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Rising university debts put pressure on parents to save at least £160 a month from child's birth

With today's students graduating with average debts of £51,000*, Wesleyan, the specialist financial services provider, calculates parents will need to save £163** a month from their child's birth until graduation at age 21 if they want to cover the entire cost of university.

But the monthly saving figure jumps up if parents put off saving. If they wait until their child starts primary school aged five, they will need to save £226 a month - forcing them to save an additional £2,316 before graduation to make up for lost investment growth. Waiting until secondary school at 11 will mean an increase to £384 a month.

If savers hold off until their child has taken their GCSEs aged 16, the amount parents will need to save more than doubles to £808 a month - and also, because they haven't had the investment growth over the years, means they will have to find £7,404 more than if they had started saving at birth.

Vicki Wentworth, Wesleyan's Chief Customer and Strategy Officer, said: "With average university debt tipping over the £50,000 mark for many students, it's understandable that parents might want to help their children financially so they are not burdened with debt as they graduate.

"However, it is still a big financial commitment for parents, and the earlier they take advice, start planning and making the most of tax efficient savings products - in particular utilising their full ISA allowance - the more affordable it will be over the long term."

For more about the benefits of investing sooner, go to www.wesleyan.co.uk/investments-and-savings.

Remember the value of investments and any income can fall as well as rise so you could get back less than you invest.

Wesleyan is a mutual financial services specialist for doctors, dentists, lawyers and teachers.


* From 'Higher Education funding in England' report by the Institute of Fiscal Studies, July 2017
** The calculator is an example of what your investments might be worth and is not an illustration of potential returns. The annual growth rate and inflation rate will depend on a number of factors over time including performance of the investment and changes in future inflation levels. The monthly savings calculation uses an annual growth rate for illustration based on typically investing over the longer term (more than 5 years) using a mid rate of 5% growth that is considered average. This does not include any product charges so any personal illustrations from a Wesleyan Financial Consultant will differ from those shown above. For more go to www.wesleyan.co.uk/investments-centre/online-savings-calculators/cost-of-delay-calculator

'WESLEYAN’ is a trading name of the Wesleyan Group of companies.

Wesleyan Assurance Society and Wesleyan Bank Ltd are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Wesleyan Financial Services Ltd, Wesleyan Unit Trust Managers Ltd, Practice Plan Ltd and DPAS Ltd are authorised and regulated by the Financial Conduct Authority.  Advice about investments, insurance and mortgages is provided by Wesleyan Financial Services Ltd.

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© 2018 Wesleyan Assurance Society