University costs have increased significantly of the past few years and these costs don’t look like they will be falling any time soon.
In fact, an article from the Independent Newspaper claimed that the combined total of tuition fees and living costs over the period of a three year course has increased astronomically in recent years to an average of £50,411. Furthermore, with the current tuition fee cap at £9,000 per academic year not guaranteed to remain the same in the long term future, there remains potential for tuition fees to increase further.
This has left many parents worrying that their children might not be able to afford to go to University and improve their career prospects or that they’ll leave university with huge debts.
There are ways that parents can save for their children’s future that are easy to manage, flexible and tax-efficient.
Ways to cost with university costs:
A flexible university savings plan
Our University Savings Plan allows you to gradually save for your child’s education on a monthly basis. The flexible plan allows for monthly investments from £100, £125, £150, £175 and £200, with the option of changing the monthly investment whenever you want. Additionally, your child has the option to either receive a lump-sum payment when they turn 18 or to be able to make withdrawals during the period of their university course (between the ages of 18 and 21), helping them with the cost of both tuition and living costs.
What separates this plan from a regular Junior ISA is the great benefits that come with the plan. These benefits include cover costs of up to £200 a week if your child falls ill for a period of more than four weeks and isn’t able to attend school or college. Additionally, if the premium payer were to die, the child’s future savings would be secured by us at Shepherds Friendly Society, as we would actually continue to pay the current premium level on behalf of the premium payer for the entire term of the plan, providing the premium payer was under 50 years old at beginning of contract and has paid at least 24 monthly premiums at the time of death, meaning that your child is guaranteed a tax-efficient lump sum when they turn 18.
How much could my child receive?
The size of the lump-sum your child receives depends largely on the premiums you choose to invest and how well the investments perform.
How do I know my investments will perform positively?
Whilst a positive performance isn’t guaranteed, Shepherds Friendly Society is a mutual organisation, meaning that you can save with confidence knowing that our primary duty is to our members, not to any shareholders, and that our special tax status offers you distinct savings advantages.
How do I apply?
It’s incredibly easy to apply for a University Savings Plan for your child, you can either apply for a quote online or give us a call telephone on 0800 526 249.