Survey: Two-thirds of parents financially support their children in university

TALLINN - A survey commissioned by Citadele bank reveals that approximately two-thirds of Estonian parents financially support their children attending university. Of these parents, about half provide up to 300 euros per month, while the other half gives at least 300 euros per month.

In the survey, parents were asked to estimate the monthly financial support they provide to their child currently in higher education. The results showed that about 67 percent of respondents offer financial support, while approximately 29 percent stated they do not provide any financial assistance.

According to Edward Rebane, Head of Baltic Retail Banking at Citadele, a child going to university often becomes a budgetary issue for many families, especially if the young person moves to another city or even country to study.

"In addition to choosing a field of study and an institution, starting higher education often leads to a shift in the family budget, something that is frequently not anticipated well in advance," noted Edward Rebane, Head of Baltic Retail Banking at Citadele. "Even students living at home may need regular support from their parents, as it might not be possible to cover all expenses while focusing on their studies."

Half of supporting parents provide under 300 euros per month

Among Estonian respondents who provide financial support to their children in higher education, about half give up to 300 euros per month, while the other half contributes more than 300 euros monthly. Approximately one-third of these parents provide at least 500 euros per month, and about one-fifth give at least 1,000 euros per month.

Therefore, supporting a university student can be a significant additional expense, or investment, for the family, which should be planned just like any other regular outgoing. "If financial aid to a young person means a monthly transfer of 100, 300, or 500 euros, this becomes a significant fixed cost that impacts the family's monthly budget and can reduce their ability to save. For this reason, it's wise to discuss at the very beginning of the academic year which expenses the parents will cover, which portion will be the student's responsibility, and how long this arrangement will last," Rebane explained.

A clear agreement helps avoid situations where the support depends on the child having to ask for it each month or on the parent's immediate financial situation. When the amount and purpose are agreed upon, the young person can also better plan their own finances. "A student in higher education is often in a position for the first time where they must decide how to make ends meet for the month. Parental financial assistance can be necessary, but it's just as important that the young person learns to make choices within that budget," Rebane remarked.

For parents whose children are not yet in higher education, it is beneficial to start saving for their child's university education early. "Saving and investing for children's future is especially important when there are several children of a similar age in the family. This allows parents to support their children in university without having to cut back drastically on other expenses," Rebane stated.

Support isn't always just a bank transfer

Support for a student can come in many forms. Some families transfer a fixed sum to their child each month, while others help with specific costs, such as housing or groceries. In some cases, the student lives at home, and financial support comes in the form of the parents covering most of the daily living expenses.

"It is important for the family to discuss these arrangements. If a parent pays the rent, helps with food costs, or provides a fixed amount for monthly use, the student should know what it is intended to cover and for what they are personally responsible. This fosters a better understanding of both the parents' financial capacity and the student's personal budget," Rebane said.

The survey commissioned by Citadele bank was conducted by the research firm Norstat. In each of the Baltic states, 1,000 people were surveyed.