What allowance to give DD when starting her degree in September

[Londonmummy66]

I'm not really sure what to give DD when she starts in September. She has a scholarship so her course fees are only £300 a term. As she is in London her rent is nearly £200 a week. DH and I had originally planned to pay her fees so have decided we should pay her rent instead. Would £500 pcm be about right on top she is sensible so would save any extra cash she had at the end of the month - it feels as if she wouldn't have to decide between a new pair of tights and food and give her enough to do some socialising etc as well. Should mention that she is going to study music so there are instrument costs etc like strings and bow rehairs etc that are not cheap either.

DD barely has fees in this case. She has a scholarship. Some London halls are 50 weeks rent too . Some are the standard 42. So multiply the weeks by the weekly sum. The loan will cover it either way. 50 weeks at £200 is £10,000 so at worst she has over £1000 for the year. Lots of halls require termly payments and are timed to match finance England payments to the students. So it’s often easier to get the loan and pay the rent.

Then work out what she needs regarding living expenses. This will depend on her rental agreement and what she actually needs. You know your DD so work up a budget from the bottom! So food, socialising, expenses you know about, clothes, laundry, toiletries, transport, etc. You do find that most students socialise in normal times and that’s how they get to know each other.

If she’s at Prince Consort Village and RCM - there are all sorts of shopping/food options. Is she frugal or does she like going out? Factor that in. Often a coffee out is the socialising time after working at uni. Different people have different needs and some parents will finance school to a higher level but paying out with no loan doesn’t make sense in this case. Just take the almost free money.

finance students (not school!)

If nothing else if she decides to continue to an MA afterwards then sometimes conservatoire ones are 2 year and you can only get 1 set amount post grad loan . So save what you would have paid out for that possibility.

My children did not take out any student loans. I know most mumsnetters think you might as well and I can understand the pros and cons but if you don't need to it's simpler not to do so and I was happier to pay to ensure they did not have student loans.

Here there are just about no fees to pay so if she can manage without any fees loan and any maintenance loan so much the better.

As for what people need how long is a piece of string? What you suggest sounds fine.
I pay my twins £150 a week plus for the one away pay his rent. In September they will live at home for their London course and I will still pay them £150 plus cover food costs but I am reasonably well off, work full time and am happy to do it (and the end is in sight....) They have some other money too but loads of people they know who are students have much less and some more. Most students just manage and if necessary get a job. At university a music student taught me the violin for relatively small fees for extra money for example. Your daughter may be able to do that kind of thing for London children learning the 'cello.

How about she works to earn some money. 🙄

In terms of work, good musicians at DCs London school would sometimes get well paid work playing at corporate and social functions.

From OPs post, I don't think the issue is OP not having enough to fund their DC, but how much money they need to give them.

A different situation to the one others find themselves in, where the DC need to take out loans and it is a question of how much parents need to give on top.

Here I think parents need to be clear. The student cannot really expect to enjoy a lifestyle better than the lifestyles of those paying them, and really ought to consider getting a job.

I am also a bit confused by the comment about transport in London being expensive. DS tended to walk. DD, who is in London this year, would have cycled had she been able to go into University.

Did either of them do that carrying a cello though?

I love the Higher Ed boards. A chance for a poster to slip in, without any relevance whatsoever to the OP or the point the poster is making, that both their DC will leave university as doctors.

OP - congrats to your daughter. Yes the shopping centre at Shepherd’s Bush - Westfield! - may prove a temptation but also it’s such a handy resource. Hopefully it has some good student discounts at both its shops and many restaurants.

You are right. The cello would be an issue. Though as much on the tube as on a bike.

How often do you take the tube Needmoresleep? If you did so regularly iced many years, you’re likely to have have seen at least one person with a cello on the tube. As for whether it’s more of an issue on the tube than on a bike: perhaps your medical doctor-to-be DC can explain to you the difference in difficulty between balancing the weight of a cello when walking briefly or sitting down in a static seat versus balancing it whilst cycling.

I would have your DD come up with a budget as a starting point for a discussion with you.

Students should learn to manage their own money. If she has the safety net of knowing her accommodation will always be paid for and she will not actually be made homeless by any budgetary mistakes, this is a good time for her to learn.

Yes all sorts of things are transported on the tube. The question is whether you want to do it regularly.

It also depends on the time of day. The sports kit/art folder/rucksack days were challenge enough, even without an instrument but then school children largely commute during rush hour.

Perhaps a bike with a trailer?

