Many parents worried about student debt remain inactive

27 July 2005
Over 12 million parents are concerned about the amount of debt their children will accumulate after university, but only 46 per cent of them are doing something to save up for the expenses.

A recent report from Fidelity International shows that only 35 percent of parents have saved any money for their children's education.

With debt upon graduation averaging about £13,000 along with incoming top-up fees of up to £3,000 each year, the forecast is as grim as ever.

Fidelity believes that a £50 monthly deposit over 18 years into a WealthBuilder Target Fund would result in a £16,550 return that would seriously aid in debt reduction.

These types of funds are frequently adjusted, with the equities and bonds inside the account becoming less risky as the child gets older and needs the money.

David Cowdell of Fidelity International said: "A good education is one of the most valuable assets you can give a child and putting a little aside each month will ease the burden for parents and children."

To read more about savings accounts click here .


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