A recent survey conducted by Wealthify has revealed that a quarter of parents do not believe they are earning enough to save effectively for their children.
Furthermore, a third of the parents polled shared that they will not be contributing financially to their children’s higher education.
Despite this, 43.9 percent of parents admitted they will contribute to their children’s first home to get them on the property ladder.
One parent, Jay Patel from Essex, spoke exclusively to Express.co.uk about his concerns about saving for his daughter and how he plans to make her debt-free.
Mr Patel said: “All being well, we hope to have £80,000 saved by the time our daughter attends university.
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“We anticipate a yearly cost of £20,000 for university fees and living costs (Based on a 4-year course).”
Looking to the future, the IT consultant shared how much debt he predicts his daughter will be in by the time she leaves higher education.
“With current costs in mind, we suspect she would incur a debt of at least £50,000 by the time she left university, should we not be in a position to assist,” he explained.
When it comes to the Patel household, money is an open conversation which Mr Patel believes should be replicated by other families.
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He added: “I do hope there is a correction in the market at some point in the near future.
“We really need to encourage cheaper borrowing and offer at least some element of interest free borrowing to encourage our students and younger generation to take the leap towards home ownership.
“The issue is compounded by the fact that market rents are also on the increase, and it is extremely difficult for youngsters to free themselves of this trap.”
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