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Education costs for a child could top $408,000 in UAE

DUBAI, October 24, 2016

The cost of a child’s education through school and university could reach almost Dh1.5 million ($408,000) in the UAE, according to financial solutions provider Old Mutual International.

The latest industry figures are based on sending a child to a UK or US curriculum school in the UAE followed by university in the US.

Old Mutual International, part of Old Mutual Wealth and a leading provider of financial solutions, has launched a new online tool that will help families to plan for their aspirational future while taking in all the additional costs associated with education.  

Brendan Dolan, regional director, Middle East and Africa, for Old Mutual International, said: “Most parents want to provide the best for their children and would agree that funding their children’s education is a key financial priority and this is especially the case in the UAE where all expatriate parents need to pay for their children’s education.”

“It’s imperative parents in the UAE start saving as soon as they can so as not to rely solely on their income to fund the fees, which can be a risky strategy. The earlier parents start to save for education, the less money they will need to put aside as it will have more time to accumulate any investment growth.

“The first step in planning appropriately is facing up to these costs and our online tool will help parents to do this. We would then advise they seek out professional help from a reputable financial adviser as early as possible,” Dolan added.

Based on the latest industry figures from whichschooladviser.com, Old Mutual International estimates that sending a child to a UK or US curriculum school up to university age can cost Dh562,543 ($152,865) in school fees alone. Additional costs such as trips, bus services and uniforms, can cost as much as Dh15,684 ($4,262) every year from primary through to high school, this could bring the total cost of school education to approximately Dh766,437 ($208,271).

When it comes to supporting a child through university the figures can become even more eye watering depending on the country the child studies in. If the child studies in the US, industry figures estimate the total cost for a four year course can add up to Dh681,124 ($185,088) which includes university fees, room and board, transport and other living expenses.

If the child studies in the UK, then costs may be slightly cheaper at approximately Dh323,700 ($87,962) for a three-year course, which includes university fees, rent, transport and other living expenses. If the child studies at a top university in London then costs will rise significantly.

With the cost of living rising all the time, by the time the child reaches university these costs are likely to be significantly higher.

Dolan continued: “When considering the best ways to save for a child’s education there are many options available. Many parents may want the security of ring-fencing these savings to ensure future educational needs are safeguarded – in such cases, a trust arrangement may be beneficial, and will ensure the child’s future is provided for in the event of something happening to one or both parents.”

“The various potential risks should also be taken into account, for example, what if one or both of the parents lose their jobs, have an accident, or dies? Or an unexpected situation may arise when there are competing priorities, such as looking after an elderly relative.  Speaking with a financial adviser will help to ensure a robust financial plan is put in place,” he added. – TradeArabia News Service




Tags: UAE | university | School |

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