Youngsters start university savings accounts at age 11

11 August 2008 / by Rebecca Sargent
As former students struggle to shoulder the weight of their university debt, younger siblings are taking note and starting to save from as young as 11, The Children's Mutual has revealed.

According to The Children's Mutual, recent statistics showed that 42 per cent of this year's undergraduates will be forced to work part time throughout their studies and that 78 per cent of parents think the credit crunch will make it harder to support their children through university.

Consequently, The Children's Mutual is urging Brits to reconsider the way they think about funding higher education.

Chief executive at The Children's Mutual, David White, said: "It is becoming increasingly apparent that we need a sea change in the way that many parents and their children fund university.

"One way to stave off the financial nightmares of the current university generation could be to start saving now," he added.

However, according to the research it seems that youngsters are more clued up than their parents when it comes to student money.

The results showed that almost a third of 11-18 year olds are already putting money aside in savings accounts, whereas a third of parents realised they were not saving enough for their children's futures.

Mr White continued: "It's great to see that today's teenagers are aware of the costs involved with going to university and are taking steps independently to try and avoid the high levels of debt that are now common amongst graduates. But the average cost of three years at university now sits at £40,400 – a huge amount for any teenager to find.

"We would encourage parents and the wider family to consider saving as early as possible to help fund their children's university aspirations, Mr White advised.

"Since the Child Trust Fund was introduced, many more families than ever before have started saving over the long term and that is a very good thing for the future of this country."

© Fair Investment Company Ltd