World Savings Day is promoted all around the world, the idea of the day is to save money in order to gain a higher standard of life and to secure the economy.
During the 1st International Savings Bank Congress which took place in Milan, Italy the Italian Professor Filippo Ravizza declared the 31st October as World Savings Day.
As a company who is committed to children’s savings, we have gathered some costs of key events and opportunities your child may be faced with by the time they reach adulthood, and looked at ways in which you can save on these costs.
You don’t know what path they may choose once they leave school however if your children decide to further their education at university, one thing is for sure it will cost.
Based on today’s Student finance calculator, which provides a quick estimate of what student loans, grants and bursaries your child could receive, they could get a tuition fee loan for £9,000, and a maintenance loan (covering accommodation and living expenses) for £5,906 each year. Over an average 3 year course this could leave your child with a debt of over £44,718, and that’s based on today’s prices, which could increase in the future1.
In a recent survey carried out by The Children’s Mutual Parents’ Panel, 72% of parents said that they will be contributing towards the cost of putting their children through higher education, with 14% willing to pay all of the costs.
Learning to Drive
Another key event for the majority of teenagers is learning to drive. Having an idea of how much this can cost will help with planning for one or multiple children learning to drive. Here is a breakdown of the costs2:
- Provisional Driving Licence £34 online (£43 by post)
- Lessons £1,128
- Revision book, DVD and Highway Code – £25
- Theory test – £23
- Practical test + 1 hour preparation – £86 on weekdays before 4:30pm, £99 otherwise
In total, learning to drive costs around £1,320, however the number of lessons they may need and amount to pay will vary. This amount doesn’t include buying a first car, paying tax or getting it insured. This could bump the total up to around £5000.
Moving out of the family home
The expense of moving out of home for a young adult can be a financial burden; private tenants typically pay £704 a month, which is 43% of their wages (Metro, July 2015). This doesn’t include the cost of any deposits. An article from The Guardian website (January 2015) stated that first time buyers will need an average deposit of £29,218 to buy their first home.
Whilst this article has focussed on costly events in your child’s life above all, you will want to look back on your child’s journey to adulthood knowing that you have provided them with lots of fun memories as well as equipping them with skills for their future. Of course, your child’s journey to adulthood will be full of surprises and joy despite the cost. Why not celebrate World Savings Day by making a contribution to your child’s savings, or even consider opening a Junior ISA for those children who do not already have one. It all helps towards their future, whether they want to further their education at university, use this towards a deposit on a first home, or to learn how to drive.
1These figures are based on a course started during 2016-2017 as a full time UK student, living and studying in London, and a degree which is not studied in dental, social care or teaching (gov.uk 2015).
2Based on the Driving Standards Agency’s recommended average of 47 hours of formal lessons, and on the AA driving school’s average of £24 per hour.