Ruth Mitchell

Families underestimate education costs, according to new report.

Research has shown that many people in the North East are underestimating the future cost of their children’s education.

Only 6 percent of people are trying to save more money to pay for school and university fees, despite the massive increases that are soon set to come into place.

Instead, people are three times more likely to save for short-term goals, such as a holiday.

The survey, which was conducted by Newcastle Building Society, also discovered that 13% of people have helped another family member with a deposit for their first home, with ten percent paying at least half of it.

Conversely however, only 58% of individuals asked actively encourage younger relatives to save money to go towards their future education or a new home.

Steve Urwin, sales and marketing Executive at the Newcastle Building Society said: “With most universities saying they’re going to charge the maximum £9000 tuition fees every year, the impact on families finances is obviously going to be quite dramatic.

“The bank of Mum and Dad often already makes a major contribution to help younger family members meet their financial obligations, but in light of this, the fact that such a small percentage have begun to save for the rising cost of education indicates its eventual impact may not be fully appreciated.”

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