09 June 2003
Nearly half of Britons (45 per cent) would pay for their children to get through university if they could afford to do so, according to Alliance & Leicester’s Wealth Tracker Index.
However, the survey showed that just 14 per cent said that they would be prepared to pay the deposit on a child’s first house when they reached 18.
Despite the average wedding now costing up to £12,000, weddings feature low on parents’ priority lists, as just 5 per cent cited paying for their children’s wedding as a priority.
One in ten people claim that they would like to buy their children their first car when they reach 18 but only four per cent of parents said they would be willing to fork out towards a gap year.
Alliance & Leicester points out that young people are now facing a difficult choice. They must either prepare themselves to face large loan debts or give up on their dream of higher education.
With over half of parents unwilling or unable to pay for their children’s higher education, recent figures from the NUS demonstrate that many people are put off going to University by the fact that they could fall into debts of up to £20,000.
Paula O’Reilly, Product Manager for Investments at Alliance & Leicester commented, ‘Many young people struggle financially – whether it’s being faced with years of paying off student debt, getting onto the housing ladder or simply buying a car. Our research shows that most parents would love to help their kids financially, but not all are in a position to do so.
‘However, many could easily help out by saving small and regular amounts each month, ideally starting when children are young. Simply saving or investing the child benefit allowance could build up a nice little nest egg for when the child reaches 18. ‘
Nearly one in four respondents (23 per cent) claimed they would like to open a savings account with a lump sum for their children when they turn eighteen.
As part of its quarterly study, Alliance & Leicester’s eighth Wealth Tracker Index asked a representative sample of 2,000 Britons what they would most like to do for their children when they reach 18.