How much for parents to save for university?

[Deeprug]

Just starting to get my head into this. Two dc at secondary close in age and potentially would be at uni at the same time. We have an average income; how much would you try and save for each child to try and take the pressure off us when we get to that point? What would be a good amount? We are not rich, so it would have to be for a basic level iykwim. Is it £5K per child, per year? £10K??

Martin Lewis from Money saving expert has a great calculator that shows their plan entitlement and how much parents are expected to contribute to top up. I say good. It's actually terrifying!

https://www.moneysavingexpert.com/students/university-living-costs-calculator/guide/

What do you mean by average income?

How much you need depends on what student loan they will get. My son is on minimum loan so I contribute about £5,600 per year.

My son's friend is from a low income, single parent family so his mum doesn't contribute anything as he is on maximum loan.

The danger is though, is that circumstances could change closer to the time.

At the moment, the maximum student loan outside London is £9535, which is means-tested, but everyone can have the minimum loan of £4915. So if you think you won't get more than the minimum, £5k is the right ball-park for topping up. Some places are more expensive to live than others, but there's always the possibility of them earning from a part-time job or in the holidays.

Thanks for the information! Ive tried the calculators. Its hard to see how meaningful they are this far in advance, but would like to do something now to alleviate the worry.

£30K looks about right as a minimum then. I already know that won't be enough!! Such a strange time of life. Need to be overpaying mortgage, overpaying into pension, saving for university, trying to live. Its just not possible to do it all.

My parents started a uni account for DD when she was born, she should have about £30k when she is 18. I’m hoping that will make a dent (she is now 6 and has about £11k thanks to good interest rates).

Grandparents sporadically pay into an account for them which should just about cover driving lessons.

You can only save what you can afford.

I think the government says i should pay out £500 a month to my son. So i think I should have been putting away £80 a month per child since they were born.

I didnt. I didcsave some but no way near thatm

Its a scary amount, but some of that is for things I already buy him like food, but just in a different location. He also worked through A levels to contribute a bit himself (and holidays)

This is it. We are only in a position now to even think about this. Its having the two so close together that is the real issue I suppose.

hi, it is a worry, but bear in mind - (a) they may not go to uni (b) they might stay at home, which is then way cheaper for you - assuming that is an option.

most of us can't afford to have saved up enough to cover rent/living expenses for each child for three/four years. That is just the reality in which we are living.

my eldest two stayed at home for uni, and I didn't charge much rent (£50pcm), they have the max loan, and worked to earn spending money.

I have friends who earn way more than me, and they have saved up enough to cover rent for their kids throughout uni, and so their kids haven't need to take out loans.

we have the minimum loan for Dd and the remainder is made up as follows:
grandparents give her £1200 per year which is very generous
dd works in the summer
us
when the time comes to thinking about which university it’s worth researching accommodation costs as they can vary considerably. Dd is at Bath which is £££ and ds graduated from Warwick which was £ as he lived in Coventry.

If your child lives away for uni and your household income is over £62k then they can only take out the minimum maintenance loan which this year is £4915. Dc's accommodation last year was £8k and he needs to also eat. To top his money up to the maximum loan amount we are expected to fund him £5629. We actually pay a bit more than this as he is our second to go to uni and we needed to make it fair.

We saved based on a finger in the air £5k each but we covered 4 years so we had £40k in a savings account in our name with the intention of it being to pay for uni but should we have needed it for anything we could access it. This is my way of saying you never know if you have a child who will blow all the money they have saved, it happens a lot and people post on here about it too. Dh and I both went to uni so knew we would be paying for our children so started saving a very long time ago.

That £5k is now £5.6k based on where it was 4 years ago when my eldest went. More students work than not, some stay home so don't have to pay out the stupid accommodation costs. Some unis are in expensive areas, Bristol and Exeter spring to mind. Some had flat rates for all accommodation, like Durham for self catered and some have very high and very low costs on campus. Definitely worth looking into it all now just to get a feel. Just choose some random ones. A lot of students live on a small amount and use their overdraft out of necessity. Essentials are food but that can be just supermarket not takeaways and laundry. After that you cut your cloth. If you haven't got it you can't give it. They could work over a gap year and fund themselves the top up.

