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Most parents want the best start in life for their child(ren). Of all the benefits you can provide, none has a more lasting value than a good education where your son or daughter will be happy and successful. And in today’s increasingly competitive world, where higher education is seen as the key to success, it is natural that we should want our children to make the most of their learning opportunities. However, school fees have steadily risen over the years and the cost of good education is a major expense. Therefore, planning in advance to make sure you have adequate funds to meet these costs makes economical sense, especially if you have more than one child. Making the right financial arrangements today will mean that the decision whether to go on to higher education can be decided on ability, not financial standing. For more information and details of our amazing cash incentive offer, please
It is a fact that good education will cost you (the parent) money. Your future net disposable income could be significantly diminished by a heavy school fee commitment and you may have to compromise your own financial goals or lifestyle. However, planning in advance can mean financial freedom for yourself whilst at the same time providing an excellent start in life for your child.
The problem lies in the spiraling costs. For example, average male Boarding fees typically cost £3318 in 1995 and have risen to £4492 in 1999 (source ISIS annual Census 1998). My own fees for my children at Kelly College (www.kellycollege.com) are over £8000 per term not to mention all the extras. There was an article in the Sunday Times stating that UK school fees would surge by 12% in September ’03 – this is four times the rate of inflation! It goes on to state that parents with a one-year-old child would have to stump up a total of £273,193 over the next 10 years in order to send him or her to a private school. I am not even considering the University/College costs and most Students/Parents run up huge debts over this period. Poor Students spend the eary years of their professional lives repaying debts!
The sooner you realize the inevitability of school and higher education fees, the sooner you can start planning for them financially. Here is an example of what you can do to meet or at least mitigate the cost for when the school fee bill arrives.
Mr. and Mrs. Patel would like to send their son to University in the United Kingdom in 12 years time. If we assume inflation to be rising at 3% then the fees required (approx) in future will be £25,663 in year one and £26,433 and £27,226 for the remaining years. The total fund requirement would be £79,332 and by saving £300 every month now they should reach their target. This is a simple example but it does identify the need to plan sooner rather than later.
Similarly, we can include important additional cover like Life and Critical Illness cover if required. Using the example above, if Mr. Patel were to die or have a terminal illness over the next 12 years, this loss of income would seriously affect the family and impact the ability to afford the education costs. However, if Mr. Patel had selected some protection then the benefits would be paid to the school fees plan and thereby securing his children’s future even in the event of his demise.
Not everyone has the disposable income to start planning immediately so you can elect to choose a low start option. This allows you to get a plan in place and the option of increasing the amount later when your circumstances allow. We always recommend that you choose a level of saving that is comfortable to your present financial circumstances and one that offers you the flexibility as your life cycle changes. It is worth obtaining a detailed quotation so you can see if you are above or below the right level of saving. Most expatriates will save more when they are overseas and then reduce the amount should they return to a taxable environment or one offering less salary.
The main point we are making here is that we parents should do something towards meeting this impending cost. The longer we put off such decisions the more expensive the solution becomes. We know at Globaleye that the biggest hurdle to most people sorting out their financial planning is apathy. So, in order to help get the ball rolling and to give a kick-start to your child’s education plan we are offering $250 for every application we receive for the month March and April. Don’t delay, |
