If you answered “real estate”, you’d be right… most of the time. That’s because total spending on educating our children from elementary to college is catching up fast. This is understandable when you consider that getting a good education is seen as essential in today’s competitive world.
But quality education can cost a lot of money. For example, take a look at the table on the right. This illustrates the cost of a four-year, full time US college education. There’s a big range in the annual figures shown at the bottom – reading from left to right. And don’t forget to multiply those numbers by four to get the cost of a four-year undergraduate degree (It might be better to sit down first!)
Notice the percentage changes. Total college expenses are increasing annually at between 4.41% and 5.93%. This should definitely be factored into your education fee planning since a 6% annual increase has the cost of a college education doubling in just 12 years! And those numbers are for just one student.
What if you have two or more children and you want to give them both a good education all the way from elementary school to high school – that’s another ten years of education fees before they even reach college age. (Although some expatriate assignments might include full or partial assistance with secondary and primary schooling fees, they very rarely include any tertiary education costs, such as the college figure shown.)
It’s only fair to point out that there’s no one ‘correct’ answer to education fee planning.
However, before you make any long term educational decisions for your children, why not have a friendly, no-obligations chat with one of our knowledgeable financial advisors? We’ve advised many people worried about how they’re going to give their sons and daughters a quality but expensive education.
Ready to do your homework on educational fee planning? We have lots of answers for you – so please contact us today for a private, no-obligations consultation