It seems that tuition continues to increase every year, forcing young students and their families to struggle in order to receive a solid education. As the tuition fees of up to £9,000 per year are now in place and seem to only be on the rise further, many grandparents are finding ways to out their grandchildren with tuition costs as much as possible. For many retirees, helping out their grandchildren is something they want to do as much as they can. However, it can also be a burden on those retirees and pensioners who are living on a very fixed income. Some of the money given to family could be used to do all of those activities that can only be done during retirement. This could include vacations, trips to see family and friends, and day activities. Many grandparents are forfeiting the things they’d like to do during their retirement just so they can help their grandchildren with tuition costs.
There is no denying the fact that higher education has now become extremely expensive, especially when you consider the fact that up until very recently this was free for many people. Not only is education expensive but it is also becoming a necessity. It is difficult to get any kind of higher paying job without a solid education. However, with the increasing costs, this kind of education may now be out of reach for many students. This is when many grandparents try to step in and help. If in a good financial position, grandparents can help rather easily. If not in a good financial position, this kind of financial burden can make everyday life more of a struggle. Many grandparents do end up looking into some financing options to help ensure that they have enough cash on hand to both sustain their lifestyle and to help their loved ones. Equity release plans are some of the most popular financial products for retirees in this position. One of these plans can help free up the equity already built up in their property and release it as cash. This cash can then be used for whatever is necessary, including everyday expenses or tuition.
While grandparents are seemingly trying to help their families more, it could be argued that they aren’t expected to do so. They have worked their entire lives to save up for retirement and many of them hope to spend their non-working years on vacations or doing fun activities that they couldn’t do while they were working. Once they have finished raising their families and going to work every day, they deserve to relax and have a bit of fun. However, times seem to be getting increasingly difficult for young families, especially when you add education expenses on to increasing expenses in every other aspect of daily life. The reality is that most parents do not have the cash available to pay for such expensive tuition fees. So, while many students would like to take on the debt themselves, grandparents are stepping in to offer some financial relief.
Deciding who should take on the debt to pay for education can cause a real strain in most families. While some would argue that the student should pay it back once they have received their education and have a higher paying job, the reality is that they will end up paying more back in the long run and it may be some time before they find a high paying job. Secondly, parents are often burdened with paying for their children’s education. However, this can be an incredible financial strain depending on how many children are in the home. This can only be exacerbated by the idea that every other expense seems to be increasing at the same time. It is costing more to feed their children, clothe their children, and now educate their children. At some point, there will come a time when there simply isn’t any more money left to go around. So, grandparents offer some relief to those who need it. In the end, it is the personal choice of the grandparent to decide how much they can contribute, if anything and it is their personal choice if they want to forfeit some of their retirement activities in order to help pay for the education of their grandchildren. They do have some financing options available to them if they choose to help their families pay for tuition. However, they should do their research to find the right solution for their particular financial situation and they should spend a good deal of time deciding if they are making the right decision for themselves as well as their family.