When is the right time to start saving?

Therea��s no getting away from the fact that a university education is expensive, especially if more than one child is involved. Ita��s not just the cost of the tuition fees,
but all the other costs that come along with putting a child through university. Students attending a US private non-profit university in 2014/15 will have had to
pay on average more than $46,000 for their first year alone (see Table 1).

Table 1
Average US university fees, 2014/15
Tuition and other fees $31,231
Room and board $11,188
Books and supplies $ 1,244
Other expenses (inc. transportation) $ 2,609
Total (per year) $46,272 $n-p$46,272rofit
272
Source: www.topuniversities.com

Multiply this figure by a 4 year undergraduate course, and after assuming a small yearly increase of 4% (say), you could be looking at nearly $200,000.

Assuming the costs in Table 1 continue to rise by 4% each year, parents of a child
born today would have to find more than double this amount by the time their child
reaches age 18 (see Table 2).
Table 2
Average fees at US universities
18 – 19 2033/34 $97,471
19 – 20 2034/35 $101,369
20 – 21 2035/36 $105,423
21 – 22 2036/37 $109,639
Total $414,902$4130 $4Student
Year
The solution? A little educationa��a��a��a�� ate nona��profit
ear university
An investment plan that aims to build up a lump sum to meet university fees and
associated costs, in return for an affordable monthly premium. In the example shown in Table 2, we are talking about $1,041 a month, paid over 18 years (total premiums paid $224,856). The tablet below shows the potential builda��up of fund values against regular premiums invested to help meet university costs in the later years.

Student Age Total Premiums Paid Yearly Withdrawals* Fund Values At Year End
18 $224,856 $97,471$$ $97,471 $304,000
19 $224,856 $101,369 $101,369 $215,000
20 $224,856 $105,423 $105,423 $117,000
21 $224,856 $109,639 $109,939 $8,620
*Withdrawals are taken at the beginning of the year

Student
You could of course choose to do nothing until much later on, but with some early planning, you could avoid burdening your child with thousands of dollars of debt in the form of student loans.
Total premiums
Important notes

The figures shown in the above chart have been calculated assuming 7.5%
per year growth and are inclusive of all product charges. The university fees
shown in Table 1 make no allowance for any financial assistance that may apply.
This is an example of the potential costs of sending a child to a university in the USA.

Do you have Children who you hope to send to Uni? If so, read the attached and then contact me!

GREG POGONOWSKI
www.yourmoney-matters.net