so that’s the first year covered (almost).
Broker a Deal
A sensible approach to funding further education for your children may be to come to an agreement. There are several scenarios, but one of the most common is for the parents to pay for the annual tuition fees while the child pays for accommodation and living expenses by taking a job while studying – this works particularly well in the second and third years of a university course, once your child has had time to “settle in”.
If your child falls short in any particular month, then companies like Smart Pig offer cheap, short-term loans they can use to fill the stopgap. Here an important lesson in budgeting for life can also be learned.
If you are in a position to lend the money to your child, then all the better, but it is important that the loan is made on the understanding that results are forthcoming. In addition, don’t give the money in one lump sum, small increments are far more likely to be spent wisely.
As with many things in life, supporting and funding your children through university or any other type of further education will require a balanced and sensible approach were a number of different strategies are used to good effect. And as any parent will tell you this is nothing new, it’s just the same as any other parental responsibility – a labor of love!