To get increasingly annoyed at the mention of 'Uni funds' on here?

[WincyWillis]

Am I?

Not a thread about a thread as such but I've seen it mentioned several times on here recently, in an "Everybody must start a uni fund for their child or they're a terrible parent" way. Firstly, not everyone's children want to or have the ability to got Uni. Secondly, many people don't have any spare money at the end of each month and can barely cover bills, let alone save towards a Uni fund. Also, it's perfectly possible for a child to fund his/herself through Uni, as my friend's 3 teenage children are currently doing. There is no need for Mummy and Daddy to have a Uni fund.

And the phrase makes my teeth itch!

[Tressy]

'above' not about.

[lunar1]

Not read all the reply's but this really feels like a middle class bashing thread. I hope that my boys go to uni and if they do DH and I will be expected to pay towards it as we earn over the threshold.

Obviously they are free to make their own choices but the money i am putting away is not for frivolous spending, it is an investment. I may use it to help them with a deposit for a house.

We work hard as a family and are lucky enough to have the qualifications to earn good wages, what is wrong with saving to help our boys achieve the same if that is what they want.

[perfectstorm]

I think saving for uni is a loving and responsible thing for a parent to do, really. I'm always rather horrified to see a parent justifying their child's struggling without state or parental support on the grounds that "students are meant to be poor." Being poor is horrible. There is no glamour to poverty unless retrospectively remembered from a warm house with a full stomach and the ability to pay the gas bill.

Whether we like it or not, many won't be able to go to university in future unless parents help them with it. If you can, and you plan ahead, good for you. As for it implying an assumption they will go - it's hardly an evil assumption, is it? That your child will work hard and be sufficiently bright to want to stay in education until 21 or 22? And saving towards that goal is a sacrifice, not a vanity. After all, you can't suddenly magic up those saved thousands overnight if they do go, not if you needed to save to begin with.

Think it's a lovely thing to do.

[SCOTCHandWRY]

A perfect post from PERFECTSTORM. Exactly this.

As for the word Uni.... even in the far north of Scotland, that was coming into widespread use when I was a student 20 years ago... I always thought the traditional English/British abbreviation was hideous - VARSITY, ugly word, I'll stick with Uni

[ICBINEG]

jeffing hell...

thanks for the money saving expert links guys!

I just spent an increasingly alarming 10 minutes learning that paying your kids uni fees up front is a TERRIBLE financial idea....



seriously....the next time you hear someone talking about a uni fund you need to send them direct to money saving expert for re-education....

[maddening]

Of course we should though but in reality we SHOULD be doing lots of things that aren't always possible - money saved for retirement, money saved for ill health/periods of unemployment, getting fit etc where life gets in the way.

It is hard to gauge what education and health system we will have in 20 years and I doubt there will be any state pension etc

[LesleyPumpshaft]

Single parents should be saving maintenance towards a Uni Fund

Hmm, because all single parents actually get maintenance don't they.

[ReallyTired]

If my children don't want to go to uni then maybe they will want a desposit for a house or a car. We put by £50 per month for each of our two children. I hope it will pay for the parental contribution. It won't be a fortune at 18, but I hope it helps them.

Whats wrong with a bit of forward financial planning?

[OldCatLady]

What a load of crap!!

My parents earned over the threshold so I got the absolute minimum loans, but they will always cover your FULL tuition fees, and get up to a certain amount for housing which depends where you are, and the uni will help you find housing within your budget. I had absolutely no help from my parents, and had to get a part time job to pay for food, expenses etc. And you know what, it really pisses me off that your parents are 'expected' to help if they earn over a certain amount when number of dependants, mortgage, bills, debt etc is not taken into account. But if you're poor enough you get money GIVEN to you (not a loan) by the government which means you don't even need to get a job.

[OldCatLady]

By the way I'm not saying 'you must not save for their future' I'm just saying you don't need to if you don't want to/can't afford it

[SCOTCHandWRY]

Thu 04-Oct-12 13:23:27
jeffing hell...

thanks for the money saving expert links guys!

I just spent an increasingly alarming 10 minutes learning that paying your kids uni fees up front is a TERRIBLE financial idea....

I'm not sure what you mean by this? If you mean course fee loans (typically £9000pa), that's not what most people on here are talking about... it's Maintinence loans, as these are means tested.

All students can get coarse fee loans (though in the future, who knows what will happen?).
House hold income above a certain limit (around £35k), means minimum loan only, and it won't even cover the cost of halls... parents are expected to contribute the rest of the living costs - it;s not a case of wanting to pay instead of borrowing the money, parents are HAVING to pay!

[wordfactory]

My view on course fees is that the cash is better off in my pocket for the three year duration (and perhaps a few years thereafter if DC go travelling or continue in education).

Paying up front when you don't need to, seems silly, whilst there are no downsides to repayment in the future.

However, loans for course fees won't put a roof over your DC's heads. Or clothe and feed them. This cash has to come from somewhere.

