How do parents save while living in a country that has the second highest tuition rates in the world?
Sep 9, 2017, 02:11 AM
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Benjamin Franklin once said, “An investment in knowledge, pays the best interest.” In a world where unemployment rates are higher than the past, it is education that opens many doors for a successful life. So can we put a price on the future of our children?
The Value of Education, a series released by HSBC, details the average spend on a child’s education, which was based on a survey of over 8,400 parents across 15 countries and territories. As one of the biggest expenses of households worldwide, the cost of education averaged over USD 44,200 globally, with the UAE ranking second with an average spend of USD 99,378, right after Hong Kong, which averaged at USD 132,161. With such numbers, it is hardly shocking to discover that the cost of education is on the increase, reaching even higher than inflation rates. In a world where 50 percent of parents fail to save for their children’s education, the dangers of borrowing to finance education costs have become a reality for some.
With over eight out of ten parents spending on education out of their own income, and over 80 per cent of parents also expected to pay for university or college costs, saving from early on can make a world of difference to the quality of education your child receives. It has been found that parents who saved regularly actually saved more than those who did not. So how does one go about creating a sustainable plan that will allow for a comfortable lifestyle even with high costs of school tuition? The answer lies in creating long-term strategies and committing to being proactive about saving early on, some starting even before a child is born.
While it is possible to decide to start saving around other areas such as on mortgage payments, purchasing a used car or being selective with additional monthly payments including phone plans or credit card bills, putting money aside for education may begin with deciding on a target amount and working towards it. Deciding on how much you can realistically save, will affect family planning and a decision on the school you will be able to afford. Next week, we’ll take a closer look at how you can save while ensuring that your child receives quality education that meets your requirements.
