Parents and grandparents are increasingly dipping into their own finances to help children through university, but experts warn they must not neglect their own long-term financial health. New research from Standard Life reveals that more than one in ten parents are either paying for or saving towards university tuition fees to reduce the need for student debt.
Financial Balancing Act
Supporting children through higher education is becoming a financial balancing act. One in six parents expects to retire later or enjoy a more modest retirement as a result of helping their children. Mike Ambery, retirement savings director at Standard Life, said it's becoming harder for families to juggle rising higher education costs with their own long-term financial goals.
Tuition fees in England are set to rise to £9,790 a year for the 2026/27 academic year, meaning a typical three-year degree will cost around £29,000 at today's prices. If tuition fees rise by 2% a year, a child born today could face a bill of almost £43,000 for a three-year degree by the time they reach university. Parents may also want to help with accommodation, travel and day-to-day living costs, pushing the overall bill even higher.
Expert Advice on Sustainable Support
Ambery said: "It's understandable that many parents want to step in where they can. However, it's important they don't lose sight of their own long term goals." He urged families to review their income, outgoings and longer-term savings goals to work out what level of support is realistic and sustainable.
Ambery also recommends starting to save as early as possible, even if it's only small amounts. "Starting early may allow families to spread the cost more gradually, rather than relying on larger lump sums closer to the time children begin higher education," he said. He also suggested considering tax-efficient savings such as a Junior ISA.
Honest Conversations and Pension Contributions
Finally, he said families should have honest conversations with children about how much support they can realistically provide and continue paying what they can into their pension to help avoid financial pressure later in life.
