Parents cutting pension contributions or taking second jobs to send their children to uni

Nearly half of parents have experienced financial strain supporting their child through university, with many cutting back on their own spending, savings and retirement plans, while others take on second jobs.

New research from Nationwide reveals the financial sacrifices parents are making to help their children through university as the cost of student life continues to rise.

Parents Sacrificing Their Own Financial Futures

The research, which surveyed 1,000 UK parents of prospective, current or recently graduated students, found that parents are contributing an average of £435 a month towards their child's university costs.

That equates to more than £5,200 over a year, highlighting the scale of the financial commitment many families are taking on alongside their child's studies.

The findings show that 82% have made some kind of sacrifice to help fund their child's time at university.

More than a third (37%) have reduced spending on holidays or days out, while 34% have cut back on their own social or leisure activities and 33% have reduced everyday spending, such as eating out, clothes or subscriptions.

But for some parents, the sacrifices go much further. 15% have taken on extra work or a second job to help meet the costs of supporting their child through university, while almost 3 in 10 (29%) have used savings that were intended for something else.

And for some, the impact is reaching into their long-term financial plans. 13% say they have reduced their own pension contributions, while 10% have delayed their retirement to help support their child through university.

Almost half (48%) say the cost of supporting their child through university has caused them financial strain.

Parents Steering Children Towards Cheaper Universities

The financial pressure is also influencing decisions about where children study.

More than half of parents (53%) say the cost of living in a particular town, city or area influenced their opinion on where their child should study. For 39%, this went further, with parents actively trying to influence their child's choice of university because of local living costs – whether by encouraging them towards a cheaper location, discouraging them from a more expensive one, or both.

More than 4 in 10 parents (42%) have encouraged their child to live at home or choose a university close enough to home to save money. For 22% of all parents surveyed, this worked, with their child staying local or at home as a result. For a further 20% of all parents surveyed, however, their child moved away regardless.

Cost pressures can also create family tension, with more than a quarter of parents (26%) saying they have or expect it to conflict, with where their child wants to study.

Fred Powell, Head of Current Accounts at Nationwide, said:

"University is an exciting next step, but our research shows the cost can affect the whole family, with many parents making significant sacrifices to support their children. Everyday budgeting and making the most of deals can help hugely, whether you are a parent or a student. Our FlexStudent current account has an interest-free, fee-free overdraft, and we're currently offering a cash incentive and Just Eat vouchers on top. We also have budgeting features in our app to help make life a little easier.

"Meanwhile, we're relaunching our popular FlexDirect current account, offering customers the potential for up to £470* of maximum potential value. For parents who are helping to meet the costs of university, making their own money work harder can be an important part of managing the wider financial pressure."