Education of children becomes a financial goal for many people. Let’s look at ways to achieve it in this article.

Why you need a good education

The average income level of workers with higher education in Moscow is 30% higher than that of workers with specialized secondary education. In the United States, university graduates earn 1.7 times more than school graduates, master’s degree holders earn 2 times more, and doctoral degree holders earn 3 times more. In Russia it is not just the presence of higher education that is important for employers, but where it was obtained.

The educational market is saturated with tempting offers. There are programs for every taste and purse: in Russia, England, Italy, France, the USA your child can become an outstanding economist or lawyer, a secular photographer or a chef in a Michelin restaurant.

A good education can be affordable and expensive. Or very expensive. We don’t pay just for knowledge. We pay for prospects, important acquaintances, a social circle, and access to potential prestigious jobs.

What it costs

A bachelor’s degree at the oldest university in Rome “La Sapienza” will cost from 1200 euros a year, and the full cost of studying at Stanford is about 100,000 dollars. A bachelor’s degree at Moscow State University costs 400,000 rubles a year. Not cheap professional training programs for fashion designers, jewelers, chefs, photographers, operators. Full training in the prestigious academy of chefs costs 15,000 euros, and to learn to be a photographer in Milan’s Brera Academy you need 9000 euros for 3 years.

Additional expenses during the study – this is not only the cost of accommodation in a separate single room (from 400 euros per month), food (from 200 euros per month), transportation (30-50 euros per month), cell phone and internet (about 30 euros per month). This is also educational literature. Most often students have to buy books for their studies on their own. The cost of a set of literature for a year can reach 500 euros or more.

Strong funding may not fulfill its function without the abilities and desire of the child, and they can and should be developed. Think about additional training (language courses, exam preparation, specialized summer schools), calculate its cost before entering university and include the costs in your financial plan.

When to start saving

If you summarize all the expenses, it becomes clear: only the Forbes list members can provide quality education for their children. What should ordinary mortals do?

It is necessary to independently prepare for this stage in the life of the child. It is important to start saving money not a year and not three years before the start of education, but ten. For clients who are especially demanding, it is recommended to start preparing from the birth of the child.

How to save

You can save regularly by using banking or investment instruments: savings life insurance and deposits

Cumulative life insurance is a program where insurance payments start when the child reaches a certain age. Cumulative insurance is similar to a deposit: interest is accrued on insurance premiums. Since the minimum term of the contract is 5 years and penalties for early withdrawal of savings are high, this product is recommended for clients who are afraid of easily squandering their deposit.

A term deposit may offer a higher interest rate and ease of use, but easy withdrawals can be an unnecessary temptation. Recommended for people with strong character and iron will.