How To Afford Your Kid's College In UAE? Survey Reveals Shocking Realities

A recent survey has revealed that parents in the UAE expect to spend between Dh250,000 and Dh600,000 on their children's higher education. Despite these high costs, many parents are financially unprepared, with 29% yet to start saving for university expenses.

The study by YouGov, commissioned by Zurich International Life (Zurich), part of Zurich Insurance Group, highlights a significant financial gap. With 63% of respondents anticipating such high costs, the survey underscores a substantial financial responsibility for many families.

Traditional saving methods remain prevalent in the region. Among the 1,000 residents surveyed, 77% prefer bank deposits, while 48% invest in shares. However, only 14% use education-specific savings plans designed to enhance growth and provide targeted benefits for educational expenses.

Conventional deposits offer safety but typically lower returns that may not keep pace with rising education costs. Education-focused savings plans often include investments in growth-oriented funds. These plans aim to accumulate savings while outpacing inflation, ensuring the value of savings does not diminish over time.

"While the substantial costs associated with higher education underscore the urgent need for effective savings strategies, starting early and choosing the right education savings plan can be a game-changer in helping parents save today for their children's happily ever after," said David Denton-Cardew, Head of Propositions at Zurich in the Middle East.

Value-Adding Strategy

An overwhelming 87% of respondents showed strong interest in education savings plans that also offer life insurance cover. These dual-purpose plans help accumulate funds for education and provide financial security for the family if needed.

As education costs rise, starting early and exploring various savings options, including dual-purpose plans, can offer a balance of growth and security. "Having a well-structured education savings plan does more than just save money; it helps grow your money through appropriate investment strategies and ensures the protection of that investment," noted David.

According to the survey, most parents believe allocating 6% to 20% of their monthly salary is sufficient for education savings. The survey emphasises that more effective and affordable savings plans are needed. Empowering parents to give their children the best chance at their dreams with a tailored education savings plan remains a sustainable strategy.

Parents could consider plans offering tailored solutions, long-term growth and life insurance cover to meet this goal. By adopting a strategic approach to savings, parents can better achieve their children's educational goals.