COMMENT: Can you afford to send your children to university?

By Mark Nowell, 3D Global

 

Educating children can be an expensive business, but, like many other financial commitments, there are real benefits in planning and saving early. People now travel all over the world to further their education. The most popular destinations are the UK, USA, Canada and Australia.

An overriding factor when learning overseas is the cost involved. Delaying making provision can affect not only your children’s education, but also your own standard of living. To avoid any of these problems it is vital to plan ahead.

Saving early and planning effectively can secure your child’s future.

How much can an overseas education cost?

Published college prices have risen rapidly in all sectors since the early 1980s, even after adjusting for inflation. In the USA, the rate of increase has been significantly higher for public four-year colleges than for private four-year colleges.

The increases in average published tuition and fee charges in the USA over the last thirty years have been steady:

 

Year of enrolment	Private	Public
1976-77	US$ 9,070	US$ 2,310
1986-87	US$12,375	US$2,628
1996-97	US$16,843	US$3,856
2006-07	US$22,218	US$5,836

 

These increases have been mirrored in other countries.

In addition to education and accommodation fees, incidental costs such as books, computers and even food are often overlooked by over stretched parents!

So now we know the scale of the problem looming ahead how can it be addressed?

One solution proposed by 3D Global (the Cyprus based financial services group) is to use the UltimaSave plan from Friends Provident, the UK based life and pensions provider.

UltimaSave allows a regular amount to be saved over time, building tax free capital in a range of international investment funds managed by some of the world’s top fund managers. By harnessing the power of compound investment returns, it is possible to significantly cut the total cost of funding your child’s education. The key to maximising the benefit of this type of planning is timing – the sooner you start, the less you will have to save to achieve your planned savings goal.

In addition, UltimaSave has a built in level of life insurance which not only ensures your child’s education in the event of your early demise, but can also mean your savings qualify for Cyprus tax relief.

If you want your child to have the best possible education you need to start thinking about how to fund it now, any delay could put your plans in jeopardy and adversely affect your standard of living. 3D Global has extensive experience in helping its clients manage their finances and plan for these needs.

 

 

* 3D Global Insurance Advisors, Agents & Sub-Agents Ltd is approved and regulated by the Cyprus Insurance Companies Control Service (ref. 1941 and FOS4), Tel. 25828292, e-mail [email protected], www.3dglobal.com .