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News Release
Friday 27 August 2004
BRITISH PARENTS FACE SIX FIGURE SUMS AS FUTURE EDUCATION COSTS SPIRAL
The cost of raising a child will continue to rise steeply in the future, as private and higher education costs put unprecedented financial pressure on parents.
According to analysis by Skipton Building Society in its ‘Financing Your Future’ report, growing dissatisfaction with the state school system, coupled with a rise in affluence, will cause a surge in the number of parents opting for independent education for their children. As a consequence the number of privately educated pupils will double from seven per cent in 2004 to 14 per cent by 2020.
This shift from public to private school won’t come cheap. A child starting school in 2004 will cost on average £130,000 to educate privately through school and families with more than one child will be hit harder. And, this figure is set to rise, as the average independent school fees rose by 10 per cent last year, and now stand at more than £9,000 per annum.
The financial strain will continue long after school has finished, the Skipton report reveals. By 2010 university leavers will be out of pocket by around £20,000, which in turn will leave them with no option but to return to the family nest to save money to pay off debts, resulting in parental contributions being forced higher than their current estimate of £500 million per year.
The pressure on parental purse strings will be further exacerbated over the next two decades should the £3,000 cap on top-up fees be lifted. Top colleges could increase tuition fees to the tune of £10,000, causing the average level of graduate debt to skyrocket to £50,000. With the government aiming for 50 per cent of young people aged 18 - 30 going into higher education by 2010, the end result will almost certainly be even more students, with even more debt.
Jennifer Holloway , head of media relations at Skipton Building Society said: “Most parents want their children to get a good education and this report highlights how vital it is to start saving early. It’s a message that people have heard before, but it could make a real difference to your child’s future prospects.”
To help parents save effectively for their child’s education, Skipton Building Society has created an innovative website - www.savetolearn.co.uk - which provides savings advice, information about how to plan ahead, and has an online test so visitors can check if they are on track to meet the financial demands of educating their children.
Ends
Editor’s Notes
Methodology: The research was undertaken by worldtocom.com futures network on behalf of Skipton Building Society in July 2004.
Skipton is the UK ’s seventh largest building society, with a national presence represented by its 84 branches, covering the country from Aberdeen to Plymouth . An innovator in the field of mortgage and investment products, the Society stands apart from its counterparts as the parent to 16 subsidiary companies, many of which operate in the financial market.
For further information journalists should contact the Skipton Press Office.