Education is the dominant deciding factor on a child’s wealth prospects and future. Globally, the UAE has the second-highest proportion of parents with at least one child in paid for education of any kind (93%), second only to India (96%); and 87% of parents around the globe help fund their children’s education1. We offer various Education Planning solutions that can help you protect your children’s futures by protecting your wealth. Here are 10 common questions to consider when planning for your children’s education.
1. Do you have a saving scheme for your children’s education?
As a parent, you want your child to have access to the best possible education you can give them. But are you aware of the real costs? On average, parents spend USD 16,290 on a child’s undergraduate education alone1 and this funding needs to be in addition to day-to-day expenses, as well as traditional savings for occasions, holidays or retirement.
2. How many children do you have or plan to have?
A growing family is so exciting, and we all want to give our children as many opportunities as possible. As your family grows, so does the necessity and financial stress of ensuring that each of your children has access to an education fund that can support all of their futures and careers equally.
3. How many years do you have before your children go to university?
When our children are young, many of us think that planning for their university education can be done at a later stage. As with any investment, the earlier you start to plan, the more time your money has to grow, decreasing your premiums for every year that you plan ahead. For example, if you were to invest $1,450 monthly for 18 years, you’ll be entitled to $500,000 to support your children’s dreams.
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4. What countries are your children considering studying in?
In today’s competitive market, your child’s education has never been more important to ensure they thrive in their future. The three most popular foreign destinations for UAE students are the United States, United Kingdom and Canada1 and they are often in the most expensive regions to live. The average annual university cost is $24,000 in the United States, $17,860 in the United Kingdom and $10,730 in Canada2. Our Education Planning solutions can help you achieve your child’s dream of an education abroad.
5. Have you considered the holistic costs of studying abroad?
Educational costs are one aspect, but if your child studies abroad have you considered the other costs such as accommodation, travel and day-to-day expenses? For example, the cost of living (including education) in the UK, US and Canada can vary from $20,400 to $31,3001.
6. Have you considered the program and field your child may chose for their education?
We all want to make sure that whatever field our children end up choosing a career in, is fulfilling and matches their natural abilities, and also results in a stable financial future. Employers are increasingly seeking out graduates based on the prestige of foreign degrees, especially in specialized fields. As a result, more than four million students enroll in higher education outside of their home countries1, and these programs can often be priced higher than you would expect.
7. Do you know about the future career trends and the programs?
We’re living in a technological age where popular careers today didn’t exist 10 years ago and it’s likely that this trend will continue. Specialist courses often come with a heavier price tag than traditional degrees, which means that we need to future-proof our savings plans today to provide our children with the best possible education.
8. Do you know what their program's duration will be?
We know that it’s impossible to know in advance how long your children will study for. Are you aware that the majority of programs last 3-5 years, and some may even be more? Plus, 90% of UAE parents prioritize a postgraduate education for their children1 as well.
9. Have you thought of the rising cost of education and inflation?
The costs of our own education is vastly different to what our children’s education will cost. The price of higher education is increasing almost 8 times faster than wages.1
10. Have you considered the impacts that funding your child’s education might have on your savings and retirement plans?
We want to give our children every opportunity we can, but without planning, this could come as a cost to our personal savings, lifestyles and retirement plans. 74% of parents must use day-to-day income to fund their children’s education costs and many need to make personal sacrifices for their child’s education as well. These include working longer hours (21%), taking on a second job (18%) and contributing less to their own long-term savings or investments (20%)1.
Start planning today to secure your child’s tomorrow.
Sources:
1 https://www.topuniversities.com/student-info/student-finance/how-much-does-it-cost-study-uk
2 https://www.schoolapply.com/blog/posts/2017/february/us-vs-uk-vs-canada/
1 https://www.topuniversities.com/student-info/student-finance/how-much-does-it-cost-study-uk