HERE ARE WAYS SUGGESTED TO EASE THE CHALLENGES OF FOREIGN EDUCATION PURSUIT:
For thousands of Nigerians
studying abroad as well as the thousands aspiring to join them, the devaluation
of the naira is a major setback and will inevitably force parents to reconsider
their children’s overseas education plans. Here are a few ideas to consider as
you navigate the challenges of the increased education costs.
The key to successfully educating
children is preparation and planning from their earliest years. Many parents do
not plan for this huge expenses until the bills are almost due. Putting in
place an education savings plan with an insurance education cover from direct
debit from your current account to this appropriate investment. This will help
keep your plans on track.
By some estimates, annual
increases in education costs can be as high as 10% to 15%. An
education-planning calculator helps you to visualize various scenarios assuming
savings over a period of time. It will help you to determine how much to put
into the education fund on a regular basis in order to meet a particular goal.
Are all your savings and
investments in naira? Exposure to a diversified currency portfolio typically
reduces exchange rate risk. It is important, particularly if you have
obligations in foreign exchange to hold some foreign currency in your
domiciliary account, or in a diversified portfolio consisting of bank deposits,
bonds, insurance products, mutual funds and real estate.
Remittances for school fees,
student maintenance allowances, Business Travel Allowance (BTA), and Personal
Travel Allowance (PTA), are among the eligible requests for foreign exchange
that can be performed for you by your insurance underwriter in conjunction with
the Central Bank of Nigeria (CBN) at the official/interbank exchange rate.
In the context of pursuit for
foreign education for your child, parents should never overlook scholarship and
grants of their children. From your children earliest years you may have
identified a unique skill or talent, sporting, artistic or academic, making
them eligible to compete for scholarships. Scholarship may be tied to a
particular field of study or may require that a certain standard of performance
be maintained throughout the student’s enrollment. They may not cover the
entire school fees bill but will certainly offset some of the expenses.
For many families, it is an
economic necessity that children contribute towards the funding of their
education by working full time and taking advantage of distance learning
opportunities or enrolling in part-time courses. If you are considering your
child getting a job, do confirm that there are no student visas restrictions
regarding working in a foreign country.
A firm foundation comes from a
solid education and it is every parent’s duty and desire to give their children
the best possible start in life. It is equally important for parent to
carefully consider what is best for their children in the context of their
family situation. It is important to strike a balance between giving your
children a decent affordable education and ensuring that in your bid to educate
them you don’t wipe out your retirement savings and end up becoming dependent
upon them.
Therefore, I recommend you to
pause take a look at AIICO insurance products and choose the products that
suites your needs especially the policy that caters for children’s education and
also your retirement expectations. Education is the best legacy parents can
leave for their children.
(This is a research conducted by Chubuike Chinedu; reference journal: The punch Newspaper, Monday, August 31, 2015.)
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