Many parents dream of being able to support their children throughout their university education, but lack of proper advice when considering life planning, often leaves the pot lacking in necessary funds, and planning when the child is still young is vital to achieving a large enough pot for when they go to university. It is believed that the average pot now needed to go to university is £60,000, something for most of us would be unachievable without proper financial advice.
If you start investing £170, which is a lot of money for most and put it into a child’s building society account such as Halifax which offers an annual rate of 6%, it could give you £66,000 by the time your child goes into higher education, before deductions. However this amount each month would be too much investment for most parents.
If you invested half of your child benefit per week, it would give you a total of £40 per month, this would give you about £14,000 based on 5% interest over 18 years, but this wouldn’t be anywhere near enough to support your child. Another way to boost the pot would be to ask relatives, friends and so fourth to add money to the pot, and over time this would help to boost it, but it is a slightly risky approach. Proper advice from an IFA would be advisable, as they will give be able to give you a choice of investment strategies, including stock market-based investments that often produce higher returns than building societies.
It is never too early to start planning a strategy for paying your child’s further education fees, if you would like some independent advice on how you can build up enough money for child’s future, then why not get in touch with Enable Independent, we will be able to help you through each stage of life planning, ensuring you achieve what you want, not what you’re financial situation dictates.
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