By James Lawson
This Is a key subject and one that’s often the source of heavy debate. Where do we want our children to be educated? Where are the best schools and teachers? What type of education do we want to be able to provide and more importantly, how much will it cost?
As parents we want the best education for our children and we want to be able to afford it. Yet, when we consider the costs it can be a bit of a shock.
Education costs have been on the rise for years and this trend is not set to shift anytime soon. However, the significance of education has not diminished in the slightest. Early planning minimises the impact of the investment and provides peace of mind that this essential aspect of your child’s future is in hand.
Additionally, regular contributions to a tax efficient savings vehicle can make the cost of quality education much more affordable. The cost of education will also vary considerably depending on the location in which you are working. While developing countries often offer lower cost education options it is important to check that they meet the standards of a properly accredited international body to give your children the best education.
Tax Advantages for an Overseas Education
Whilst the cost of educating your children abroad can be higher, there may be tax advantages which help to offset these costs. Depending on your circumstances there may be specific investment vehicles which are highly tax efficient and in some cases incur no tax.
How Much Does University Cost as an Expat?
If you do not qualify for “home status” your children will be classified into tiers which determine how much you pay. There are NO limits to the charges universities can apply to overseas students. Even if you are lucky enough to achieve home status, the fees remain far from cheap, leaving many students in debt.
At the moment it’s not how much but when. The cost of delaying by even a couple of years can considerably increase how much you need to save each month in the future.
This is the key question posed by most parents and it can be answered with a frank discussion with a qualified and experienced financial advisor. It does after all require setting aside a fund or funds for a set period of time but it doesn’t have to be painful. Think of it simply as a commitment to your child’s future.
James Lawson is Partner of Berkeley Wealth Management based in Bucharest. If you have any more questions or would like to arrange a confidential discussion, please contact me at [email protected] or direct on 0736 805574.