College Fees Teach Parents a Tough Lesson
Mums and Dads forced to put retirement plans on hold
A third of working parents in the UAE say paying for their children’s education prevents them from saving for retirement.
New search from HSBC found that while the last majority of mums and dads – 92 percent believe a university degree is essential for their kids to achieve their life goals, 29 percent of parents write-off their hard-earned retirement savings so they can cope with the cost of higher education.
Parents with young kids, who are the ones who should be thinking of planning for the future now, 66 percent say ‘not to worry, I’ve got savings set aside.
“Wind the clock forward and only 40percent end up finding enough to fund university.
“This is worrying situation. There is a huge gap, which points to that there is no replacement for seeking advise and starting to plan for these things early.
“When you fail to plan and then you find,”OK, mu kids is going to university, oh dear, it’s going to cost me this!”… then your retirement plan has gone for a toss for the next few years because you’ve not planned for education. So it’s important to plan ahead.
HSBC’s Value of Education 2015: Learning for Life report examined the views of more than 5,550 parents across 16 countries, and more than 450 from the UAE.
Among parents whose children are currently at university, less than half – only 40 percent – are using or plan to use saved funds. More than a third are reliant or expect to rely entirely on day-to-day income.
Of those parents who have not yet saved anything towards the cost of their child’s university education, nearly two in five – 38 percent – say did not have enough money left to do so after paying day-to-day budget.
Some 21 per cent said that they had just given it any thought – or that it is still too easy to start saving.
“It costs about $250,000 for a four-year degree”, Verma said. “When people get to know they don’t think it’s a lot. But you forget incidentals, coming home, holidays with friends, flights..etc. [And] they never consider inflation. Have you ever seen tuition fees come down?
Do you have Children that you hope will go to university/college? See attached and contact me if you need help