AIBU to think people should put money away for DCs or have a 'college fund'?

[williaminajetfighter]

As it says in the title, is it unreasonable to think people should try to put money away for DCs or have some kind of 'college fund'?

Reason I'm asking is that I was on a thread yesterday where I said I thought it made sense as my parents really drilled this idea into me and I was pretty much laughed at. (My parents told me to wait to have kids until I had some disposable income then ensure I put that disposable income away into DC's savings).

I KNOW that not everyone can afford to put money away and many, many people are incredibly stretched. But am I so wrong in thinking that this is a good idea or is this another middle-class platitude that people laugh at?

I grew up in N America by the way where College costs an absolute fortune and many people start funds early on. It's the only way to be able to afford $40k p.a. tuition fees/living costs. Of course not all DC may want to go to college, but it's good if they had the option. And University aint free in this country any more ('cept Scotland).

But am I enforcing my american assumptions onto british mums? thoughts?

Our priorities atm are paying off our own mortgage and paying in to pensions. The greatest gift you can give a child is your own financial independence, I think. Plus with interest rates so poor, debts cost you more than savings make.

We're prepared that DS will need to have some level of financial support if he chooses to go to uni, but I had student loans etc, and I'm comfortable that if he goes to uni he will take on loans too.

I agree OP, I am from across the pond as well and saving for your children's education from infancy is just standard over there. I think it may be a bit different in the UK since until recently it was free, and even now you don't actually have to pay up front so the onus is not on the parents so much. It is also much easier to get student loans in the UK, whereas certainly in Canada if your parents are not on a lowish income you are generally ineligible.

I'm too busy worrying about my own student debts to think about DC's!

Thanks everyone for your very interesting comments and thanks for not flaming me! It was a legitimate question and I really wanted to understand how others thinking particularly as I have a cultural 'skew'.

For what it's worth I'm still paying off my student loan from my MA in Montreal 15 years ago. Education aint cheap!!

I think it is a reasonable suggestion. A quick calculation suggests if you could afford put £30 a week away every week for 18 years you'd pay off 3 years tuition.

So if you can afford that your DC goes through college debt free.

You don't need to save and pay up front for tuition fees. You can have a non-means-tested loan to cover this.

If your household income is below £25,000 your DC will qualify for a full maintenance grant of around £3,400. If household income is below £42,600, you'll qualify for a maintenance grant on a sliding scale from £3,400 at £25,00 to £0 at £42,600. A maintenance grant may then qualify the student for a bursary provided by the University. In addition, you can take out a maintenance loan, and this will cover your maintenance requirements whilst you study.

However, if your household income is over £42,600, you get no grant and can only take out a standard maintenance loan of around £4,000 to £5,500. A student needs around £8,000 a year in maintenance outside London and it's expected that the parents step in here. Your DC may be able to find a job, but this depends on whether the University will allow this and also whether they're able to actually find a job that fits around their studies.

Anyone who can't afford to save now towards these outgoings when the DCs are at Uni will have to find the cash in due course. Yes, there are many other things you'd like to spend your money on, but if your income is over £42,600, you're going to have to find it sooner or later, so it's very sensible to start budgetting now.

GladbagsGold Most people I know are paying off debts rather than building savings!

I dont know if anyone else remembers, but there was a thread on getting into more debt via using loans to cover early years child care. I was horrified, as it basically epitomises the pull towards credit and debt that means most people cannot afford their own lives, let alone saving for the future.

There was an awareness campaign a while back saying most people are only 1 month away from disaster if their live was derailed by illness or disability. I think it failed as most people dont want to think about that awful fact!

I don't agree with paying for DC's further education.

At 18 they are adults - and should be able to arrange the funding themselves. Loans and part time work.

That's not to say I won't help out but I do not think it is helpful to keep paying for DC once they become of an age when they should be starting to support themselves.

Wen I decided to have a child, one of my non-negotiable criteria was to be able to save money for him or her, not just for university but for their own home in the future, so I don't think you are being unreasonable, others evidently do though.

Of course, that would only work if you have an only child, TSSDNCOP

All the money experts will tell you that University fees shouldn't be seen as a 'loan' in the normal way though - more of a graduate tax. All the advice, (if parents , or others, have a few thousand squirrelled away to give to dc) is NOT to pay the university fees, but to put it towards a deposit on first home, or to spend it on other things you need rather than taking out other loans.

bigkidsdidit I have to disagree with this Also, students working during term is detrimental to outcome. My experience is that all students (possibly excepting those doing medicine) can find the time to work if they have the work ethic, and that it is seen as a really positive thing by employers, that they have. Before the £9K fees were introduced, there was no need to clock up that kind of debt.

