Parents not ready for university costs
One parent in five has no idea how they would pay for the cost of a child going to university, new research reveals.
Moreover, two parents in three have put no money aside to help their sons and daughters through college, figures from Engage Mutual Assurance show.
"With university tuition fees set to jump to £3,000 from September 2006, it's worrying that so many parents have yet to plan how they'll meet the growing costs associated with university education," said Andrew Haigh, Engage chief executive.
However, this is increasingly a problem with ever-more school leavers heading off to university and graduate debt shooting up 74 per cent since 1998. Six out of ten students already think their studies have suffered due to financial trouble.
And only a third of parents have started saving to provide a helping hand with just a quarter planning to start saving before their child turns 18.
But with so little money in the bank, parents are looking at different ways to make up the financial shortfall.
Almost one in four will tell their children to live at home rather than attend the best university, some 35 per cent will advise offspring to get a part-time job, and one in 20 will tell impoverished children to ditch their education in favour of full time employment.
As well as advising children to minimise costs, parents are also planning on making sacrifices later rather than savings now.
One parent in six plans to change jobs to make sure their children can study in peace, one in five will work longer hours, and one in 12 will tell their partners to return to work.
At the same time it is easier than ever for parents to put money aside for their children's future.
"The introduction of child trust funds last year has created an excellent opportunity for parents to take a longer-term view of tax-efficient saving for their child's future," Mr Haigh said.
"An investment of just £5 per month now could make a tangible contribution by the time their child reaches 18. Those who don't have children eligible for a child trust fund could also consider using their ISA or other tax-exempt savings opportunities, because it's never too late to start to save."
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