Huge gap between student and parental expectations of cost of university, according to new study

News - Savings

Written by Ray Clancy

Thursday, 12 August 2010 08:35

Student and parent perceptions differ widely on how much financial support parents will provide for university, research shows.

With the start of the new university year now only a month away, a study from Barclays has identified a huge gap between parent and student expectations, revealing that students underestimate their parents’ willingness to help them financially. Over three quarters, some 77%, of parents are willing to provide financial support to their children, whereas only 43% of students are expecting help.

The findings show that students believe their parents will contribute just over £4,000 to their university costs while their parents estimate this figure to be over double that at just over £9,000.

Although the majority of parents expect to provide financial help, only 13% actually intend to completely fund the entire cost of university. Students are more than willing to take responsibility for these costs with 83% of students expecting to have a part time job whilst studying, rising to 88 per cent during the university holidays. Some 38% of students also say they have already saved to pay their way.

However, of those students who are expecting financial help from parents, nearly half believe their parents have been putting money aside for years to help get them through university.

But only 29% of parents say they have actually saved for this cost. In fact nearly half, 47%, of all parents say they will sacrifice purchasing a new car, home improvements or a holiday to fund the cost, while over a quarter, 27%, say they will be cashing in investments and savings originally set aside for something else.

The research indicates that almost two thirds of parents feel their children have accurate expectations with regards to the actual cost of university. Parents expect their children to take some responsibility, with three quarters saying that they will sit down with them to talk finances before they head off.

However they may be wasting their time, with one in ten students saying whilst their parents may try and talk to them about money they are not interested or simply won't understand.

The research also indicates that it takes parents an average of five years to pay back the cost of a typical three year university course of £25,000. With the average family having two children going to university, this is likely to be an even greater expense and responsibility for today's parents.

‘It is great that students are being responsible and taking the costs of university seriously. We are keen to give students as much support as possible through what can be a financially stressful time, for example a student bank account that gives them control of their money,’ said Andy Harris, head of current accounts at Barclays.

The banks has also launched an online community site, 100 voices, which provides lots of information and support from other students, graduates and experts to help with adjustment to university life. It is written by students, for students.

This follows on from the new student package launched last month with an interest free overdraft facility up to £2000, a free SMS service to help students keep on top of their finances, and a range of exclusive mobile phone, broadband and laptop incentives.