Active discussions

Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

AIBU to wonder why the UK doesn't have a culture of saving for kids' University?

323 replies

windygallows · 05/07/2016 21:15

I'm originally from North America where 'saving for College/University' is a big part of the culture, in fact it's quite normal for parents to take a college fund out just after baby is born. And understandably - University is really expensive in the US eg (tuition + living expenses of $30,000 pa).

I've had both my children in the UK (have lived here for 20 years) and do my best to put a bit of money into a college fund every month, even if its a stretch. When I mentioned this to a few friends they looked at me with amusement and asked 'why?' I've casually asked around if others are saving for college - some have put money aside but haven't specifically said it's for higher education. I haven't pried, just asked a few people so don't have a full picture.

However I'm finding it surprising that this isn't more of a concern for parents. In the UK University isn't 'free' anymore (eg. through grants), tuition is very pricey now, grants are rarely available, and student loans are shrinking. But it just seems like this hasn't been absorbed by many parents. Or maybe it has and I just don't know!

Before flaming me - I'm aware not everyone can afford to put money/savings away and I'm also aware that not everyone can or wants to go to University, so no need to debate that. I'm just questioning the seeming obliviousness to the dramatic change in the cost of University here.

AIBU?

OP posts:
scaryteacher · 07/07/2016 17:34

because the terms of the loan are so favourable it's hardly a loan at all If ds needed a loan it would still be cheaper for me to extend my mortgage, than for him to have a student loan. If you are having 3.9% added from day 1, and when the interest is compounded, then why bother having a loan if you don't have to do so?

Why also assume that the Ts&Cs can't be changed at the whim of the government?

Want2bSupermum · 07/07/2016 17:49

I agree that a university education is not a necessity like it is in the US. You can get a good job/ train in a vocation such as accounting, law or engineering without a degree whereas in the US it's not possible.

Also, I think in the US there is a status symbol attached to putting your children through college. A 4 year bachelor program at a private university will set you back $250k in tuition alone for each child. DHs boss will finish this year paying for the 3 of his kids. It's become a status symbol for him that his kids have had their college paid for in full.

Thankfully we have Canadian citizenship through me and that's where our DC will go! It's $6k a year for fees for citizens. They also have 5 year coop programs which means you graduate with no debt if you are careful with your money.

supermoonshine · 07/07/2016 18:08

Want2bSupermum how much are fees for non Canadian citizens?

I lived in the US when dcs were little and yes, everyone had a college fund. Some had even bought houses which they were renting but would sell in the future to pay for college. I think we've all been told what a good deal the UK loans are and we have believed them when really we shouldn't have. We are saving for our kids though as the thought of them having huge debts so young makes me nervous

IronWoman · 07/07/2016 18:08

As a single parent I had always saved for my DS's higher education since he was a baby. Unfortunately, due to family issues, I had to stop work.

The Job Centre, told me i couldn't claim and had to live off my son's savings until they were under £6K, which i had to do.

As a student myself now, it is a worrying prospect to have a massive debt - and i doubt my DS will want to go to university now anyway.

Want2bSupermum · 07/07/2016 18:35

supermoon The fees for non citizens is very similiar to the US but you should speak to them because often they offer a scholarship that covers the excess above what a Canadian citizen pays. They have to price this way to prevent an overrun of Americans taking over their programs.

If we were in the UK I would be looking closely at Canadian schools. I would also not be so keen on my kids taking out student loans. I would prefer they borrow the money from me because the interest rates are high and I had such an awful experience with the vortex that is known as the student loan company.

Honeybadger83 · 07/07/2016 18:58

I'm putting by an amount every month for my son, be it towards university, driving lessons and a first car, or a deposit on a house. I don't know how much it'll be by the time he is of age, but I won't be telling him about it until he's 17/18. I don't want him relying too heavily on it.

Notmuchtosay1 · 07/07/2016 19:26

I haven't read all the replies so this may have been said. I watched money saving expert Martin Lewis a while back on gmtv when a mum phoned in to ask if she should pay her sons university fees. He said, do not pay your child's university fees. He said help them with living costs etc but never the fees. He said they only have to pay them back if they earn over a certain amount. He said a lot of students don't earn over that amount and don't pay it back. Only what I heard him say. So don't shout if I'm wrong!

scaryteacher · 07/07/2016 19:32

The problem is that the govt may change the rules and decide that they do want them paid back, and at a faster rate than now. Thus, as we can afford to put ds through university without loans, we are doing so..and we have the added benefit of there being no IHT implications with this. Martin Lewis doesn't take into account that govt policy can and does change.

ohgoshIdontknow · 07/07/2016 19:40

Saving is a false economy IMO. Interest rates are so low it doesn't make sense.

We have invested in property instead - currently totally broke as a result, but I hope it'll be worth it in the end. And that's not just for uni, but whatever future costs might crop up, uni or not.

Kennington · 07/07/2016 19:45

I think plenty do put aside savings for their children. They probably just don't talk about it.

CEOD · 07/07/2016 19:50

Maybe in the future fewer people will leave home to study at university. Maybe the trend will go, like in other European countries, to stay at home with the folks until Uni is finished and you find your feet in the workplace.

