3 November 2017
Investment Services
We are sure by now you will have realised that support from student finance alone will not cut it. A parent, on average, will pay £10,000 over a three year degree to support their child while at university, which equates to almost £300 per month. These extra costs cover all the other aspects of university life including living costs, text books and travel. By the time a student finishes university, they could find themselves with £44,000 of debt on graduation. 1
However, according to Aviva, only one in seven parents saved enough to cover all university costs and almost a third of parents gave children money to pay off their student debts. 2
However, it’s never too late to prepare.
As a parent or grandparent, you are able to build a university fund by investing up to £4,138 tax free in a stocks and shares Junior ISA. Investing may be a better alternative if you are fed up of low interest rates and don’t want to see the value of your savings diminish.
We have our own in-house plan called the JES Stocks and Shares Junior ISA which aims to pay an income of 3.5% as well as the potential added capital on top. 3
If you would like to learn more about our JISA, please call 01934 875 919 to arrange a meeting with one of our friendly investment managers.
Sources:
1 Aviva Family Finances Report, summer 2016.
2 Unless stated, all figures are taken from research carried out by Censuswide for Aviva in June 2017. 2,000 UK parents who have children at university or who have been to university in the last 10 years were surveyed online.
3 No recommendation: Please remember the value of your investments can fall as well as rise and you may not get back what you initially invested.
