Next year’s intake of fresher’s students face the prospect of forking out up to £50,000 to fund their three years of study.
The costs of university education will increase dramatically next year as students are set to pay £9,000 a year for their tuition fees.
Further research has revealed that the cost of accommodation over three years at university is on average £10,800.
With living costs, and course books,student insurance, trips and other expenses students can expect to pay out an average of £48,500 over their three years found the study, substantially more than a student 5 years a go.
With costs increasing all the time parents now face the prospect of having to plan for the children further education a lot earlier.
Many parents will now start putting money aside for their children from birth, in a similar way to those in America with their expensive college system.
With the Child Trust Fund all but abolished and the Junior ISA not available until November parents will be wondering what accounts to use to save for their children’s future.
Fortunately there are several alternatives, with a Children’s Bond account, or Children’s Tax Exempt Savings Plans also on the market.
These savings accounts are a good place to save money, as the interest they earn is unlikely to be taxed as the children won’t earn over the tax threshold in the year.
Some accounts offer instant access but many keep the money in until he child’s 18th birthday, making them ideal for saving for university.
While some children’s savings accounts allow instant access to funds, there are also fixed rate bonds or accounts that can’t be accessed until the child turns 18, where early access to the money is restricted.