[DontmindifIdo]

OldCatLady - at the moment, that is the situation, however, DS is preschool. Since I went to university, fees have come in at £1k pa which we were assured at the time they would only rise with inflation, and maintenance grants have gone. The loans have changed from flat amounts anyone can borrow, that had to be paid back regardless of what you earned (only the speed you paid it back varied), now fees have gone up to £9k, loans will depend on what your parents earn and how much you pay back will depend on what you earn. That has all happened in less than 20 years.

It will be over 15 years before DS goes to uni (if he goes)- I really can't make financial decisions now on the assumption this most recent change is the final one. If your DC are going to uni next year, then the advise not to pay upfront might be a good one, but if your DCs are going any later than that, it doesn't follow that the system will be the same.

I am fairly certain one way or another way, it will be more expensive when DS goes to uni. It might be the case he can borrow all the money needed for fees and living costs, it might be the case that those loans can be paid back in a flexible way that doesn't put a massive strain on his ability to save for a home of his own/live comfortably on his wage though his 20/30s. However it might not. If we start to save now, then if we are pleasently surprised by the system when he gets to 18/19, then I'll buy a shed load of designer handbags and shoes with the money... I just have a horrible feeling I'm going to continue to tote round ugly cheap old handbags in my 50s and there's going to be a lot of young adults who will be limited in their uni choices by the size of the fund the parents have or don't have for them.

[adeucalione]

ScotchandWry -

Actually you need a household income of over £62.5k before you are only entitled to the minimum loan (of £3575 pa).

Anyone with a household income of £35k would be entitled to £6216 in maintenance loans and grants.

The maximum entitlement (household income less than £25k) is £7125.

The average cost of halls of residence is £4035 whilst the average cost of a room in a student flatshare is £345pm.

[Fishwife1949]

WincyWillis but thats mad how can you know at 1 or 2 years old which is when most start saveing if they will go to uni or not



I started a savings account for my child from birth for uni but now at 13 i cann see its not going that route so it might be for wedding or car or deposit on flat(chance will be a fine thing) but there was no way for me to tell at 1 years old and if i hadnt saved and he turned out to be a savont then i would be fucked

[DontmindifIdo]

Fishwife - agree - if you start when they are babies, the percentage of your monthly income you have to set aside is far less and therefore less painful to find than if you start when they are 13. I see no reason to tell DS i've got a uni fund before he's at an age to start thinking about it.

[MrsTerryPratchett]

Saving early means that the wonders of compound interest work for you. I know interest rates are in the toilet right now but who knows what will happen?Uni funds (agree it's a crappy phrase) are like condoms. I'd rather have one and not need it than need one and not have it.

[ICBINEG]

erm sorry perhaps I misunderstood, I thought a uni fund was intended to pay tuition fees when the time came...

if so then by all means save the money but don't actually pay the fees...coz that would be a big financial mistake....

[SDTGisAnEvilWolefGenius]

I am not a huge fan of the word 'uni' - but I damn well wish that we had started a savings plan for the boys when they were little. I foolishly assumed that the land wouldn't be means tested, and we only found out a year ago that our dses would only get the minimum maintenance loan, so we would have to find £48K+ to cover their university maintenance. Oh, and as ds1 has just started at university, we had a year to sort this out.

The rules here in Scotland change next year, and they will get a minimum loan of £4.5K per year - this doesn't make things really any easier - it just means that there will no longer be a point where there is nothing in the account to give the dses. Oh, and ds2 has broken it to us that degrees in Scotland are mostly 4 years long - so that is an extra £4.5K we will have to find for him, and for ds3 if he goes to a Scottish university, as he is currently planning. Then a second bombshell - the course that ds2wants to do is actually 5 years long - meaning an extra £13.5K in total that we will have to find over the next 6 years.

[porcamiseria]

yanbu

BUT, I really want my kids to go Uni

an earn shit loads of money afterwards

[Fishwife1949]

I think most dont want there kids to be in debt and the laon only covers the course you might need to pay for housing and some cousres need alot of equipment

[complexnumber]

*What happened to 'invitation', quotation' and 'advertisement'? If people offer me a quote, I say, "No, I'd prefer to have a quotation." Younger people don't even know that they are short versions of the correct words.

[amothersplaceisinthewrong]

The alternative to the "University fund" is the student working throughout university to make up the shortfall. The bottom line is that most students can't borrow the whole amount needed for living expenses at unviersity and so have to naje the shortfall somehow.

My view is that those who have to work just to eat and live are disadvantaged, so what parent would not pay if they were able to. I

I wish we could send less and fund them properly.

[ChazsBrilliantAttitude]

I agree with Don'tMind

I am doubtful that the system is going suddenly get more generous in funding students I suspect it might get less so. My oldest child in 9 and I started saving relatively small amounts several years ago. If they don't go on to higher education then it may help them to get a start in life in another way or it may go to fund DH & I being able to retire a year or two earlier.

[SDTGisAnEvilWolefGenius]

"Omnibus - from the Greek, meaning to or for, by, with, or from everybody - which I think is very appropriate, actually" - Flanders and Swan.