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

[windygallows]

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?

What if they dont learn to budget in their means?

What if they borrow everything they can and max out more than one overdraft.

Will you pay it off?

I've regular savings plans for my children and they haven't even gone to school yet they're that young. I think people who can save generally do, not just for university but to help them get onto the property ladder etc. There will always be some people who could save but just don't however many people just aren't as lucky as me. People in my situation don't talk about it as often because it doesn't present any problems that require advice and it makes you sound a bit smug/unpleasant banging on how financially sorted you are when others around you are suffering. I think that you've seen lots of threads about financial hardship or have overheard conversations and it's given you a skewed view of what's actually going on.

We saved for our DCs Uni fees but there were strings attached which the kids always knew about. DSS didn't go to Uni but other 2 did.

No way would I have been helping fund a degree that was just an excuse to go to Uni. It had to be a good degree that would lead them to good jobs (and that worked, both went to RG Unis and it led to a worthwhile career path )

DCs had to take student loans (not far off being paid back) We would fund living costs.or accommodation.

DCs had to have jobs alongside school/Uni to earn some extra money. Even if it was only a few hours a week. I just know that those few hours a week wouldn't have been spent studying, so they had to take out some student drinking party time.... and work. They still had time to chill and study hard.

I think it's effing unfair that Scotland/Wales have reduced or no fees. Just had to add that. It's always rankled.

Don't save because I can afford it out of my income in the years they go. It is similar to their school fees.

It will cost approximately 153,000 for all of mine to attend uni. I don't have that knocking about. That's also 54,000 more than it was a few years ago, and 153,000 more than it was when I went to university. I strongly believe that education is a right and not a privilege. It is still beyond me that successive governments wish to charge our children to learn to become Doctors and Teachers.

If you can save the equivalent, you are better off presenting them with a 30k house deposit in their 20s. It doesn't count as debt when you apply for a mortgage and most will never pay it all back. All money advisory services tell you it's the last thing to pay off with a cash windfall. Also... It really ought to be the adult who benefits from the degree that pays it off in my opinion. I say this as someone still paying off mine!

Why is it beyond you that govts think they should pay.

A large proportion of medical school applicants went to private school suggesting their family can fund their uni.

Also see how much GPs and Consultants earn?

The reward is big in the end.

It is still beyond me that successive governments wish to charge our children to learn to become Doctors and Teachers.

It is beyond me that the majority of the population votes for low taxation, providing insufficient tax revenue to fund education.

'A large proportion of medical school applicants went to private school suggesting their family can fund their uni.'

Can you not see the problem with that ? It just means that the rich go to university to become doctors and the poor stay home in the dirt.
When you grow up poor the amount of money a loan and your two jobs will need looks insurmountable.

I think it's because until very recently tuition was free.

We are in Scotland where tuition is still free, but are very aware that this could change, and that one of our kids could still opt for a course in other parts of the UK (or even overseas). We save as much as we can generally, not specifically for Uni, but the money will be there if needed.

I have to say, we are Scottish, where tuition is free, but we still set up a trust fund for each of our daughters at birth, to mature at 18 into which we paid each month. At 18, they could choose to use it to help with living costs at Uni, deposit for a flat, travel, set up self employed- whatever.

We were far from wealthy when the kids were wee, but always managed a minimum monthly payment, topped up where we could. I think we did this because we knew we couldn't afford to help our girls otherwise - perhaps the wealthier are more confident they will be able to afford to help out as necessary?

The UK and the UK are two utterly different cultures. In the UK, whatever the complaints about the NHS, there is no culture of having to pay for your own healthcare.

I will never forget the first time I visited the US in the 90s - so long before Obamacare - staying with a friend who was poor and without health insurance. While I was there, she fell down the stairs and splintered her knee and I called an ambulance. The first A and E she arrived at - screaming, bloody, with large pieces of bone sticking out through her skin - at wouldn't treat her because she had no insurance, and she was sent somewhere else about 30 miles away. And ended up with a debt she was paying off years and years later.

When a few years later, I got a Green card and went to live in Massachusetts, I worked in a hotel. I was astounded by people I met there who worked in accounts/reservations, and who were working several jobs in order to fund their children's university fees.

One woman in particular I remember worked, say 8.30 to 5.30 or 6 at the hotel five or six days a week, went home to see her young children for an hour or so, then drove an hour to a sort of medical call centre where she did another eight hour stint answering out of hours phone for a group of medical practices, dozing on a chair between calls. Then drove an hour home after her shift, took a nap, had a shower, and went back to the hotel for a working day. So she had two full-time jobs, for university fees for her children, which she and others I met thought was completely normal. American dream etc etc.

