UAE Parents Accumulating Massive Debts to fund the Best Education for their Children
A new survey released by HSBC reveals the true cost of a university education, and that UAE parents were spending 140% more on education than the global average.
According to the survey, UAE parents spend on average $18,260 USD compared to $7,631 USD globally. Bear in mind this is just tuition fees. As such, more and more parents are getting into debt to send their children to the best universities. Speaking on the “The Value of Education: Foundations for the Future” survey, HSBC’s Kunal Malani said:
“We’re certainly seeing customers willing to personally borrow money to fund their children’s education. It’s very common.
“We know customers are borrowing on their credit cards to pay school fees.”
The survey had 6,241 respondents across 15 countries and territories, 400 of which were from the UAE.
With this in mind, how do you finance your child’s university education?
Financing your Child’s University Education and Minimising Debt
In the first instance taking out investments that will help to fund school fees and living costs is essential. Given the choice of financial vehicles, only through an award winning financial planner who is an expert in wealth management will really have the knowledge to make your money stretch to meet school fees.
Starting early is another important factor so you can take advantage of the delightful compound interest. This gives you significant advantages, and makes a real difference to how much you have to spend on your child’s education.
If you are planning to send your child to America, you could consider community colleges rather than Ivy-league colleges as they tend to be cheaper but still provide a good education.
The survey noted that around 58% of respondents wanted to send their child overseas, citing America as the top destination. Karen Bauer, Regional Director of Education USA, tells us why:
“A higher education that is international in scope has become a requirement for those seeking top careers. Parents are looking to an education abroad to give their children an advantage because it provides international work opportunities.”
Send you Child to University Cost Effectively
To get ready to fund your child’s education simply click here and complete the CALL BACK SERVICE FORM. We can look at your aspirations your income and develop plans to give your child the best education in the world. The sooner you start, the easier it will be and the less debt you will incur over the long term.