What could be more important than equipping our children with the very best prospects for life?
Attending a prestigious University is not just about bestowing upon your child greater future earning potential; a solid University Education will empower them to choose exactly what it is that they want to do in life. Being empowered and able to choose our destiny makes for a content and satisfied life.
Because of this, planning for our children’s future University Education Costs should feature highly within your overall, holistic, financial planning expat or otherwise.
As an expat effective planning for future education costs may be of even greater importance as your career may mean that your children will travel back to their country of origin of which you may no longer be eligible for local University Fees. For example, in the UK, if neither parent has been resident in the UK for at least six months before their child begins a University course, they may be liable for international University Tuition fees which will be considerably higher than the local domestic fee rate.
The real issue with University, and higher education costs, is that they are rising at a rate much greater than inflation. Why? This is principally down to supply and demand, with demand for higher education rocketing in recent years. Such a rise in demand has come, from amongst other areas, the emerging markets. As more and more families from Asia and Africa break out in to the realms of the middle classes there is an, understandably insatiable, appetite within this ‘recently rich’ to equip their children with the very best start in life. This surge for higher education has had the affect of fees soaring way far and above any inflationary increase.
Of course tuition fees are not the only expense to be considered when your children attend university. As well as the cost of fees the following must also be considered:
- Living and accommodation expenses
- Books and other study materials
- Society and other membership costs
- Travel to and from family home (international flights)
If you have more than one child then planning for this upcoming cost becomes even more important. Attempting to ‘scrabble’ this money together a few years before they attend University is nothing any parent would like to face.
It needn’t be this way. By putting in place an effective, tax efficient, wealth accumulation investment plan you can address all the dreams and aspirations that you have for your children, with a much greater level of ease.
Please also remember that you need to make sure that your family will be able to continue to meet education costs if you are made unable to work through disability or accident or if you should die before they reach university age. You need to make sure that your family will be able to continue to pay for school fees even if you can’t by having enough insurance to cover the entire period of their University education.