Because even atbtodays prices it would cost 27k in fees alone . Lol at me saving 27k

I was from an extremely poor family.

I found a way to get into my profession.

I think because for many they can only just afford the essentials with the cost of living. To support a child into adulthood is too much to ask for those struggling to get by.

I just save my money, and at the end if I decide to help out kids with uni, or houses I might.

I also begrudge the fact that maintenance loans are means tested and it is expected that me and my partner will automatically cover any shortfall, inspite of having our own responsibilities to pay for. Don't see how the situation of one set of adults is relevant to that of an independant adult who's chosing to go to university.

I've been paying school fees for 7 years so funding £9000 pa seems like a breeze.

I agree with Machikoro, people in the UK who are in a position to pay for the child's university tend to have a lot of options on where to source the funds from. For instance if you had paid off your mortgage you could remortgage a small amount that could be used to pay for your child's tuition fees. Also at that stage in life they may have the disposable income to pay the tuition directly from regular savings.

Most people on lower incomes would opt for the option of taking out student loans as the repayments are linked to salary.

At the time the fees went up, we were caught out as we hadn't been saving for that much cost, but dh retied from one career, and got another job which means we can fund university in full.

We choose to do this as I don't think the current T&Cs will stay as they are on the loans for ever, the interest varies annually, and if some of the student loan book has been sold off, who is to say this won't happen again? We can afford it, so are doing it.

As ds is an only he will get the lot eventually anyway; and this way is tax efficient as there are no IHT implications at all whilst you are paying for education. If you give money for a house deposit, then there are, as you have to survive so many years from the date of the gift. Effectively, ds is getting some of his inheritance early.

I would far rather he didn't come out of university with a huge debt hanging around his neck.

We've saved for our DC to go to Uni since they were small. DS didn't go and has a good well paid job and no debts so we will give it him for a house deposit instead. DD is still doing GCSE and not sure what she wants to do yet but looking at a more academic options atm. The money will be there whatever she chooses - not for fees though - the other stuff.

Because most parents who did go to uni had both no fees and maintenance grants from the government? I went in 1993 which was the first year you could take a loan out, but it was complex to do so (had to visit a certain staff member between 8 and 9am on alternate Tuesdays) - in my second year many of us did, but having worked on my gap year I graduated without having spent the money (which then went to a MSc).

Even once maintenance grants were replaced by loans, fees only came in later. Back then, any parents who could save for their children would put the money towards driving lessons or a deposit for rent or buying a house. Most ended up putting the money to their rocketing 15-19% mortgages.

Though it's no way all Americans who go to college let alone have parents pay fees for them - about 3/4 of my large US family have degrees but they've all gone to State or community college then State, often after a few years of work, unless they've got a significant scholarship somewhere else. Their parents would contribute to a car (an essential) and try to assist with medical bills, but at least two cousins will be in medical debt for decades and two others live in trailers, both professionals, as they cant afford housing where they've found jobs. Plenty of free houses in my grandparents' home town, though - only one family left living there.

And actually if you look at advice online it's not always worth paying the fees since the threshold has now gone up and you only start paying back once earning 21k there are people who will never actually pay the money back and what they do pay each month is minimal until you get into really big salaries .

So imagine instead the parents saved money which helped dc buy a house etc much better way of doing it

We're expecting our first child in the next couple of weeks and will likely have a savings account for him that we'll put small amounts in but it won't be for university specifically. We live in Scotland but I'm under no illusions that fees will still be covered in 18 years time. Our mortgage will be paid off in 19 years so we will have a lot more available money then to help out and our child(ren) will be more than welcome to live at home while studying - there are plenty of good colleges and universities a 15/20 minute train journey away.

We live commuting distance to four universities. If our dcs wish to go to Uni they can live rent free with us and commute to one of these four. They could move out and into Halls but that would be their choice and subsequently their bills to pay.

Am I right in thinking in North America college is further education with someone Majoring in their interested field?

It works differently here. You only study the subject you enrol for and, consequently, have lots of free time (most courses anyways) to work in and around your lectures.

Because the 'kids' will be adults by the time they leave college, which is free, and can pay for their own tuition if they want to go to uni. I was 20 when I left college and at that age I would not have asked my parents to pay for uni. If I wanted to go I would have paid for it myself.