Going to university is now a lot more expensive in the UK than it used to be. With tuition rates set to rise across the board many people decide not to go to university. Those parents who recognize the value of a university education for their offspring may attempt to mitigate some of the costs by setting up a college fund early in the child’s life.

College funds were never a priority for most British students and their families because of the grants and free tuition that operated in this country until ten years or so ago. When the universities were turned into businesses rather than educational charitable trusts it altered completely the face of higher education in the UK.

Although some students will pay a lot less and may even receive a small living grant, the student loans system means that most graduates start work with around twenty thousand pounds worth or more of debt. It was always thought that college funds were largely an American phenomenon but nowadays that appears to be changing rapidly.

Even though parents may be juggling any number of other financial commitments, an increasing number now see saving so that their child can go to college and get a better education as a priority. In a survey of American families it was revealed that many of them had debts that they were trying to pay off, but saving for their child’s education took priority over everything else.

Some parents are so convinced of the fact that their child’s education comes first that they are paying less into or borrowing from their retirement funds in order to start a college fund for their child. The problem with the student loans system both in America and in the UK is that the student leaves college with a massive debt that may not be paid off before they reach their forties.

Those families that have college age children and younger ones who hope to go to university in the future may have an even more complicated balancing of their finances in order to achieve this for their kids. A growing number of financial experts are questioning the act of altering retirement plans in order to have a college fund because there are scholarship opportunities as well as tutition funds – the thing is that while you may be able to borrow for college, you cannot do so for your retirement.

For an increasing number of parents on both sides of the Atlantic, saving for their children’s college education is a financial priority. Some parents are even putting their own financial future at risk by changing their retirement fund plans in order to save for college. It may be hard to see your child working their way through university rather than being able to draw on a college fund, but it might give them a better sense of the value of money if they do so.