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|Parents relying on grandparents to pay for school fees|
|Monday, 23 November 2015|
With private schools fees averaging £15,675 a year1 and continuing to rise at above-inflation rates, new research2 from Investec Wealth & Investment has found that a fifth (19%) of parents rely, or plan to rely on, grandparents to help pay for private school fees for their children.
According to the study, on average grandparents pay a third (33%) towards the cost of their grandchildren’s education but 19% of parents are fortunate enough to have the older generation pay over half the fees. Grandparents account for the third largest source of capital for parents looking to finance school fees behind their salary (63%) and savings/ investments (47%).
Grandparents’ largesse doesn’t stop with school fees, however; the research shows that 13% of parents whose children have gone to university or plan to do so have done so with financial help from the grandparents towards fees and living costs. As with school fees, grandparents rank third in sources of finance for university, after parents’ salaries (53%) and their savings/ investments (50%).
Chris Aitken, Head of Financial Planning at Investec Wealth & Investment said: “For many families educating kids privately is only an option if they receive a financial leg-up from the grandparents. And it doesn’t stop there; grandparents are increasingly paying towards university and even home deposits for their grandchildren too.
“While many grandparents prefer to see their money being put towards helping the younger generation get on in life, they need to ensure they have enough for themselves, particularly if they end up having to pay for long term care. Likewise, parents shouldn’t become overly reliant on their grandparents’ generosity as circumstances can quickly change.”
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