A survey conducted by YouGov on behalf of Zurich International Life reveals that parents in the UAE anticipate spending up to Dh600,000 on their children's future education. This figure underscores a significant financial shortfall that may impact the educational prospects of many children, according to experts. The survey data indicates that parents expect higher education expenses to fall between Dh250,000 and Dh600,000.
"The high costs of higher education highlight the necessity for robust savings strategies, and starting early with the right education savings plan can significantly aid parents in preparing for their children's future," noted David Denton-Cardew, head of propositions at Zurich in the Middle East. The survey also found that 29 percent of parents have not yet begun saving for their children's university education.
Adil Eshack, a father of two, has started investing for his daughters' future education with the goal of sending them to the US for graduate studies. He estimates the annual cost, including tuition and living expenses, to be between $60,000 and $65,000, subject to inflation adjustments. Traditional saving methods are still common, with 77 percent of surveyed residents choosing bank deposits and 48 percent investing in shares.
Adil opted for a systematic investment plan (SIP) to gradually accumulate funds, diversifying across equity index funds, debt funds, and term deposits. Most parents believe that allocating 6 to 20 percent of their monthly salary is adequate for education savings. Emirati father of four Ali Al Mulla does not prioritize a specific education fund but has investments in place for his children's potential private or overseas education, estimating the cost at no more than Dh300,000 for a four-year degree.
The survey emphasizes the need for more effective and affordable savings plans to assist parents in providing their children with the best higher education opportunities.
