x Abu Dhabi, UAEWednesday 26 July 2017

Plan ahead to pay for education

As wallets continue to thin in the UAE, residents are now forced to prioritise their yearly expenditures.

As wallets continue to thin in the UAE, residents are now forced to prioritise their yearly expenditures. For those with children, the lasting value of a quality education is certainly a top priority. In today's competitive world, where a major emphasis is put on education, it is only natural that we should want our children to make the most of their learning opportunities. However, school fees have steadily risen over the years. Therefore, planning in advance to make sure you have adequate funds to meet these costs makes economical sense. Making the right financial arrangements today will mean that the decision of whether to go on to higher education or not can be decided on ability, not financial standing. Similarly, your future net disposable income could be significantly diminished by a heavy school-fee commitment, meaning that you may have to compromise your own financial goals or lifestyle. However, planning in advance can mean financial freedom for yourself while at the same time providing an excellent start in life for your child. In the current financial situation, not everyone has the disposable income to start planning immediately, though options are available to start saving with a small initial investment. This allows you to get a plan in place and the option of increasing your investment later when your circumstances allow. It is worth obtaining a detailed quotation so you can see if you are above or below the right level of saving. Most expatriates will save more when they are overseas, and then reduce the amount of savings should they return to a taxable environment or one offering less salary. The main point is that parents should do something towards meeting this impending cost. The longer we put off such decisions the more expensive the solution becomes. Tim Searle is the CEO of Globaleye, a private wealth management company headquartered in Dubai. Contact him at searle@globaleye.com