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If you’re
an expat with children, and you need or want them to be
privately educated, or indeed if you expect them to go to
university, then you should consider planning the financing
of their education.
You may
want to have your child educated locally or at a boarding
school in your country of origin. Either way it can be a
costly experience, and the costs of educating a child are
increasing, and the rate of increase is much higher than
inflation. Much the same applies to the cost of a university
education.
The cost of
school fees varies, and depends on the school and location.
A figure of £4,000 per term for a day pupil would be typical
in the UK, and £8,000 per term for a boarder. For the more
exclusive private schools the costs can be significantly
higher.
Options for
funding school fees and university costs
Regular
savings
There are
number of companies who offer monthly savings plans to help
to save to pay for school fees or university costs. These
can be useful if you have pre-school children, or expect
your private education costs to increase in the future and
want to put aside spare cash in a tax efficient environment
which can offer excellent returns.
Lump sum
investment
If you have
a lump sum of money available it is possible to invest this,
and use the profit to pay for school fees. Many plans and
investments have specific options available to enable income
to be paid at the beginning of each school term. What’s more
you can invest offshore to protect your funds from paying
tax. There are also low risk and high risk investment
strategies available.
Borrowing
Sometimes
you may have no option but to borrow money to fund school
fees. One of the cheapest ways of doing so is to increase or
arrange a mortgage. If you’re living or working overseas
then it is even possible to arrange a mortgage through an
offshore bank, to get the mortgage you want in the currency
of your choice.
Pay-as-you-go
It may be
the case that you can comfortably afford to cover the cost
of school fees from your salary. You should however consider
the future cost of school fees and the rate at which they
are increasing, or if you family is expanding then you need
to consider how you will fund the additional school fees.
What’s more
you might want to think about how your finances would be
affected if you were die or become too ill to work. In which
case you might want to consider protecting your loved ones
through a protection policy.
Find out
more
If you want
to know more about school fees planning, and want to
discuss this free of charge then CLR, international
financial advisers. Contact CLR Overseas on +357 22 898684 or
contact
us online.
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