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Millions saved for education bills.

Parents are collectively saving more than pounds 250m a month towards the cost of their child's education, research shows today. About 44% of parents claim they are setting money aside towards the cost of school or university, saving an average of pounds 36 a month each, according to savings bank ING Direct.

However, while 8% of parents are saving between pounds 50 and pounds 75 a month, just under half set aside less than pounds 25, and one in 10 parents have made a lump sum investment rather than save money on a regular basis.

About 46% of people said they were cutting back on nights out to save money towards their child's education, while 43% were buying less clothes, 34% were going without holidays and 30% had decided not to upgrade their car.

Lindsay Sinclair, chief executive of ING Direct, said, 'Clearly parents are taking the funding of their children's education seriously, with many making sacrifices along the way.

'It is encouraging to see almost half are making financial provisions for their children's future.

'We advise parents to start saving as soon as they can so that they are fully prepared for the increasing financial burdens education often brings.'

If parents saved pounds 36 a month into an account paying 5% interest as soon as their child was born they would have a fund worth pounds 12,481 by the time they were 18.
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Copyright 2005 Gale, Cengage Learning. All rights reserved.

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Publication:Western Mail (Cardiff, Wales)
Geographic Code:1USA
Date:May 5, 2005
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