What’s the real cost?

A A child’s first day at school marks the beginning of an exciting journey towards the next stage of their life and – ultimately – financial independence.

However, research consistently shows that education costs, particularly those associated with private schooling and university living, mean many parents now provide meaningful financial support into their children’s late 20s and, in some cases, early 30s.

For many families, this support does not always come without compromise...Recent research by the National Union of Students reported that 86 per cent of UK parents financially support their offspring throughout university, primarily due to maintenance loans failing to cover living costs.

For Scottish families, despite the benefit of free tuition, this remains a particularly relevant statistic. Rising accommodation and living costs – primarily across Edinburgh, Glasgow and St Andrews – mean many parents here still provide significant outlay.

Yet, the costs begin long before university. From uniforms and school trips to extra-curricular activities, the financial demands of education extend far beyond the classroom.

For parents of those attending fee-paying schools, the pressure is even greater. According to The Good Schools Guide, fees have increased almost every year for the last three decades. As a result, not only is the longevity of parental financial support rising, so too are the costs. These are pressing and immediate, while retirement can feel distant. A robust financial plan ring fences long-term goals, like retirement, so they remain on track even during high-cost education years.Without proper planning, families can often find themselves making unintentional trade-offs, even reducing pension contributions. Often, the real impact of these trade-offs is underestimated and will not become apparent until further down the line.

At Acumen Financial Planning, we help families plan ahead so that today’s decisions don’t unintentionally narrow tomorrow’s options. We can support families in exploring savings and investment solutions designed to maximise tax efficiencies and benefit from compound growth over time. The real value of financial planning is realising that in supporting your child’s education, you don’t have to give up security and choices for yourself.

Acumen Financial Planning Ltd is authorised and regulated by the FCA, FRN 218745. The content of this article is the opinion of Jonathan Whan and does not constitute advice or recommendation

https://www.acumenfp.com/