When you have children and start a family, the expenses are endless. Whether you are buying them nappies as a baby or the latest pair of trainers when they are a teen, there will always be something you need to buy for them.
However, you should always save for your child’s future especially if they are considering a university degree. This can be expensive and with the costs of tuition fees, accommodation, and living costs, sending your child to university can get pricey.
Here is a guide of how much you should consider putting aside for your child’s education and how you would go about it.
Make a List of Expenses
There are many different expenses that soon add up when it comes to your child’s education. Tuition fees in the UK are currently £9,000 a year, and that is before your child has somewhere to live or money for living costs.
While there are student loans available, you may want to focus on setting money aside for accommodation. To do this, you may want to have a look around at the cost of student accommodation and come up with an estimate of how much their living arrangements are likely to cost them during a three-year degree.
For example, you can check out the student accommodation in Birmingham that is provided by Collegiate. Their high end student accommodation is in the heart of Birmingham and would be perfect for your teen if they wanted to move to the city for university. You can check out their website for rental prices, so you have an idea of how much it would cost. It is difficult to know how much to save up if you don’t know how much things cost.
Set a Future Goal
Once you have a rough estimate of some of the outgoings that your teen’s education would require, you can set a future goal of how much you want to save up. You may find that you can’t afford to cover the whole cost of their education, but you want to try to save up a few thousand pounds to give them a helping hand later in life.
Arrange a Monthly Contribution
After setting this future goal, you should work out how many years you have until your child becomes an adult and decide how much money you can afford to put aside each month. By setting up a monthly bank transfer into a savings account, you will get used to the money leaving your current account.
There is no set fee that you should save up towards your child’s education, and instead, you should put aside only the money you can afford. While setting a monthly contribution is a good idea, make sure that you adjust this contribution if you later find that you can afford it.