Can I Afford to
Send My Child to University?
When children are asked the question “What do you want to be when you grow up?” they often come up with some ambitious answers – astronaut, professional athlete, scientist. Naturally, as a parent, you want to make sure nothing stands in your child’s way, least of all the financial ability for them to attend the university they most desire. And yet, with the rising costs of education globally, it can be difficult to know where to begin.
By doing some homework of your own, and alongside your Arlo advisor you can build a strategy to meet your education savings goals and balance these with your other goals, like retirement.
What you should start considering
1. The costs – Costs vary by institution and its location, therefore, consider what type of university your child may want to attend. A range of options rather than one specific choice is helpful if you don’t know the answer right now.
2. How much do you intend on being responsible for? – Will you pay all of your child’s expenses? Will it be half of everything? Might you fund the tuition but not the accommodation? There is no right or wrong answer to this question. It is simply what works best for your family’s personal and financial situation.
3. After you determine your role in providing for education, you and your financial advisor can talk about how much you need to save to help get you there.
4. Start saving as early as you can – Time can be one of your biggest assets, and any form of delay can be extremely costly. Saving a certain amount every month can make a big difference in reaching your goal. If you’re starting later, don’t worry that’s OK too. But Start now, and get yourself back on track.
5. Ways to save more over time -
When you no longer have day-care expenses, how much will that save you? AS that money is already accounted for, why not invest that money? This chart shows the difference between saving:
- $100 a month from a child’s birth to age 18
- $100 a month from age 5 to age 18
- An additional $350 a month from age 5 to age 18
How we can help
Talk to your Arlo advisor today to get started.
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