Plan ahead for your children’s education before it’s too late
One in two parents doesn't have a financial plan for their child’s education, HSBC study
A university degree might put young adults in good stead for their dream career, but gaining a first-class education doesn’t come cheap to the parents who help them financially. Whilst university fees vary depending on courses and location, there is also the additional problem of some parents preparing for their retirement. Couple this with increasing university costs and continuing inflation and it is easy to see how quickly any retirement plan could quickly dwindle.
In fact, according to the recently published HSBC Quality of Life Report 2024, the cost of a university education can range from 20 to 60 percent of the required savings for retirement. Since the report suggests that the average expected cost of a 3 to 4-year degree costs $192,000 (Dh705,000) to $256,000 (AED 940,000) per child, planning ahead is crucial.
However, despite such a substantial amount being required, the shocking statistic from the report is that only 1 in 2 had an actual plan in place. Whilst some parents placed their hope in obtaining a scholarship or loan, the fact remains that there are other expenses to be considered, such as student visas, accommodation and travel, not to mention living expenses. Thus, even if a scholarship is provided, investing wisely and getting the most from savings rates, particularly if retirement is looming, is necessary early on.
However, whilst investing is important, for anyone considering their children’s future it might be time to start asking whether they are getting enough from their bank account. In today’s competitive market, aside from lucrative investment opportunities, HSBC offers benefits that can help with everything from a child’s application to a top university to discounts on university fees. With 44 percent of parents admitting to finding the right course and university for their children a challenge, any help can be invaluable.
The good news is that through HSBCs global network of education partners and worldwide Premier benefits, the banking giant is helping youngsters make the most of studying abroad with a whole host of benefits. One of which includes assisting Premier account holders explore OxBridge programmes, which offer higher education courses and cultural immersion experiences in leading universities in the UK, US, France and Spain.
Additionally, thanks to educational partnerships, Premier customers can take advantage of 15% off OxBridge tuition fees with their HSBC credit card and get a priority review for their child’s admission. There is also the offer of the use of preferential 1-1 consultancy services, who provide mock interviews along with CV and university application preparation.
In addition, due to a collaboration with Crimson Education and HSBC, a free evaluation with an academic advisor, plus 10% off consulting and tutoring services is available.
Undoubtedly, these benefits can put future students in good stead for their university application, but the help doesn’t end there.
For those who are successful and relocate overseas, HSBC provides worldwide Premier support 24/7 to help manage children's needs while they study abroad. Since Premier customers can open an overseas account for their children ahead of time, they can also be safe in the knowledge that their child will have their bank card before they relocate.
Also, if children need extra money urgently, an important benefit of the account is that customers can instantly move money between HSBC accounts worldwide, with no HSBC fees, using Global Transfers. Offspring can also have the same Premier benefits and support as their parents, including access to emergency cash at HSBC branches worldwide, which is a priceless reassurance for any mum or dad.
Therefore, for anyone planning the finances for that university education, it’s worth considering other aspects too, such as ease of banking transactions and 24/7 assistance. After all, the whole university process needs the right support network in place to ensure a happy and stress-free experience for all involved.