The Ferrari 458 Italia costs $229,825, and the Ferrari California costs $192,000. On an average a Ferrari costs around $200,000.
So what does this have to do with anything, and why am I discussing this on a Financial planning website? Simple…. $200,000 is what it costs today to raise a child and put him/her through a good school and a decent university that will help them be successful in life.
US university fees make a lot of headlines nowadays, usually involving a string of rather daunting five-digit numbers. According to one report, the average cost of studying at a four-year private (non-profit) university in the US is now US$28,500 per year.
Of course, that’s only the average. At the top end are universities such as Cornell, which in 2011-12 is charging undergraduate fees of $41,541. Additional budget advice includes $7,800 per year for accommodation, $5,354 for food, $800 for books and resources, and $1,630 for other expenses, making a total of $57,125.
That means one year alone would cost significantly more than the average US annual salary, which was less than $40,000 in 2010. Multiply by four for the full course and, for most people at least, going to university in the US starts to look about as realistic as crashing at the White House while you look for a place of your own.
The United Kingdom is not cheap either when it comes to University Fees. Compared to the US, the fees are about 15% lower but still quite high.
Tuition fees for international students (2011)
|Humanities and Social Sciences||£9,000–£10,800|
|Sciences and Engineering||£10,200–£13,800|
So if you have two kids, you have just bought yourself two Ferrari’s worth of education costs.
How are you preparing to secure your child’s future?
Amit is an Independent Financial Advisor, based in Dubai since 1997. He is part of the prestigious ‘Million Dollar Round Table’ (MDRT), which is an elite club of the best financial advisors worldwide. He has authored the ‘6-Step Financial Success Guide’, and the book ‘Creating, Preserving, Distributing Wealth’. He helps business owners and professionals ‘Create A Second Income’ through investments.
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