Member Article

Financial advice for parents of A-level students adds up to careful planning

DSG Chartered Accountants sister company DSG Financial Planning Limited is offering advice to the parents of students receiving their A-level results.

With many of those students checking to see if they’ve achieved the necessary grades for their preferred University course, there will be concerned parents contemplating how they can provide financial support for their child’s studies.

According to the National Union of Students, the average student expenditure is £22,189 each year. This includes tuition fees, accommodation, and living costs. For a typical three year course, that’s almost £67,000.

Independent Financial Advisor at DSG, Winston Ruddick says: “If we look at today’s 10 year olds commencing studies in 2022, they would need in the region of £82,000, assuming inflation of 2.5% which is a lot of money for parents to fund or for students to pay back if borrowed.

“The changes to the savings rate band next April will see non-tax payers, including many students, able to receive an extra £5,000 in savings income completely tax free.

“The personal allowance is set to increase to £10,500 next tax year. So for a student with no earnings that’s a total tax-free allowance of £15,500.

“This is a major boost for parents planning to help fund the costs of university with an offshore bond. As gains from offshore bonds are taxed as savings income, provided they keep within the £15,500, they won’t be taxed.”

DSG provides a range of tax, audit, and business advice, with offices in Liverpool, Bootle Southport and North Wales.

This was posted in Bdaily's Members' News section by Simon Malia .