Your support helps us to tell the story
Parents saving to support their child through university typically estimate they will need around £40,000, a survey has found.
But on average, they expect to have £11,000 put aside, according to the research from Aviva, released during UK Savings Week (September 9 to 15).
Some have raised the money through long-term general savings or a specific university savings pot.
Around a quarter (26%) of parents plan to cut back on holidays and some plan to take out a loan themselves, the survey found.
More than three-quarters (77%) of parents surveyed are worried about the costs of their child attending university, with 90% indicating their child will be relying on them for financial support.
It is encouraging to see families having early conversations to discuss how they might cover tuition costs, accommodation and other living expenses— Joanne Phillips, Aviva
Nearly nine in 10 (89%) parents with children going to university in the next three years have had a conversation about how to finance their university fees and living expenses, and half of those families (50%) said they have discussed it extensively.
A quarter of parents (27%) surveyed said they are preparing to cover all their child’s costs at university.
Others said income sources such as student loans, trust funds and Junior Isas and part-time student jobs will also help plug financial gaps.
Censuswide surveyed more than 1,000 parents across the UK in August, whose children are aged under 21 and planning to attend university in the next three years.
Despite typically estimating they need £40,000, 40% of parents said they did not know how much university-related costs will amount to in total.
Two-fifths (40%) of parents think their child is most likely to live in university accommodation.
Nearly a quarter (24%) anticipate their child will live at home.
Joanne Phillips, managing director of Aviva Direct Wealth said: “Although saving and paying for university may feel overwhelming given the large sums involved, it is encouraging to see families having early conversations to discuss how they might cover tuition costs, accommodation and other living expenses.
“Tax-efficient options are available for both parents and prospective students to help cover these future costs, including parents paying into their own Isas and Junior Isas.
“Exploring those options earlier can help parents and students to deal with substantial financial pressures when the time comes to attend university.”
