The most expensive item of clothing you’ll ever buy for your children

When is the right time to start saving?

There’s no getting away from the fact that a university education is expensive, especially if more than one child is involved.

It’s not just the cost of the tuition fees, but all the other costs that come along with putting a child through university. Students attending a US private non-profit university in 2016/17 will pay on average more than $49,000 for their fi rst year alone (see table 1). Multiply this fi gure by a 4 year undergraduate course, and after assuming a small yearly increase of 4%, you could be looking at more than $200,000.

Table 1
Average US university fees, 2016/17

It’s never too early to start saving as no parent wants to see their children burdened with debt.

Assuming the costs in table 1 continue to rise by 4% each year, parents of a child born today would have to fi nd more than double this amount by the time their child reaches age 18 (see table 2).

Table 2
Average fees at US universities

The solution? A little education.

Quantum is an investment plan that aims to build up a lump sum to meet university fees and associated costs, in return for an aff ordable monthly premium.

In the example shown in Table 2, we’d be talking about $1,067 a month, paid over 18 years (total premiums paid $230,472).

The chart, right, shows the potential build-up of fund values against regular premiums invested to help meet university costs in the later years.

You could of course choose to do nothing until much later on, but with some early planning, you could avoid burdening your child with thousands of dollars of debt in the form of student loans.

Important notes

Quantum is available exclusively in association with fi nancial advisers.

The fi gures shown in the above chart have been calculated assuming 7.5% per year growth and are inclusive of all Quantum product charges.

The university fees shown in Table 1 make no allowance for any fi nancial assistance that may apply.

Quantum is not available to USA residents. This is an example of the potential
costs of sending a child to a university in the USA.

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