Providing a Better Future for your Children
One of the most common desires shared by parents is to give their child the best start in life. And perhaps the most tangible steps a parent can take in that regard is to provide the best possible education. For instance a recent study by Graduate Labour Market Statistics showed that university graduates can expect to earn £10,000 a year more than those that received no further education or training beyond school.
Planning to provide for university fees is one of the simplest financial objectives a parent can plan for. Irrespective of the multiple changes in employment contract a parent might encounter over the years, the expectation that a child might want to attend university at age 18 is likely to remain pretty constant.
Fortunately providing a suitable sum of money at the appropriate time can be fairly straightforward.
Reasonable assumptions will need to be made for the following unknowns:
- The university course might the child want to study?
- In which country? What city? Choice of University?
- A 3-year course? A 4-year course? Medicine? etc.
- Should the parent plan to cover tuition fees alone? Accommodation? Living expenses? Flights to and from that country?
Although the precise answers to these questions probably won’t be known at an early age however one thing is certain: There is a strong probability that 18 to 20 years after a child is born, there is likely to be a requirement for substantial funds to cover education and associated expenses. Therefore it is logical to plan early for this objective.
Tips for paying for Education
Tip 1 – A Guaranteed Savings Plan is a particularly useful tool to provide adequate resources for these requirements. Having made reasonable assumptions for the questions above our advisers can recommend a program that will guarantee to provide sufficient resources at the time required.
Tip 2 – Consider discussing these requirements with grandparents. They will often be happy to assist with planning for education costs.
Tip 3 – Consider providing life assurance cover to secure the goal of educating a child even in the event of the death of the breadwinner parent.
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