Easing the financial burden of getting children through college
The average cost of university, including accommodation is approx. 15,300 per annum*
The total cost then for 4 years, including 2% inflation is approx. 64,000
How do you plan to pay for this ? savings, cashflow at the time, maybe a part time job for your child. It may well be a combination of all three. However the savings portion is something you can start working on right now and the earlier you start the better, here is why:
Jonny’s child Mary is 5 years old. He starts saving 200 pm towards her education at age 5 and the savings account earns 4% per annum. This will provide 43,900 or nearly 70% of the costs when Mary goes to college aged 19.
Lets say Jonny only gets round to starting the savings plan when Mary is 12, assuming the same monthly savings amount and return he will only have app 19,000 or just 30% of the costs saved.
(Source Zurich Cost of Education Survey 2022)
Did you know
Three-quarters of 15 to 18-year-olds said they wanted to learn more in class about how to manage their money. But only 15 per cent of the 2,000 students surveyed said school was their main source of financial education.
(source Financial Times 07/12/2023)
Children therefore often rely on their parents for financial education, by increasing your own financial knowledge you are able to pass this on ensuring they are equipped to deal with the complex world of finances.
Our free ‘Rockwellness’ financial report is an excellent source for the most practical and relevant financial knowledge. This plan can bring in all aspects of your financial life and answer questions like:
- What do I need to do to retire earlier?
- Should I pay off my mortgage?
- What investment return can I expect long term ?
We encourage all clients to request an update of their financial plan and review this with their advisor. Get educated and pass this knowledge on to your children (who will hopefully also be Rockwell clients one day) giving the best possible start in their financial lives.