Unfortunately, there's an expectation that parents will contribute to their DCs' education post 18. Available funding will only cover maintenance costs of those from low income families. Everyone else needs to be prepared to contribute.

Outstanding American student debt owed to the Government is over $1,000,000,000,000.00
Yup, an excellent thing to aim for
NOT

Savings rates are less than inflation
Half the population earns less than £18,000 a year

Sorry OP but your approach returns us to higher education only being for the rick. THerefore YABU

Back for good - I thought there was data to show it was detrimental, but I may be wrong. I remember hearing it in a meeting once (am a lecturer) but I haven't read it myself do you may be rigt.

It depends on course too- I was hard sciences and had 30 hours a week taught plus reading / writing. Tough to fit in work too without exhausting yourself.

You do what you want in the way of savings for your dc and let others do what they want for their dc.

What I find objectionable is the fact that you want to force your expectations on to me and everyone else and think I should do what you think I should do and for that YABU and no I am not going to be forced by you or anyone else to do something regardless of whether I can afford it or not.

Automatically going to university at no cost to myself was a bad thing. I got student loan, non means tested and my parents paid my tuition fees, around1200 a year at the time.Now I have a useless degree and won't get funding o do another one. If I'd had to work a couple years and save for my own tuition then I may have made better choices. At the same time I wouldn't have wanted my parents to have any say over my path, for them to own my education.

To be fair, my course was taught 9 - 4 most days, and I always worked in paid PT jobs, as well of course as course work, reading etc..

ds is a scientist (with a 'first', as it happens ) and he used to leave home before 8am, get home around 6.30 - 7 (dependent on trains), and still manage to fit in various PT jobs.

I think it depends a lot on your attitude to debt - I would be horrified at building up a debt like that, but I know for some it's 'expected' or normal.

Sorry, that was replying to bigkidsdidit (love your name btw )

But debt like that (well, worse than that) will be normal now unless parents save. Now fees are 9k students can't earn enough, surely

I think British more likely to save up to help their offspring buy property.

Lots of Americans can't afford to save a penny, either, why bright but poor kids don't tend to go to University.

Is it good in principle?... ugh, yet another pressure on parents. As if we didn't have enough expectations heaped on us. My dad (finished high school 1960) talked about friends who were effectively told by their parents to leave home & fund themselves, my dad was so grateful he was able to live at home for cheap rent while he attended community college & UCLA. And now the new middle class thing is to fund education (British seem to prefer private for pre-college age).

The loan system in UK is so generous that I don't see any need for regular savings. If we move to USA it will be a big worry, though. Cannot imagine being able to afford to equally fund all of DC for Uni, so would have to choose.

Saving is always a good idea but I'm guessing not many can. I currently have 3 at university on full granjt and loan with a 4th going in september. Apart from the odd tin of beans we cant contribute so they will have to pay back loans. All 3 have worked either during term time or in the holidays (one is at Oxford so could only work in the holidays) so have managed just fine but they are very frugal and they pay their way when they descend on home like a swarm of locusts
Sure it would have been great to hand them a squillion pounds so they could have been debt free but life didnt work out that way. I'm hoping they'll get decent jobs and bail us out as we dont have pensions ourselves...

I think it's up to parents if they can afford to and if they want to use money in that way.

There were no tuition fees when my ds was born and I must admit, I don't think I noticed when they were introduced. I had no idea what he would do post-16. I see savings as a safeguard against things like sudden expenses such as when your boiler needs replacing, not for education. I think if I had a child now, with the expectation of high tuition fees, I'd just think s/he'll need a student loan.

I don't think the OP is saying that everyone should, rather, that those who do, should not be laughed at or told THEY are unreasonable.

I understand not having the money; I don't understand having the money but choosing NOT to help. At 18, you don't magically become an adult. My birthday is in September so I was an 'adult' for a year when still at school.

I'd hope my DC work part time but if they can't get a job or if they can but it impacts on their work I wold step in and help out, I can't see how that's a bad thing?

but ivykaty what if you have a child who really really wants to be a doctor? Or something that requries a professional degree. I just think that it's fine that you raise your DC the way you want but love alone wont give them the opportunities they may want.

In the end everyone is going to do what they want, but it is interesting to know of other's belief systems. I'm not exactly showing up on your doorstep and telling you that you MUST start saving now. Chill.

talkinpeace Also Univ by that time will cost a lot more than now and students working part-time won't cover things. The US system may be wrong in the debt that's accrued but not saving doesn't solve the problem that Univ may only be for the rich. that would be a bit like cutting off your nose to spite your face...