Education plans are vital in supporting your children through university
If you’ve got young children who haven’t even started school yet, it can seem ridiculous to worry about how you’ll support them through university. But with higher education institutions in the UK currently charging up to £9,000 a year in fees, who’s to say how much your little ones will be paying by the time they become undergraduates?
The fact is that they could end up owing tens of thousands once they’ve achieved letters after their name – setting them back hugely when they enter the workplace.
So, as a parent, what should you be doing to ensure your offspring aren’t saddled with huge debts just for getting a degree? The simple answer is to start saving as soon as possible; in fact, the majority of parents in the US set up a college fund soon after their children are born. Having more time in which to save means you won’t have to put as much money aside each month, making it more manageable for you in the long run.
It’s important to note that education fees have historically risen faster than inflation, at an average rate of 5 per cent per annum, so make sure you factor this into your savings plan. You will also need to think about the costs of your child living away from home as well as the university fees themselves, although they should be able to make up a small shortfall through part-time working while studying and during holidays. There are many offshore savings accounts that will give you a good return on your money by the time your child goes to university.
With interest rates remaining low for the foreseeable future, it is also worth considering putting some of your money into stock market investments. These are historically a better earner than savings accounts – although always be aware that investing in this way comes with a risk factor.
As with all savings options, BlueStar AMG can guide you in the right direction, ensuring that your offspring will be financially secure by the time they head off to university.