Many families are resorting to spending savings put away for school fees or university costs because of increasing living costs and day to day expenses, according to several recent studies.
More than half of parents who answered the survey said that they had used money saved for their children’s private school fees to pay for their escalating living costs. Average private school fees and costs amount to more than £500 a month.
Sending children to day schools instead of boarding schools
A quarter of parents said they had cut down on how much they spent on school fees, whilst five per cent – amounting to more than 100,000 parents – had stopped paying fees entirely. Many parents had switched to cheaper options, such as sending their children to day schools rather than boarding schools, or switching to state schools instead of fee paying establishments.
Separate research from HSBC revealed that around half of parents had not yet begun saving for future costs, such as university fees – which are set to treble from next year. Ten per cent of those questioned said they did not plan to pay anything towards their children’s university costs at all. With fees set to rise to £9,000 a year, some students may be forced to pay as much as £50,000 for their university costs in future.
A number of parents who aimed to save towards future education fees had considered renting out a bedroom in their house to earn extra income. Others felt they would have to work longer hours or take on a second job in order to meet costs. Some say they will make savings on costs by telling their children to live at home whilst at university.
“Choice between making day to day finances work and their children’s futures”
Liam Suter, from CompareJuniorISA.com said: “This alarming trend towards dipping into children’s savings to make ends meet will only end in disaster in the context of rising tuition fees. Families with no other option are being forced to make a choice between making day to day finances work and their children’s futures. Though times are hard for all of us, we encourage parents to save a little every month for their Child’s future in the new Junior ISAs. A small amount now will make a huge difference down the road.”