kids uni fees sanity check and a question...

kevin52

You are looking at a longer timescale than 7 years. No uni fees are payable up front. It would normally be a further three years until she graduates, then she has to find a job, then she has to earn over £21,000, and then a contributions is made only on the slice over £21,000.

JimmyTheWig

kidmugsy wrote: »

I read an article recently arguing that the terms on which ex-students repay debt are fairly tolerable, and that it might be wiser for parents instead to save with a view to helping them find the deposit for their first mortgage. If you find that persuasive it would extend the horizon for your saving.

In post #7 the OP has clarified that this is a pot of money to help her daughter when she needs it. Doesn't necessarily need to be used for tuition.

kevin52 wrote: »

You are looking at a longer timescale than 7 years. No uni fees are payable up front. It would normally be a further three years until she graduates, then she has to find a job, then she has to earn over £21,000, and then a contributions is made only on the slice over £21,000.

But in any case we don't know what is going to happen to the rules on higher education funding over the next 7 years. They may move the goalposts again.
Or the daughter may decide that university isn't right for her and she may need money for an apprentiship course or something.
I'd say the OP is right to have the aim of a 7 year timescale.

needmorstuff

Voyager2002 wrote: »

But it HAS recovered! Look at a graph, and you will see the absurd highs of 2007 (and the tech-stocks bubble almost a decade before), the lows of the crash around 2008, and the steady struggle up to the realistic values of today.

I see a lot of scope for growth in the USA and would consider a Wall Street tracker... except that I think the S & P is already overvalued, and on that basis I sold my entire holding of a fund that tracked that index. I gained about 20 per cent over a year, so I'm pleased with performance but wondering where to put the money.

I would agree, maybe I dont mean recover but more - sustained sensible growth. Tech bubble - remember that one well. Only time in 15 years I didnt have a contract.

Well done on the 20% - I dont intend to be that active... the last time I thought I was a trader I lost £3k in a couple of days.

needmorstuff

kidmugsy wrote: »

I read an article recently arguing that the terms on which ex-students repay debt are fairly tolerable, and that it might be wiser for parents instead to save with a view to helping them find the deposit for their first mortgage. If you find that persuasive it would extend the horizon for your saving.

The more I think about this the more it makes perfect sense... I get another 3 years for growth - everyones a winner. I do need to look into repayment terms a bit more.

Also - I have a son 7 (daughter 11) so need to think about best thing for him. Unfortunately I cant afford to start something for him at the moment regadless of how much sense it makes.

needmorstuff

JimmyTheWig wrote: »

In post #7 the OP has clarified that this is a pot of money to help her daughter when she needs it. Doesn't necessarily need to be used for tuition.



But in any case we don't know what is going to happen to the rules on higher education funding over the next 7 years. They may move the goalposts again.
Or the daughter may decide that university isn't right for her and she may need money for an apprentiship course or something.
I'd say the OP is right to have the aim of a 7 year timescale.

Think we all agree :-) saving for kids is good.. still looking for input on original question lol.. cheapest ISA to invest in HSBC tracker funds for 7 years.

lazer

needmorstuff wrote: »

The more I think about this the more it makes perfect sense... I get another 3 years for growth - everyones a winner. I do need to look into repayment terms a bit more.

Also - I have a son 7 (daughter 11) so need to think about best thing for him. Unfortunately I cant afford to start something for him at the moment regadless of how much sense it makes.

Personally - I would start saving for both your children now, they could need the money at different times in their lives.
When the time comes, give the first child that needs the money, half of whatever you have saved, when the time comes that the second child needs the money, give them the same amount - and spilt any additioanl amount between both (or keep and spend on some luxury for yourself!)

JimmyTheWig

needmorstuff wrote: »

still looking for input on original question lol.. cheapest ISA to invest in HSBC tracker funds for 7 years.

I can't answer that, I'm afraid as (a) I have no idea and (b) I wouldn't be looking at anything other than cash (at least for most of it) for a 7 year investment. Sorry.

jimjames

needmorstuff wrote: »

Think we all agree :-) saving for kids is good.. still looking for input on original question lol.. cheapest ISA to invest in HSBC tracker funds for 7 years.

I think both nicknameless and I had given answers to this and you'll be hard pressed to find them cheaper at the moment.

Direct to HSBC
Cavendish Online

xylophone

Does your child qualify for the JISA?

kidmugsy

needmorstuff wrote: »

Also - I have a son 7 (daughter 11) so need to think about best thing for him. Unfortunately I cant afford to start something for him at the moment regadless of how much sense it makes.

Do it the old-fashioned way: daughter graduates and then works like mad to help fund little brother through university. My own father could remember a family who did it like that in the thirties for three sons.