Have you ever considered how many savings you need for your children's college education?

Investing in education is one of the many priorities parents have to take into account when looking to increase the opportunities for their children. We all want a better future for our children, hence we know that education is the way forward. However, going to university is not an easy task if you have to face the costs without prior financial guidance and planning.

Further Education Savings Plan

Here are some examples of the costs parents have to face in Latin America: In Mexico, the average cost for an undergraduate of 4-5 years is $42,538 USD; in other countries such as Peru, the price remains at an average of $33,227 USD and in Chile $36,588 USD, to name a few. Added to this price, we must also include other important expenses such as food, clothing, stationary, books, housing and transportation. At the end, the amount becomes higher and higher.

But... Have you considered the benefits of starting to save from an early age for your children's education?

In addition to ensuring their university education and related expenses, you could anticipate capital for school trips, an emergency fund, expensive materials or even help them buy their first home.

Another aspect to consider is the increase in prices. Inflation on college tuition fees, due to high demand and limited available spots, has remained at an average annual rate of 5% to 6% over the last 25 years. This implies that these prices will continue to rise, which is why we need to plan strategically while considering these increases.

Try our Educational Investment Simulator and answer the questionnaire to receive your budget and recommendations for the ideal plan.

Example of how our Educational Investment Simulator works:

A 42-year-old sales executive has two children, a 5-year-old and a 3-year-old. She is concerned about covering the cost of her children's college education at 55 and is looking for an option that will allow her to save for this purpose.To ensure full payment for a 5-year professional degree at an average university in Mexico, you would need at least $42,000 USD.However, with annual inflation of 5% on fees, you will need a savings fund for the 5-year-old of $79,179 USD and one of $87,315 USD for the 3-year-old. Saving month-to-month for a long-term goal allows you to invest that savings so that inflation will not cause you problems and work for yourself during these years. Growth can also cover a percentage of your own goal.

EDUCATIVOS

The following projections assume growth of 6% per year:

3 year old son:

5 year old son:

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About KNG INTERNATIONAL ADVISORS

At KNG International Advisors, we are a wealth advisory firm with more than 25 years of experience in international markets. We offer our services to Investors, Family Offices, Wealth Managers, International Financial Advisors in Latin America, Africa, the Middle East and Asia. We already have a portfolio of more than 4,000 global clients.

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