W
e all know that bringing
up a child in Hong Kong
is getting increasingly
expensive, but until now
it’s been difficult to work out the true
cost. The Bauhinia Foundation Research
Centre has now launched an online
calculator* to help parents total up how
much they need to set aside.
Using the tool, the research centre
calculates that raising a child from
birth to 22 costs HK$5.5million in today's
money - assuming the child attends
private school and secures a subsidised
degree in Hong Kong. This sum jumps
to HK$6.87million when a child goes
to university overseas. Why not try the
calculator yourself to see what different
choices make to the overall cost?
*
A closer look
Other than the obvious tuition and
debenture fees, cost of school bus,
uniform, textbooks and field trips is
estimated to be HK$380,000 and
three extracurricular activities plus a
summer camp every year between the
ages of three and 18 are estimated at
HK$765,000.
If your child then goes on to study
at a university overseas, your outlay will
skyrocket. Even if they’re a full citizen of
sponsored feature
The true cost of a
good education
Of course you want the best for your children, and a key part
of that is providing them with an excellent education. But this
doesn’t come cheap.
Janet Borchert
lays out the facts.
About Janet Borchert
An independent financial adviser, insurance broker,
wealth manager and mum of two. Her clients
benefit from her holistic approach to financial
planning, encompassing family protection,
education and retirement planning and more.
your home country, you can’t assume
they will qualify as a local student. For
example, under current rules, a child
has to live in the UK full-time for three
years before starting university in order
to qualify for local fees. A recent study
by AIA indicates that an average
undergraduate degree at international
student rates plus living expenses costs
between HK$984,000 to HK$1,572,000 in
the UK, USA, Canada or Australia.
So what’s the answer?
Putting money away in a savings
account for your children’s education
isn’t a practical option, as bank’s
interest rate is unlikely to beat the rate
of inflation. Education fees have been
rising faster than inflation in recent years,
so the figures don’t stack up well.
Instead, I recommend developing
a strategic plan to stay on top of your
children’s education funding with a
tax-efficient, inflation-beating, globally
portable investment solutions.
As an independent financial adviser
with solid experience, I can put together
a customised solution for your family’s
unique situation. I can also help you
ensure your children’s opportunities
in life won’t be negatively affected if
something happens to you.
If you would like to safeguard your
children’s future, I am offering
Playtimes
readers a FREE consultation to discuss
how I can help.
Email
or call
5199 8399 and mention
Playtimes
.
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