Children Expect Parents to Pick Up the Cost of University Fees

LONDON, May 30, 2012 /PRNewswire/ --

More than a quarter (28%) of children expect their parents to pay at least half of their university fees

Less than one in ten (8%) plan to take a job in order to fund university themselves

One in fifteen concede that they wouldn't be able to afford university, despite wanting to go

Research* from Legal & General Investments, one of the UK's largest investment providers finds that more than a quarter of children expect their parents to foot at least half the bill for university.  

The survey of 1,000 children, aged between 6 and 15, offers an insight into the financial expectations of children from across the UK. The research accompanies the launch of the Legal & General Investments Junior ISA and Finance is Child's Play video which gives a charming insight into money from a group of six year olds from across the UK.  

Encouragingly, the research also found that more than a quarter (26%) of children plan to help pay for university fees themselves.  Of this group, almost one in five (18%) say they will take a part time job and split the payments with their parents while one in twelve (8%) intend to pay the full costs alone.  For seven per cent of children however, university is a pipe dream, stating that despite wanting to go, they wouldn't be able to afford the fees.

Claire Evans, Marketing Director of Legal & General Investments, said: "Our research shows that children expect significant financial support into adulthood.  University fees are at an all-time high and the cost to fund a child through a three year course can cost tens of thousands of pounds."

She continued: "We believe that saving for your children's future is vital. Set against a backdrop of increased university tuition fees, it is paramount that preparations are in place to give children the very best start in adult life.  All parents want to provide their children with choice and opportunity as they approach adulthood and ensuring money is available will help ease the transition."  

Previous research from Legal & General Investments revealed that UK parents are currently putting aside an average of around GBP40 a month per child, creating a pot likely to reach GBP13,866**.

The new Junior ISA, which complements the Child Trust Fund, provides parents, family and friends with an attractive and tax efficient way of saving for eligible children up to a maximum annual allowance, which is currently GBP3,600.

Legal & General Investments has launched a stocks and shares Junior ISA which currently allows GBP3,600 of tax efficient savings each tax year. For more information visit legalandgeneral.com/investments/isas/junior-isa  

NOTES TO EDITORS

The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.

* Figures from OnePoll.  Total sample size was 1,000 UK children aged 6 to 15 years. Fieldwork was undertaken 6 February 2012. The survey was carried out online.

** Estimated using monthly deposits of GBP40 and based on growth of 5% a year for 18 years, not including the effect of any taxation or charges.

This is a stocks and shares Junior ISA, so the value of the investment may fall as well as rise and is not guaranteed. The child could get back less than the amount invested. The money is locked away until the child becomes 18 when it rolls up into an adult ISA. It should be viewed as a medium to long-term investment of at least five years.

The tax assumptions we have made are those currently relevant, but tax laws can change over time. The value of the tax benefits depends on individual circumstances.

The Legal & General Group, established in 1836, is one of the UK's leading financial services companies. As at 31 December 2011, we were responsible for investing GBP378 billion worldwide on behalf of investors, policyholders and shareholders. We also have over seven million customers in the UK for our life assurance, pensions, investments and general insurance plans.

SOURCE Legal and General