We all have aspirations for our children which for many, includes seeing them go to university. Bear in mind this is the time of year you could be touring the UK with said child in tow looking at where they want to go. However, the harsh realities of the costs involved soon focus the mind, especially when parents face having two, or even three children attending university at the same time!
If you live in the Isle of Man and want your kids to attend a UK university (local options are available), this means not only paying higher travel costs, but also please note Manx students are often treated as ‘international’ students, resulting in higher, uncapped fees.
You might be interested to learn the costs of a modern-day university education now, so, here is some research to give you an estimation for three universities in Northwest England which were popular choices for past local students. These are for the least expensive degrees available; and if you’re wondering, yes, medical or dental degrees cost more than that.
For one child’s total fees:
- Manchester University – £27,000 per year including living expenses. This requires £233 to be saved per month from birth to 18, assuming you achieve an annual return of 5% p.a.
- Lancaster University and Liverpool Hope – both charge £20,000 per year including living expenses. This requires £175 to be saved per month from birth to 18, again assuming an annual return of 5% pa. However, Lancaster charges the same fees for Manx and UK students (this could change).
The figures are eye watering, and it’s not helped by government grants now being limited and families facing so many other competing financial priorities, including parents trying to save for your own retirement or even facing looking after your parents in later life.
Early planning is essential and if you want your kids to avoid leaving Uni with the dreaded student loans and credit card debts you may want to include a combination of:
- Looking to have the mortgage paid off (or significantly reduced) by the time the first child reaches 18
- Do nothing now and paying for all, or part of the fees, from your salary (and your previously enjoyed ‘disposable income’) when the time eventually comes
- Saving regularly towards it sometime between now and then
- Hoping/praying/insisting that the child will work part time either while they are away and/or when they come back during the holiday periods.
It comes down to having a plan in place and it being put into action as early as possible. Without one, it could be a matter of waiting for the proverbial money tree to grow in the back garden, or in the real world, delaying your own retirement/debt reduction, etc.
If you are ‘plan-less’ or simply want a sense check and would like to have a free, no obligation meeting with one of the three members of the Thornton team qualified to Chartered Financial Planner level, please drop us an e-mail or give us a call, we would love to hear from you – 01624 660220 / firstname.lastname@example.org
At the very least from this meeting, we hope to be able to point you in the right direction to help you and your children have the future you really want.