Finance
Planning for Your Children’s
Education
By Aaron Crotty
So how much does it actually
cost?
The average university course is a
4year term. Some can be up to 7years.
If your child was to begin university in
2015:
$30,000 per year x 4 year course =
$120,0000
If your child is to begin university in
2025:
Annual inflation of 5%
$30,000 x 4 year course = $120,000
10 years x 5% inflation = 50%
$120,000 x 50% inflation = $180,000
The real cost of student debt.
T
he most important thing as a
parent is our children right? We
will do almost anything for our
children’s well-being, no matter
what the cost. What about when our
children reach the early stages of the
adult world, is it time for them to fend
for themselves? Or as parents, do we
still adopt the same attitude. This
month’s article is an indication of what
our children can expect in the early part
of their adult life, and as parents what
we can do to ensure the best possible
start, or at least prevent the financial
burden they can possibly expect.
Wherever you are based in the world,
high quality education for your
child(ren) is a priority, but it can come
at a cost. High quality education is
one of the most precious gifts you can
give a child and it can keep delivering
benefits well into their future.
Research suggests that the burden
of a student loan results in 75% of
university graduates having to make
personal or financial sacrifices to pay
off the debt. Is this the best start to our
children’s professional life?
The
modern
world
we
live
assumes the younger generation will
automatically proceed to university
for further education. Most job
applications ask ‘what form of degree’
do you hold? As opposed to asking if
you even hold a degree. Unfortunately,
due to the supply and demand of
further education, the education
sector is fast becoming exposed as a
result.
What is the real cost of further
education?
Research has shown that in 2015
the top 6 regions in the world to be
educated are Canada, UK, Singapore,
USA, UAE and Australia. It is also no
coincidence that these regions are the
most expensive.
A study of Manchester University
has shown that the average annual
university cost in these regions is
$30,000 per year (per child). This
is inclusive of tuition fees, student
material and general cost of living. The
study also has shown that due to the
‘demand’ for further education, the
sector is being exposed with a cost
inflation rate of 5% per year.
The following statistics are based on a
survey conducted on graduates in the
United States in 2012.
40% delayed a major purchase such as
a car or home
28% put off continuing education
27% moved back to the family home to
save money
25% took a job they weren’t enthusiastic
about to pay back student loans faster
18% took an extra part time job to
supplement income
14% delayed marr