Few would argue that the gift of a good education is the best gift that you can give to your child. Financial planning will ensure that the necessary funds are available without compromising the parent's financial status. So, the big question is 'when should a parent begin saving for their child's education?

This really depends on how many children you have, how old they are, your financial circumstances, the cost of the education and how many years of education you will be funding. However, any parent who decides to delay saving must be aware of the potentially damaging effect on the financial outcome. This means that you will have to pay higher premiums over a shorter period of time to meet the target fees, or alternatively educate your child with a lower standard of education.

The cost of Education

As the increased cost of education is outstripping inflation, it is likely that education fees can only be met over the medium to long term through regular saving in a unit linked investment plan. These are managed funds which give growth over time, the more time the better.

Planning in advance can mean financial freedom for yourself whilst at the same time providing an excellent start in life for your child.

Example

An education savings plan for Mr X preparing for the university costs of two children currently aged seven and five will show approximate costs including inflation to be $30,000 each year. With each child attending university for three years, the total cost will be approximately $180,000. His first child is due to attend university in 11 years time so Mr X thinks he has plenty of time to prepare. What he must realise is that 11 years is only 132 months to prepare, whilst at the same time he must prepare for retirement, insurance, mortgage, cars, living, socialising etc.

Our financial consultant will illustrate to you how you can best aim to reach that target, and what returns you should expect from different funds. The longer you have the easier it is! We will search the market to find the product that best suits you and your needs. We understand that any savings plan we recommend must:

• have real growth potential
• be adaptable
• have flexible premiums
• be accessible
• have currency options
• have tax free growth

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