£54,000: the cost of a university education in the UK
Written by Lynda Calver on June 28, 2015.
The average cost of a university education in the UK continues to rise according to a survey of 2000 graduates. An annual rise of 8% in fees and the increasing cost of living means that the average student will leave university after a three year course £54,000 the lighter.
Average tuition fees for degree courses have risen by £500 over the last year to reach £8,601. The most expensive degrees were in humanities and social sciences with science, engineering, maths and technology the least expensive. Added to average living expenses of £9,512 this means that a student will need £18,113 to get them through the year, compared to £16,804 in 2013.
How a student spends £9,512 per year in living costs
Books, laptops and stationery £718
Social life £733
University clubs and trips £256
Gym membership, personal grooming, laundry, clothes £949
Credit card/personal loan repayments £442
One thing is certain, a university education does not come cheap. If you are a parent, these figures will probably raise two questions: how on earth will I be able to afford to send my children to university and is it worth it?
In answer to the second question, the evidence seems to suggest that a university education is worth the cost. Although graduate salaries at entry level are falling, graduates are far less likely to be unemployed, and there is always the chance of becoming one of the 20% of graduates who become millionaires!
So how do you afford it?
The answer is by saving regularly into an education fee plan over the course of your child’s life. The ideal scenario is to start an education fee plan from birth but even if your children are older, it’s never too late to begin.
A well managed plan will form a part of your long term financial planning and a good one will enable you to make regular payments as well as lump sum deposits as and when you can afford them. It is a good idea to speak to a professional about how you may be able to structure your savings in a tax-effective way and how you can put in place a payment protection plan to guard against unfortunate changes in circumstances.
If you want to learn more about education fee planning or any other financial planning matter get in touch at firstname.lastname@example.org