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How much do you need to save
for your children's education?
A good education is one of the most important things that we can do for our children. A good education provides the foundation for their future success in today’s world.
Based on university surveys estimated costs are: - Tuition up to $4,000
- Books $1,000
- Living expenses, if living away from home, $9,600 based on $185 per week
- Other course related costs, $350
Total approximately $15,000 pa. The cheapest option is to assume that they will live at home. Allowing $50 per week spending money this will reduce costs to $7,600 pa. If you want your child to do dental, or medical studies, the cost could be up to $100,000 or more. It's a lot better to have budgeted some of this cost than to have your child graduate with such a high level of debt.
For education savings we recommend 'aggressive' to 'highly aggressive' risk/return profile investments. We recommend using 6% as the net of tax paid, net of inflation, return likely from this type of investment over the long term. Now that you know how much you should be saving, check out investments,
or contact a LYFORDS adviser.
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