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Investing for university

It's never too early to think ahead

If you manage to teach your children the value of money and the importance of saving early on, they will be streets ahead of everyone elsewhen they come to take their place at one of the hallowed Student Union bars around the country.

It will also give them a huge head-start if you invest now for their tuition and living costs. Remember, on average, students leave university with debts of around £12,000.

A few basic rules:

When searching for financial information, shop around.

You have a decent amount of time to allow your money to grow (if you start when she’s young) so you can afford to invest in riskier, long-term investments such as the Stock Market, property or even a private business.

The simpler the investment package, the better suited it is to you. As with other areas of life, the rule here is that the more layers of packaging around a financial product, the more expensive it will be and the less money it will make for you.

Don’t be fooled by the specially-packaged, highly-marketed ‘University fees high-growth, big money earner give-us-your-money-now’-type of investments. Financial companies come up with these because they know they can sell them and make money off of them – at your expense. Do your own thing and keep the profits for yourself.

See here for more tips.

Jasmine & Moneymagpie team
Moneymagpie Moneypedia
14.02.2008