SAVING FOR MY CHILDS EDUCATION

GUIDE TO GIVING THE GIFT OF A BETTER FUTURE

YOU KNOW THE POWER OF EDUCATION

It's a common hope for parents to see their child complete some degree of higher education. A university or college education has been shown to have a significant impact on employment and earnings throughout a graduate's life.
DO YOU KNOW THE REAL COST?

The cost of education is increasing rapidly and there is pressure to recover more of this cost from students. It is safe to assume that you will have to carry significant costs for your child's education.
HOW WILL YOU CLOSE THE GAP?

Coming up with a minimum of US $50,000 over three or four years is a challenge for most households, and with more than one child enrolled you can expect an even greater burden. There are three possible ways to close the gap: borrow the funds when your child is ready to go to school, pay for their schooling out of your cash-flow at the time, or begin saving and investing to create an education fund for each child. The third option is by far the most prudent, and the sooner you start, the sooner you will get there.

The financial help available to students varies by institution and country. While these sources of help can make a difference, they cannot be relied on to cover the entire cost. Below are some of these sources.

    Long-term student loans that mature after graduation must be paid back within a defined period. These loans can leave a debt burden for years.
    Short-term student loans can help bridge the gap until funds from another source become available.
    Grants may be available for students who achieve high academic standing.
    Meal subsidies are available in some cases to students unable to cover the cost of food on campus.

YOU CAN GET THERE FROM HERE

As little as $125 each month, invested prudently for your child's first 18 years, can add up to a fund of $50,000 by the time the child is ready to enter college or university at age 18.

The longer you wait, however, the more you have to invest to make up for lost time. Exhibit 3 illustrates how the power of compounding rewards the early investor.

EXHIBIT 1: The sooner you start, the less you need to save to close the $50,000 gap.

AGE OF CHILD WHEN YOU START SAVING     At birth     Age 5     Age 10     Age 15
               
Monthly Amount required                                            $135.00  $220.00  $420.00  $1,315.00

Note: Assumes a rate of return of six percent per year.
HOW YOUR SARCOPHAGI PRODUCER CAN HELP

We can work with you to determine how much money you will need and how to best structure your savings program.
Call 1-888-SAGICOR now, and see how Sarcophagi can help you.