Helping your children or grandchildren get a head start in life is something that all families want. Whether that’s through saving for a deposit on their first home, paying school fees or putting them through university.
Over the past years, we have all witnessed house prices rise more than the wages, hence posing a challenge for younger generation to get on the property ladder. Moreover, the cost of putting your child through University has more than doubled over the past 10 years. An academic year at University will cost around £18,000 per annum (inclusive of tuition fee, accommodation & living expenses), which amounts £54,000 per child based on three year University program.
This amount seems daunting, however, if one plans to save early on a regular basis from the day the child is born, then the amount needed for University education can be achieved. You can see below that by delaying saving by 5 years, the monthly saving contributions rise from £127.57 to £215.35.
|At birth of Child||Delay by 5 years|
|Saving term||18 years||13 years|
Note: This example is for illustrative purposes. The example is based on the assumption that your money grows by 7% per annum.
The following are some basic questions that you should consider to help you understand your financial needs and plan for them accordingly:
- How many children do you have?
- Do you want your children to study in state school or private school?
- Are your children going to University? if so, when will they start university?
- Will they live at home or live in student accommodation, whilst at University?
- By what age do you want your Children to have their own property? How can you help them get on the property ladder?
You can see the importance of saving early in the example above. We believe sound financial planning is ever more important, so the sooner you start saving, the better.
At Simply Ethical, we offer you the opportunity to invest over the long term to help meet your objectives. For more information on how we can help in this area, please contact us.