Maybe we would like our kids to work for it themselves, if its something they really want, and not give them everything handed on a silver platter, which they might not even appreciate, if it isn't their sweat, blood and tears behind it but ours.

sarahb1982 · 07/07/2016 20:00

As Martin Lewis (money saving expert) is always saying, it's absolute madness for parents to give their grown up children money for university, accommodation etc
As others have pointed out, this is what student loans are for.
It would never have crossed my mind to ask my parents for money.

ForalltheSaints · 07/07/2016 20:01

We have lost any culture of saving at all I think.

sarahb1982 · 07/07/2016 20:02

Sorry, Notmuchtosay - just realised you said pretty much the same as me!

scaryteacher · 07/07/2016 20:06

If ds had loans, we would still have to give him money, as the maintenance loan is calculated on parental income, so he would get the minimum, which would not have covered his hall fees last year. It's not as simple as Martin lewis likes to make out.

Secondly, if a parent is willing and able to support their child through university, why shouldn't they do so?

IfNotNowThenWhenever · 07/07/2016 20:14

I have started recently, but may only have 8 years to get anything much together. My son also has had a trust fund thingy since birth, which I add to when I can. I'm not expecting to pay fees upfront but would like to be able to help with living costs. It's such a lot of debt otherwise.

MyFriendsCallMeOh · 07/07/2016 20:22

By the time my kids go to uni, I bet that Scottish students will pay fees. I work for a Scottish uni and the current system is hugely unsustainable.

Alasalas2 · 07/07/2016 20:56

This reply has been deleted

Message withdrawn at poster's request.

elQuintoConyo · 07/07/2016 21:09

We save what we can. Sometimes we have to dip into it - has anyone seen Up? At the beginning when their savings are regularly diminished by needing a new roof, a new car...etc.

DS is absolutely beautiful so we don't have to worry about uni fees to be a model Grin

Want2bSupermum · 07/07/2016 21:25

Saving for college should come last after saving for retirement, rainy day fund and housing. You can borrow to buy a home or an education. You can't borrow to find your retirement.

Postchildrenpregranny · 07/07/2016 23:02

We paid all fees and living expenses for two DCs from income (but had our kids late in life and 4years apart so had only 1 at university at a time and we were quite high earners by then )This is before fees went up to £9000 pa though .Their grandmother also helped .They both took out loans of £10,000-the equivalent of their fees for three years .DC 1lived on it in London while doing unpaid interning for 6 months Dc2put it towards a deposit for a flat
And yes I know(and so do they )that my DC s are hugely privileged before anyone comments. They would not have got anything from the state as we earned too much But it was our choice to prioritise their graduating without huge debts .I have friends in a similar income bracket who would claim they couldnt afford to fund university .We all make choices .
The problem is in the early years of having children people tend to be earning less paying hefty mortgages etc So regular savings into a college fund would be hard

happybee1 · 07/07/2016 23:55

My eldest DC is about to go to uni and will get grants/loans for tuition fees and board. If you look on the Martin Lewis website he explains why it's best to do it this way as you only pay back after you earn over a certain amount and after so many years it is written off.
Everybody I know who has dc's at uni has been able to get grants/loans. My DC has had communications with Oxford and has been advised that in actual fact there is more funding/burseries there.
I imagine our system is different from that in N America but I don't know much about the system there.

nagynolonger · 08/07/2016 06:18

Grants were reintroduced for poorer students in England as a 'sweetener' when tuition fees went up to £9000 per year. The tory government stopped them again has soon has they were re elected. I'm sure no one in England gets a grant now.

The other big worry for me is that any government can change the rules and interest rates at anytime.

Girlgonewild · 08/07/2016 07:43

It depends on the children too. In our family most people earn a lot and my older two are already 40% tax payers in their 20s, up to or over £100k a year income and WOULD have been repaying the loans so the fact they graduated with no debt was sensible in our case (and I could afford it as income).Also in more general terms on the Martin Lewis points it is not bad from a tax point of view to give money to your children (as long as that does not stop them working hard) as if I die the state takes 40% of everything in inheritance tax. If I've already given it to the children decades before then we save massive massive amounts of inheritance tax. Passing down money to the next generation is not a bad thing at all from a tax point of view. Also I hate debt. I understand interest rates are very very low but psychologically to have that millstone hanging over you of all that debt at such a young age and it does affect your ability to take out a mortgage on a house etc is not great. The rules might change later on the loans.

However I accept it is a gamble - if you bring up daughters to keep house for example after 2 or 3 years of work after university then you are silly to pay for them at university as they will be part time low earners or not working in many cases all their lives never have to pay back loans. If they know they will be doing a low paid job forever or work on the family farm etc they will not have to pay it back either.

StillMedusa · 08/07/2016 08:02

Someone upthread said that those who go to Uni to become doctors are usually from privately educated backgounds and therefore well off.
Not my experience from my DD1's friends.. an equal proportion of state and private kids.
DD1 graduated as a doctor with at least 60K debt a year ago.. if we had had that sort of money we wouldn't still be paying a mortgage!!!!
And then there is DD2.. now a nurse.. she was lucky to catch the last of the bursaries so has only a few K debt.
Both worked through Uni, we supplied food money and any extras needed but we are both low earners and there is no way we could ever have saved for a college fund.
I don't think the UK and USA systems are comparable for a whole heap of reasons.. our housing, our loans systems, the lot.
What does grate is the 'free in Scotland, reduced in Wales'