EDUCATION PLANNING
Saving for your children’s education could be the best investment you ever make
|
It’s well known that higher levels of education result in higher earnings. While
the investment required to support your children through private education or a
degree continues to rise, so do the benefits.
|
|
|
Degree holders not only have greater freedom when it comes to choosing jobs, but
they also earn USD1.2m more over their lifetime than high school graduates. Source:
www.edvisors.com August 2007 – NASFAA’s Journal of Student Aid Volume 37 No 1. Providing
your children with a first class education requires significant investment. The
costs of private and university education are continually increasing, regardless
of where you live.
|
How much is enough?
International schools in the UAE charge from USD 3,000 to over USD 16,000 per year1.
Costs have been increasing by over 15% a year2.
1Source: arabianbusiness
May 2007.
2Source: gulfnews
May 2007.
In the UK, the average cost of a three-year degree course is around GBP 38,0003.
Since the elimination of student grants, student debt in the UK is now estimated
to be a staggering GBP18 billion4.
3Source: www.webitpr.com April 2008.
4Source: thisismoney
June 2007.
In the USA, the average cost of college education (excluding living costs) is also
rising at an alarming rate:
Sector 2007- 08 Five-year % change
Two-year public USD 2,361 41%
Four-year public USD6,185 51%
Four-year private USD23,712 31%
Source: Collegeboard website April 2008.
Boarding charges and general costs such as books increase these figures further.
Due to these rising costs, many students are unable to further their education,
therefore failing to fulfil their potential.
|
The real cost of bringing up a child
|
|
|
|
Childcare and babysitting
|
USD
|
118,232
|
|
Education costs incl university fees
|
USD
|
93,129
|
|
Food
|
USD
|
32,255
|
|
Clothing
|
USD
|
24,906
|
|
Holidays
|
USD
|
26,302
|
|
Hobbies and toys
|
USD
|
19,338
|
|
Leisure and recreation
|
USD
|
13,904
|
|
Pocket money
|
USD
|
10,767
|
|
Furniture
|
USD
|
4,435
|
|
Personal and other
|
USD
|
22,957
|
|
|
|
Total
|
USD
|
366,225
|
Source: guardian ‘Lifetime
cost of bringing up child USD366,000 – and rising’, December 7 2007
|
If you want to give your children the best possible start in life, there’s no time
to lose. Choose how much, how often and for how long you wish to save. You can choose
from a range of funds from leading investment management organisations, allowing
you to build up a fund to pay for your children’s education costs. Most products
have flexibility which allows you to make withdrawals, at no extra cost, when the
time comes to pay annual tuition fees.
|
|