Saving for a future: plan for education

Statistics show that over their working life someone with a bachelor’s degree in the USA will earn, on average, almost twice as much as workers with a high school diploma. Source: US Census Bureau

 As a parent you worry about your children. You have high hopes for their future and want them to do well.  One of the best things you can do for them is to provide them with a good education. This will give them freedom to succeed in life and greater opportunities for achievement and happiness.

We all know that school fees in the UAE are expensive, although many have employment packages that include the fees which lightens the burden. Education these days however, doesn’t stop at age 16 or 18 and these days the majority of young people go on to some kind of tertiary education. The cost of this is increasing and many young people finish their education with considerable debts. Not an ideal situation for anyone starting out in the world. So how do you avoid the headache of paying for their education without getting into debt?

The best solution is to plan for this well ahead of time. Parents can help their children to receive a good education, as well a reducing the future burden on themselves, by planning for these expenses. Not only are there likely to be tuition fees, but factor in rent and living expenses and the outlay could be very high indeed.

The younger the children are when you start the better as investments have time to grow and ride out the vagaries of investment markets. Ideally this should be for at least a 10 year period, but plans allow you to take withdrawals if monies are required sooner and have flexibility.

When I speak to people about savings plans one of the concerns related to the costs in running the plan – the charges from the insurance companies.  The good news is that Holborn has exclusive access to a new plan from a major offshore provider with much reduced and thus highly competitive charges.  The Freedom 10 plan is designed to run for a period of 10 years for a minimum monthly premium of $750 (or £500/€500) and for all plans taken out before the end of 2011, there will be no initial charges for the duration of the contract. This is a huge saving and makes this the best value for money plan on the market.

Why not take advantage of a great offer and start planning for your children’s futures now? Contact me to make a no-obligation appointment  keren@holbornassets.com

And if your child doesn’t go to university after all? Well, then you have a large pot of money to put towards a first home for them or to keep and spend on yourself! Whatever happens the monies saved and invested can be put to good use.

Even if you don’t have children , you can still take advantage of this great value plan for your own future.

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About financialuae

A qualified and experienced Independent Financial Adviser based in Dubai, UAE. Professional and ethical. Freelance writer on personal financial issues & the On Your Side column in The National. Regular radio guest. Senior Partner at Holborn Assets LLC, Dubai, UAE.
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