£175 a month for your child to come out of university debt free

As the nation’s 18 year olds receive their A-level results tomorrow, many will be looking forward to going to University. They will be less enthusiastic about the resulting £50,000 debt they are likely to face when they graduate in three years time. While it may be too late to reduce this burden for those about to start further education, Fidelity Worldwide Investment believes now is a good time for parents of younger children to think about how they can start to prepare.

Tom Stevenson, Investment Director, Fidelity Worldwide Investment, comments: “The Junior ISA is a great way of spreading the cost of university across the first 18 years of your child’s life. It will be a lot easier to fund a university place for your child if you start early rather than trying to come up with a lump sum later down the line.

“Fidelity calculates that an investment of £175 a month could provide the estimated £50,000 to cover the cost of university for your child (with a few hundred pounds left over so they can buy you a thank you treat when they leave home!)*.

“Even if you only put aside £50 a month, the magic of compounding means that after 18 years you could have built up a fund of nearly £15,000 which would make a decent contribution to the cost of further education.”