Parents and guardians are strongly encouraged to save for their children’s academic future.
Recognising the costs of tertiary education, portfolio manager of insurance leader – Sagicor Asset Management Inc -, Nicholas Neckles has advised guardians to put measures in place as early as possible,
He made the point that it is much easier to save over a period of years, as opposed to trying to find the finances when their child reaches the age of schooling.
“If we take the example of a parent of a new-born, it would be much more manageable for them to set aside funds over an 18-year period, instead of depleting their savings or taking out a loan when the time comes to pay tuition fees,” argued Neckles.
“Using this example, an individual who invests in our mutual fund products with the minimum initial BBD $500 and subsequently continues to add to the investment the minimum BBD $100 per month for 18 years, would accumulate a total of BBD $ 40, 203.70 based on an annual average return of six per cent,” explained the Sagicor portfolio manager.
Neckles maintained that the benefits of capital accumulation was reflected by examining the cost of tertiary level education in Barbados and the Caribbean and further afield in places like the United States, Canada and Europe.
“This cost puts considerable strain on households and their financial capacity to continue financing their children’s attendance at these institutions, without the assistance of loans, scholarships or grants. If the cost to enrol locally is seen to be prohibitive for some, then one can immediately see the difficulty of looking overseas where costs are significantly higher,” Neckles said.
He went on to urge parents and guardians are to explore the various financial options available to them to save for this critical period of their children’s lives, and to speak to a financial advisor or contact Sagicor Asset Management Inc for more information and guidance.