The cost of a private education is so expensive that young couples are saving for school and university fees before their child is born.
More than one in four (29%) are paying an average £79 a month into a Junior ISA in anticipation of a funding university fees, while another 10% are saving to give their child private schooling.
Over the child’s lifetime, that £79 a month can turn into £17,400 of savings, says Simon McCulloch, director of insurance at web portal comparethemarket.com.
“At £9,000 a year, university fees are a significant investment and, when combined with current property prices, many parents clearly feel that they need to save now in order to give their children a helping hand in the future. It’s a good idea to put aside what you can before your baby is born and before the cost of childcare, nappies and baby clothes start to kick in,” he said.
Pledge to save cash
“Life insurance and savings are a wise investment to make when you start a family. While dealing with a baby keeps new parents busy, it is important to consider how your family would be financially cared for in the event that the worst should happen. Take the time to consider the right policy for your circumstances and how much cover you need.”
The company’s research found parents expect to save £1,204 before their child turns one year old.
Around one in five expect to save £2,000 towards education costs before the baby is born.
More than half of parents (58%) intend to save every month, while a fifth (21%) want to save every week.
Sky-high schooling costs
Another 60% want to protect against the unexpected by taking out life insurance.
The company revealed starting a family was one of the most common triggers for arranging cover.
UK university fees come to around £9,250 a year for the three-year course, plus living costs, travel; books and entertainment among other expenses.
Private schooling can average £14,100 a year with a host of additional costs as well.