Any parent would want to give the best education for the child. It determines how well they prosper in life. Education opens doors and presents a world of opportunities to excel. So, as a parent, you are inclined to choose the best child education plan. So, this blog will list 5 questions you must ask while planning your child’s education.
The education landscape
Education is very vital for a child’s future growth and wealth prospects. UAE has over 93% of parents with at least one child engaged in paid education. This number is the second-highest globally. India leads the list with 96%. Almost 87% of the parents fund their child’s education.
So, every parent needs to secure their wealth to provide financial help for their children. How would you do that? Well, ponder over these questions.
1 – Is there a savings scheme for financing your child’s education?
There is no doubt you will do anything it takes for your child. It includes giving them the best education. However, take some time to assess the cost of it. Would you be able to keep funding them until they graduate?
In a study, it was found that parents spend USD 16,290 just for the undergraduate program. Hence, as a parent, you should provide this fund in addition to the daily expenses of your family. So, it’s best to have a savings scheme in your mind.
2 – Do you know the impact of your child’s education on your savings & retirement plan?
The best education might come at a cost if you don’t plan ahead. There should be adequate savings to fund your children until they are self-sufficient. Around 74% of parents use the daily income for their children’s education. Sometimes, they even cut off portions from their own savings and retirement plan in UAE.
3 – Did you factor in the inflation and cost of education?
A study observed that the cost of education is rising 8 times faster than salaries. So, even though your savings might look sufficient, inflation can turn that around. With the rising inflation and education cost, you may have to spend more to get the same level of education.
4 – How many years are left until your child goes to university?
You might think of postponing your child’s education because they are yet to grow up. But, time flies! It’s always the best thing to start early. This is true not only for education but also while choosing the best insurance in UAE. For example, if you start saving $1450 every month with an interest rate of 5% for the next 20 years, you would have a sum of $596,000 at the end.
5 – How long will your child study?
It can be difficult to know the duration of your child’s education. Generally, all programs last 3 to 5 years. Based on the program, this number can increase. It is observed that 90% of parents in the UAE want their children to get a postgraduate education. Hence, you need to factor in the years of education while saving.
Start planning your child’s education from today. Get expert advice in financial planning from Life Insurance Bazaar.
