University fees rising will affect parents as well as children
When the news broke that Universities are raising their fees to £9000 a year, sweat began to trickle down the forehead's of parents all over the UK - what would happen with their children's futures?
It seems that 23 per cent of you intend to encourage your children to choose a lower charging university - but with even some small-town universities planning to increase fees, like Edgehill, where will they be able to go?
The financial strain is clear, with 49 per cent now expecting to graduate with over £20,000 worth of debt and 13 per cent think they will accumlate over £30,000.
As university costs seem to be mounting, those who are actually planning to go are warming up to the idea of living with parents during term-time to avoid debt.
Annabel Brodie-Smith, Commications Director of Association of Investment Companies, says: "With tuition fees adding to the already considerable expense of university, families are clearly looking at ways to save money. Not surprisingly parents feeling the pinch are keen for their children to live at home and to attend lower cost universities. For young people, living at home will be a constraint on enjoying some of the best years of their life but a way of reducing the financial burden."
Maybe it's up to you to ensure that your children are made aware of the possibility of living at home and the benefits that they can gain from it. Plus, don't forget to ensure that they'll have their own space and will gain some independence - something that they're looking for from attending univeristy.
The survey also found that two thirds of parents either do, or plan to contribute financialy to help their child finance univeristy; either by saving, selling their financial investments or selling their shares.
Annabel continues: "If you possibly can start saving for your children for the long-term you can give them a financial advantage in life. The sooner you start investing for your children, the better chance of greater returns. Investment companies offer parents a useful way of saving as they can access the long-term potential of the stock market. Investment companies invest in a variety of companies on your behalf, spreading your investment risk and they are available from as little as £50 a month, or £250 lump sum. If you had invested £50 a month in the average investment company over the last 18 years you would now have nearly £24,000."
Femalefirst Taryn Davies
Tagged in Parenting University