Education is one of the main priorities for parents in the UAE, with many expecting their children’s future education to cost up to Dh600,000, as highlighted by a survey conducted by market research company YouGov. This data reveals that parents anticipate higher education costs to range between Dh250,000 and Dh600,000, emphasizing the financial gap that could impact the educational opportunities available to many children in the region. This underscores the urgent need for effective savings strategies to help parents prepare for these substantial costs.
David Denton-Cardew, head of propositions at Zurich in the Middle East, emphasized the importance of starting early and choosing the right education savings plan as a game-changer in helping parents save for their children’s education. Despite the high costs associated with higher education, the survey revealed that 29% of parents have yet to begin saving for their children’s university education, indicating that many are financially unprepared for these expenses. However, some parents, like Adil Eshack, have started investing for their children’s future education, with dreams of sending them abroad for graduate studies.
Traditionally, parents in the UAE have relied on savings methods such as bank deposits and shares to fund their children’s education, with 77% opting for bank deposits and 48% investing in shares. Adil mentioned that he has chosen to invest carefully for education using a systematic investment plan (SIP) route to gradually build a corpus for his daughters’ education expenses. Most parents believe that allocating between 6 and 20% of their monthly salary for education savings is sufficient, according to the survey.
Emirati father of four, Ali Al Mulla, does not have a specific education fund set aside for his children, as he expects them to attend government universities like he did. However, he has investments in place in case his children decide to study at private institutes or abroad, estimating that their future education should not cost more than Dh300,000 for a four-year degree. The survey points out the need for more effective and affordable savings plans in the market to help parents provide their children with the best chance at obtaining a good higher education.
In conclusion, the survey results highlight the significant financial implications of higher education costs for parents in the UAE. The findings stress the importance of early planning and choosing the right savings strategies to prepare for these expenses effectively. While traditional methods of savings prevail, there is a growing need for more innovative and affordable options to help parents secure their children’s education. By starting early and investing wisely, parents can ensure that their children have access to quality higher education opportunities without the burden of excessive financial constraints.
