From the time a child is born, parents are completely invested in their growth journey, and will do their best to make sure their child receives the best education possible.
However, high tuition fees and inflation are some of the obstacles that might stand in the way of the best-laid education plans.
A survey, The Value of Education: High Aspirations*, conducted by HSBC in 2017, found that 27% of parents interviewed regretted not saving for their childrens' education funds sooner, while 26% felt that they should have saved even more. Meanwhile, 54% of parents interviewed would consider sending their children abroad for higher education, but 19% of parents did not know how much this would cost.
From preschool to high school, parents might have to spend up to a million dollars on a child’s education. So it's important to identify your child's education needs as early as possible, set a savings goal, and pick the right wealth management plan according to your financial situation. This will help you devise a suitable family budget, and aid in fulfulling your child's potential.
Consider these 5 questions, which will help you to set an education savings plan:
- What education plan have you drawn up for your child?University or vocational education? Graduate school?
- How much are you willing to commit?Will you be paying for your child’s living expenses and tuition fees?
- Where do you want your child to study?Local studies or education abroad? If overseas, which country?
- When do you need the money?How much time do you have before your child needs this education fund?
- What education savings plan have you prepared?Lump-sum investment or a regular deposit plan? Single asset or a diversified investment portfolio?
* The Value of Education is a research report mandated by HSBC, and is an independently written consumer survey on global education trends. It explores parental attitudes and behaviour toward childrens' education globally. The opinions expressed are highly authoritative. Higher and higher is the fourth report in the research series, and reflects the opinions of 8,481 parents across 15 countries and regions around the world.
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