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Children Education Plan

It is a common aspiration of all parents to hope their children have a bright future. Many are keen to send their children to study abroad so that they can be able to stand out in this highly competitive society. Yet, to go to an overseas school needs a considerable amount of money, let alone having to pay for the living expenses. Have you planned well to give your beloved children the best education yet?

─ Execute Regular Savings Plan efficiently will help you achieve your goal easily ─

What is a “Regular Savings Plan”?

When you start to invest, you can either make a single contribution or set up a Regular Savings Plan in which you put a small amount of money every month. A “Regular Savings Plan” is an arrangement that invests a fixed amount on a regular and recurring basis, such as every month. Setting up a Regular Savings Plan is easy. All you need to do is to sign an agreement with the product provider that allows it to transfer a fixed amount of money from your bank account or credit card account (usually other payment methods are also available) on a specified day every month for investment.

A Regular Savings Plan is best suited for those who don’t have much money to invest but have a long-term wealth management need. It is a painless and time-saving investment approach for many of those who don’t have the time to keep up with the economic situation and the bullish and bearish market. It also reduces the risk of buying at the highest prices. Combining savings and financial management, this investment approach is suitable for the new workforce, people who plan for retirement in their mid-career, as well as new parents looking to set aside money for their children’s future education.

You should bear the following factors in mind while working out an education plan for your children:

Factor 1. The expenses besides the tuition fees

Apart from the costly tuition fees, you also need to set aside an amount of money to pay for living and other expenses if you plan to send your children to study overseas.

Current expenses (USD)

Country Annual tuition Annual living expenses
Canada 13,375 ~ 26,000 8,750 ~ 15,000
United States 25,000 ~ 50,000 1,500 ~ 20,000
Britain 13,750 ~ 45,000 17,500 ~ 23,750
Australia 17,500 ~ 27,500 13,750 ~ 20,000

Estimated expenses (USD): annual tuition + annual living expenses

Country 5 years later 10 years later 15 years later
Canada 24,428 ~ 45,267 26,970 ~ 49,979 29,777 ~ 55,181
United States 29,258 ~ 77,286 32,303 ~ 85,330 35,666 ~ 94,211
Britain 34,503 ~ 75,906 38,094 ~ 83,806 42,058 ~ 92,528
Australia 34,503 ~ 52,444 38,094 ~ 57,902 42,058 ~ 63,929

As of 2019 and based on a 2% inflation rate, USD : HKD = 1:8

Factor 2. The length of the savings term

Many parents now realise the importance of planning for their children’s education funds as early as possible, as it can become a heavy burden on the family. In fact, the sooner you start investing in an education fund, the longer you will enjoy the profit of compound interest, and the monthly or annual contribution amount will also be lower.

Factor 3. The inflation rate

In recent years, many schools increased their tuition fees at rates above the inflation rate. Therefore, you should not forget to take the inflation rate into account.


Study aboard in Canada (USD)

Age(s) of Child Remaining years before entering college Total expenses for 4 years* Required saving amount per month#
0 18 126,400 292
5 13 114,484 449
10 8 103,692 804
15 3 93,917 2,338

*Assumed an annual inflation rate of 2%
#Assused an annual return on investment (ROI) of 7%

How to execute the plan precisely?

Tip 1. Choose the right tools

As the saying goes, “having effective tools makes work perfectly.” Choosing the right financial tool is a job half-done. Being versatile, comprehensive, and easily executable, the trust plan provided by Metis HK can help you achieve various investment and wealth management goals. Asset switching can be done whenever necessary in response to the changes in the global economic climate. This helps you realise your future vision and fulfil the need of every stage of your life.

Tip 2. Patience is key

What’s crucial to investing is “how long” you are in the market, not "when" you enter the market. Making a long-term, fixed investment in a disciplined, undisrupted, and persistent manner is the only way to achieve your financial goal. Therefore, as long as you stick to the rule of “regular savings and long-term investment”, your goal is within your reach through the effect of compound interest and long-term investment accumulation.


Important Note:
The above information is for reference only and does not represent Metis Global Limited in providing any investment recommendation or offer. No liability in respect of any errors or omissions (including any third-party liability) is accepted by Metis Global Limited. No guarantee is given that the content of that information (including any such information) will be error-free. The information should not be relied on by anyone as investment advice. Please seek professional advice from your financial adviser.

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