In every family with children, there comes a point in time when crucial decisions must be
made about the education of those children. This situation is even more complex for those
families who choose to live overseas. Parents often ask themselves where they want their
children to be educated, where are the best or most suitable schools and teachers for their
children located, and what kind of education they want for their children to give them the
best possible platform in life. After these questions are answered, parents are faced with
the final, but most important, question: how much is it going to cost and how much do I
need to save?
Undoubtedly, parents want the best for their children, and that includes education.
However, the costs of education can sometimes come as a complete shock for parents. The
key question posed by parents to financial advisers is: can I afford the best education for my
children? Thankfully, this is a question that can be answered by an honest, transparent and
discerning discussion with a qualified, knowledgeable and seasoned financial adviser.
The first step in securing your children’s education means setting aside funds for a defined
period of time. This process doesn’t have to be confusing or arduous, and an experienced
financial adviser will help with this. Typically, some proportion of your disposable income
will be redirected into a regular savings plan. These types of saving accounts, specifically for
parents who want to save for their children’s education in an uncomplicated manner, make
budgeting easier and eliminate the possibility of forgetting to set aside money for the
education fund. These regular savings plans redirect cash towards a “pot” of money,
meaning that money has already been set aside when it comes time to shell out for school
fees, post-secondary education or any other education-related expense.
Our professional and empathetic financial advisers are here to help you carefully plan for
your children’s education and general savings goals by looking at the options available – and
to make the best choices for your family. When you start setting aside funds for your
children’s education, this is the best long-term commitment you can make towards securing
their future.
So, just what are the costs of education for children today? Below, we’ll summarize the
amount of capital needed for school costs in some of the most popular countries.
Costs of Education
United Kingdom
In recent years, the cost of studying in the U.K. has risen—for both international and home
students. International undergraduate tuition fees range widely, starting from £10,000 and
going as high as £38,000. The average cost of studying in the U.K. sits at around £22,000 per
year at the minimum, plus living costs will be much higher if your child is studying in London,
according to the Reddin Survey of University Tuition Fees.
United States of America
The U.S. remains the top choice of country for international students worldwide. However,
that popularity comes at a cost – a very high dollar amount. According to HSBC’s 2018 report
‘The Value of Education,’ the U.S. ranked among the most expensive places for international
students to study. The same report noted that the average international student spent an
average of US$99,417 during the course of the undergraduate degree. Costs will also
depend on what kind of post-secondary institution your child is studying at. For top-tier
universities, many of which are private and for-profit, school fees plus living costs could
average around US$60,000 per year, according to topuniversities.com. Still, public
universities in the U.S. have much lower fees. State colleges for instance, charge an annual
$26,290 in school fees for non-state residents.
Canada
Canada has also emerged as a popular destination for international students’ post-
secondary studies. While the costs of studying in Canada aren’t as high as in the U.S., tuition
fees for international undergraduates grew by nearly 8% in 2019-2020 (compared to a 5.3%
drop for domestic students), according to topuniversities.com. On average, an international
student pays CAD$29,714 for annual school fees, according to Statistics Canada’s data from
2019-2020. Canadian student visa requirements stipulate that students must hold at least
CAD$10,000 in their bank accounts, but the cost of living in major metropolitan cities like
Toronto and Vancouver are considerably high.
Australia
Australia, like Canada and the U.S., has become a popular destination for international
students. The standard of living is high—but so too, is the cost of living and studying. Annual
tuition fees for international students range from AUD$20,000-45,000, according to
mastersportal.com. Average monthly living costs in the most popular Australian cities start
at AUD$1,900 for Sydney, AUD$1,500 for Melbourne and AUD$1,400 for Brisbane,
according to the same website.
Influencing factors
In addition to general education fees, there are many other factors that can influence the
savings plan you choose for your child’s education.
If you’re an expatriate working in a foreign country, your employer may offer education
subsidies for children as part of your employment package. Still, post-secondary education is
less often subsidized by employers as part of an employee’s package, meaning that saving
up for university fees is especially important, and often the decision about where your
children study is even more complex.
Your family may have already set aside a lump sum for your children’s education costs. Your
family may have received gifts from other family members, such as the child’s grandparents.
Some families have more flexibility in say, remortgaging a property they own, or renting out
the property to receive a monthly income.
Keeping all the above factors in mind, families must still be prepared scenarios in which
unforeseen circumstances arise—such as an illness in the family or unexpected death.
Families need to ensure that a will has been set-up for their child or children, with a plan
that continues providing funding for their education needs.
What’s next?
Whatever your family’s needs, the best path to take in planning for your child’s education
fees is a holistic one that looks at all of the above factors. Winson Capital can help your
family with tailoring a comprehensive plan best suited to your needs. Contact us today for a
bespoke consultation with one of our highly-qualified international investment specialists.
*The information we provide in these guides are free and without obligation, but should not
be taken as official financial advice.