Thank you everyone - lots to think about. I know that we are incredibly lucky to be in a position to support her but she has worked so so hard and overcome so many obstacles to get here that we are keen she should be able to take RCM life by the horns without having to worry about money. One of my issues is that as a music student she needs to start building up/on her contacts and experience and I'd rather she was in a position to do that even if unpaid and so would like her to be in a position where she didn't have to turn down a useful gig because she had to work in a bar/supermarket. Also I have been concerned that she might have difficulty enough getting a mortgage in later life as a freelancer so was trying to keep her debt free as others have suggested.

She is usually quite aware of her money - complained last week that being given the wrong rehearsal time cost her an extra £3 in bus fares - and has no majorly expensive habits. Her main instrument is not the cello but she has been lugging one on London buses and tubes since she was 7 so is quite used to that side of life.

Please consider using the money you’ve saved for a house deposit later on instead of for uni. I’m so grateful that that decision was made for me.

My student loan is taken out of my salary at a rate of about £80 a month. That barely makes a difference to me. However being given a lump sum at 25 enabled me to buy a house which now saves me loads as a mortgage is cheaper than rent. An £80 extra a month would not have allowed me to afford a mortgage or a better standard of living. That lump sum made a huge difference though.

Better she takes the loan pays her own rent or what she can afford towards it and you keep the savings towards a house deposit.

Also I have been concerned that she might have difficulty enough getting a mortgage in later life as a freelancer so was trying to keep her debt free as others have suggested.

.......and that is exactly why it makes more sense for you to put the £27 - 54K you are thinking of spending on her living costs / fees towards a deposit for a home later. In 'lean' months / years no money will be taken to repay the student debt. If / when she earns over £26K in a year, then she will be taxed a lot less than she will be paying out in rent if she can't get on the property ladder

I totally see your reasoning and thought process and wanting to try to ensure your DC gets as much out of studying at RCM as possible. Studying Music does have extra time constraints in the evening/weekend which makes part-time work more challenging as well as the hours of practice required on top of all the other course work. She’ll have no idea of when orchestras/chamber groups/concerts etc are as well as other opportunities to perform to add to her profile.

We find that the way @MrKlaw does the finance works very well. Gives the student some budgeting to do without too much pressure for them. As students are there for study, we pay any study related costs on top such as text books, sheet music and instrument related items as these are very difficult for a music student to budget for.

@BackforGood

Agree with PP

Do you not intend to apply for the loan ? Remember it is mis-named and doesn't work like a loan at all, but a tax. Check Martin Lewis site for advice.

However, in terms of "What does a student spend, once (usually inclusive of bills) rent is paid?"
£500 would make her a rich student.
Half that is plenty.

However, on all these threads, people include or don't include different things the student has to use their own money for.

From phone contracts to travel at the start and end of each term.

Yes, do this - watch the Martin Lewis video. It has completely changed my mind about what a student loan is.

I’ve paid my DD’s accommodation for the last 3 years and it was over £6000 per year. I’ve had to work to pay it.

@SavingsQuestions

Absolutely know how expenaive london is as we moved out due to not affording it!

Just amazed that people can think having a spare 12k a year is a casual thing!!! I guess once you move in wealthier circles its easy to lose sight of the rest.

It's not far off nursery fees (cheaper in fact) so anyone with a baby in full time nursery has to find at least 12k per year

Well done to your DD one getting a scholarship! £500 sounds ok to me @Londonmummy66
We are paying for DD’s accommodation which is around 9k plus giving her some spending money for extras that she needs. Her accommodation is catered so will probably give her an extra £150-200 a month. She will have a student loan for her course fees though.

The thing is Midders, her repayments will be the same whether she owes £27K+ (just the fees) or £54K+ (fees plus maintenance loan). It will make no difference to the monthly amount she pays during the years she earns more than £26K. That is why you have to think of it as a tax, not like a normal loan.
If she doesn't borrow the maintenance loan, it doesn't decrease her payments each month, BUT the £9k a year she will have spent could have been saved and she would have £28K in her hand when she graduates.

I'd suggest starting a bit lower, and adjusting up if needed - it's easy to go up, (almost) impossible to go down!

My dd has a scholarship plus loan so I give her £120 a month. She always seeyto have money! They can live on fairly little. My other dd gets a top up from her dad plus the £120

Thanks everyone - will have a look at the loan situation - especially the request to have the scholarship paid in cash and the fees via the loan scheme.

Student loans are not taken into account for mortgages so you don’t need to worry about that. Do look at the loans and have the conversation about what she needs to enjoy university. Not what other DC do. They are different by and large and not doing her course. I hope music venues open up again! So much we are all missing!