If your child MIGHT go to university in 8 years time, how much should I be putting away to cover this?

[Tinker]

She may well not go, of course, but since I should soon be in a position to do something about it I thought I'd better give it some thought.

Also, have a 2 year old - assuming I want everything to be equal in the end, how much should I put away for her?

How do I do these things? Monthly savings? Lump sum somewhere? Am risk averse.

We save DSs child benefit, although with 8 years to go you may need to put more away. We are spreading ours amongst regular savings accounts, ISAs and premium bonds.

The two year old should be covered if you make regular payments into his/her child trust fund.

It depends on your financial circumstances with regard to your eldest. My dh is as skint as a rat, and has four kids. The two oldest are already in university and they've had grants. Ultimately, it's up to them. You don't have to provide all of it. Kids can work behind bars, in care homes, whatever. Anything to get them through.

I was thinking fees mainly, rather than their living expenses. I got a grant (and housing benefit in the summer holidays ) so never had to comtemplate working. But grant was topped up. Really, I'm thinking that I don't want lack of funds to influence any decision.

How much pm/pa into the child trust fund is "enough"?

That's very generous of you Tinker, thanks

I think they are talking about fees going up to £5K in the better universities even in the next couple of years, aren;t they, so I guess you would want to aim for £20K (gulp). Or it might be cheaper to move to Scotland.

Oh tamum, I'm lost. Are you my child? Am slow and tired tonight

Sorry Tinks It was the title...

Ah. Numbers. So, how do I get to £20k equivalent in 8 and 16 years?

Oh , Now I get it!. [Slow, slow, slow emoticon]

Oh crumbs, I am useless at this, sorry. If you started an ISA or whatever they are now for each of them that would fit with being risk averse and not paying tax, at least. I don't know how much you'd make from that though.

Just divide the amount you think you will need by 8, then intrest will be like a bonus.

I couldn't resist the joke sorry (but it was a teensy bit funny )

LoW - yes, that sounds obvious when you put it like that Where can I find out what £20k might be in 8 and 16 years' time? Any calculators?

Well, say you want 20k...

for 8 years you want to be saving £2500 a year, so £208.33 a month. I hate doing intrest, i'll go loo for an intrest calculator on the net somewhere.

for 16 years, £1250 a year, £104.16 a month.

£200 a month at 5% over 8 years gives £23,548

I think I will do lump sums instead looking at those figures. Assume that's wiser?

£100 a month over 16 years at 5% gives £29,324

Thanks LoW.

@ tamum (you are norty)

God knows what the fees will be in 8 years time, let alone in 16. My cousin paid the fees for her elder son (now 23) when they were c £1100 pa, and in the interests of fairness is stuck with paying them for the younger (now 19) at £3000+.

As fees are now a loan to be paid off as and when by the student, rather than an upfront expense, I would concentrate on helping out with living expenses - eg paying most of their rent? Those do vary wildly depending on the institution, the location and whether they are in hall or not and catered or not, but shouldn't be as unpredictable as fees.

Investing their child benefit sounds like a good plan as a minimum. We had an IFA round when DS2 was a baby, about 14 years ago, and he reckoned then we needed to budget to raise £75000 per child - yeah, right!

(Ours are more or less self-financing - ie self-borrowing - DD1 has managed quite well although she was a £1100 tuition student; DD2 is floundering, and she doesn't even pay tuition as her Social Work degree is covered by the GSSC but then she is just crap with money)(wonder where she gets that from???)

Oh god, it all sounds like too much hassle now. Think I'll save it then see what's happening (if anything) at the time. Just wnat to save them from crippling debt if I can. But also don't want to be seen as a cash cow

I would try to save for as much of the tuition fee as possible and let the child know that they will be responsible for their living costs. Anything may happen in the next 8+ years, so don't go without in order to afford something that may or may not cost anything in the future.

Yes, you're right.

Also £100 in eight years will be a completely diferent spending amount to £100 in 16 years

EG £100 in 2000 could buy a portable telly

£100 in 1992 could buy a ???? quite nice telly?

Tellies have actually got cheaper, katymac (A nice telly in 1992 cost about £400 )

But I know what you mean.