Education
When it comes to saving for your child’s education, few can afford not to start saving now.Child’s education planning is complex which involves making the right choice considering the characteristics of the child, the university, the geographical location and most importantly your financial readiness.
WHEN YOU SAVE
My daughter is 8 and she will need $20,000 per annum for 4 years of private education after 10 years. How much do I need to set aside monthly, assuming an interest rate of 7% net of all charges? Answer. US $ 494 per month
WHEN YOU BORROW
My daughter is 8 and she will need $ 20,000 per annum for 4 years of private education after 10 years. How much do I need to pay every month for a 10 year term if I borrow the money at an interest rate of 6.8%? Answer. US $ 1,120 per month
The Facts
Case Study I
My new born baby will need $20,000 per annum for 4 years of private education after 18 years. How much do I need to set aside monthly, assuming an interest rate of 10% net of all charges? Answer: US $ 325 per month
Case Study II
My son is 4 years old and he will need $20,000 per annum for 4 years of private education after 14 years. How much do I need to set aside monthly, assuming an interest rate of 10% net of all charges? Answer: US $ 437 per month
Case Study III
My daughter is 8 and she will need $20,000 per annum for 4 years of private education after 10 years. How much do I need to set aside monthly, assuming an interest rate of 10% net of all charges? Answer. US $ 615 per month
Case Study IV
My son is 12 and he will need $20,000 per annum for 4 years of private education after 6 years. How much do I need to set aside monthly, assuming an interest rate of 10% net of all charges? Answer. US $ 1,084 per month