Going to university is not cheap, especially when you factor in tuition fees, accommodation, and living expenses. Many parents want to be in a position where they can support their child financially if they decide to go into further education. Saving for your child’s education might seem daunting, but there are dozens of simple ways to build savings without making huge sacrifices. Here are some useful tips on how to start saving for your child’s education:
Create a savings plan
Your first task should be to create a savings plan. Think carefully about how much money you want to save and set a realistic savings goal. According to Metfriendly, student debt can top £57,000 for students on a standard three-year degree. This amount can seem overwhelming, but you must remember that there is plenty of financial aid and support available for students. Most students take out a loan to cover their tuition fees and accommodation and then receive some financial support from parents or other family members.
The amount you provide for your child is completely up to you and will depend on your financial situation. For instance, you might want to save £9,000 by the time your child goes to university and then give them £3,000 per year towards study equipment, rent, and other living expenses. In this situation, you would need to save £900 a year for 10 years which equates to £75 per month. Saving this amount each month is far more manageable than trying to get £9,000 together quickly before your child moves to university. Create a solid savings plan and calculate how much money you will need to save each month.
Set up an automatic transfer
The best approach to saving is to set up an automatic transfer at the start of each month. That way, the money will automatically be deposited into your savings account and you will be much less likely to spend it. You can download an automatic savings app that uses technology to calculate how much you can afford to save each month. The app will move the money into a virtual savings account and encourage you to build your savings.
Cut your monthly expenses
The easiest way to boost your savings is by finding ways to reduce your outgoings Go through your monthly expenses and highlight anything that could be cut from your spending. For instance, take lunch to work instead of eating out and cancel unused subscriptions and memberships. According to Growing Power, you could save hundreds of pounds a month by switching to a budget-friendly supermarket like Aldi and using price comparison sites to get cheaper deals. Another way is to seek free things to do in your spare time with friends and family. It’s not always lattes and takeaways!
Final thoughts
Saving for your child’s education might be easier than you think. If you are planning on supporting your child through university, then it is a good idea to start saving as early as possible. Deposit a small amount into a separate savings account each month and your child’s education pot will build gradually over time. Building savings slowly is much easier than trying to get the money together quickly. The above tips will help you save money towards your child’s education and support them in later life.