As you have secondary aged children I would be saying £6k per year based on minimum maintenance loan and topping them up the maximum loan but basically as much as you can in your name.

Topping up to the maximum student loan will be woefully inadequate for many universities.

It's good you are considering now. Other points to note are

• encourage your DC to get jobs in sixth form, particularly ones that make them employable in their uni town/city (where there are likely to be more students wanting jobs than there are jobs)
• Encourage them to at least work over summers and save (see first point)
• Taking a gap year to save more may be a sensible option.

If it helps, we will have given DD around 27K when she graduates - we've paid her rent and she gets the minimum maintenance loan. She has worked through sixth form and had summer jobs while at university (unfortunately couldn't find a term time job) and very much does not lead an extravagant lifestyle.

Thank you for your detailed reply. Dh and I both went to university (I have been to 4) but it's only now we can start to think about saving. The money will not be theirs, and if they don't go to university we shall use it for us.

@Deeprug
Just checking you live in England OP?

Scotland and Wales have much more generous systems than England, not sure about Northern Ireland.

Specific amounts will depend on what loan they are entitled to, where they are thinking they would like to go and the length of course. However, I would make sure some of the onus is put onto them if they want to go and that they understand the consequences of their decisions. My son has just started a 5 year degree where working alongside will be difficult. However, he knew upfront that he had to rule out expensive cities and work before hand and in the summer to help fund himself.

Yes, in England. Realistically it is £10K per year, per child, I guess. We have already discussed that they are only to go if job demands it, which is the reality, and who knows what impact AI is going to have on everything by the 2030s.

The numbers are eye watering. Ds has said he'd like to go to a London Uni but I'm trying to convince him to look at other options for cheaper living costs.

Another thing to consider is a gap year where youe dc can work to contribute towards the costs. I think students really need to be sure it's worth the cost these days. I will be exploring degree apprenticeships with ds as well.

If either is considering an integrated masters e.g. for engineering then you are looking at 4 years. Medicine is 5. A year in industry also adds a year but at least they would be paid and fees are minimal for that year. Strategic gap years and years in industry could ease the financial burden of two DC at university at the same time. The system doesn't seem to consider that.

DS starts his first year today. We are not big earners so he's getting around a £7.5k maintenance loan, leaving us to top up the rest (about £3k). His loan just about covers his (mainly catered) accommodation (although I've paid the £400 deposit and gifted him that) and the plan is we will give him £300 a month and he will pay himself the same from money he's saved up working over the summer. He'll then work at Xmas to help fund Term 2. Right now I don't know whether he'll have enough to live on but will know more by Christmas I guess.

Is this in addition to loans to pay for tuition fees?

Based on previous conversations I don't think DD will go (luckily maybe?!) But she's only 13 so that could change. We're saving loads for her but I had it more earmarked for a car& associated costs and a house deposit but it could find uni if she does end up going. But as a PP said, I'd only be encouraging it if it's for a specific industry/job

@HelloCheekyCat the tuition fee loans go straight to the uni and all students get the full amount. It's just the maintenance loans that are means tested.

We have had to pay for uni since 2002. I am unsure why people only start to think about it when their kids reach secondary school ….

For us it was more about loving within our means than saving, although I guess the same effect.

Ds's studen loan covered most of his accomodation. We topped him up about £1k per term for rent and sent £50pw for food and everything else. I worried it wasn't enough but he found things quite comfortable.

At one point I had the idea that we'd pay the fees rather than having him take loans, but decided that was all a bit pointless.

A lot of people I know (in real life, not on mumsnet) didn't think about it because they are first generation uni families. It never occurred to them that university would even be an option for their children. Until recently, our local schools didn't even present it as much of an option really. Our schools don't have 6th forms you have to go to college so it is often only when you get there that university starts to be talked about.

We have had to pay for uni since 2002. I am unsure why people only start to think about it when their kids reach secondary school

Being graduates ourselves, we have not only just thought about it, as if we are stupid; we have not been in any kind of financial position to do anything about it. Im not going to go into the ins and outs of why here.