Starting investing now for your children’s future is a commitment well worth making. Like most parents, you want to do the best for your children's. Investing in their education is a great way to help them get established for whatever the world has in store for them. The sooner you start the better. Working abroad gives you a chance to put extra savings aside.

Do your homework

Good quality education is a priority for every parent, but for anyone living overseas it’s essential. 

It can be a very expensive business too, so it's important to start organising your finances as early as possible. 

It’s becoming less common for companies to pay for private schooling as part of an overseas package. As well as the school years, there are the important - and expensive - university years to consider. It’s important that you put aside enough money now to cover the potential costs.

Savings and investment 

Your expat status gives you an opportunity to take advantage of tax-efficient savings and investment opportunities. 

There are options that could help you build up an education fees pot which can cover longterm school and university fees, despite rising inflation.

Factors to consider

• Will your child study in a local or an overseas university?
• Will you be able to afford the higher cost if you want your children to study abroad (see Table 1)? The tuition fees aren’t your only consideration either. You’ll have to think about the cost of living overseas as well.
• Tuition fees are increasing almost every year at a faster rate than market inflation. Don’t underestimate the effect of inflation as this can increase the costs substantially (see Table 1).

Table 1 – Cost of University Education

* Equivalent amounts in Hong Kong dollars, exchange as at 14 March 2012 

# Assuming the inflation rate is 4% 

Source: Education Bureau (www.edb.gov.hk), data as at February 2012.

• How many years before your children’s university studies begin?
• It goes without saying that the younger your children are, the longer you'll have to build up your funds. The sooner you start to invest the better. What might be surprising for you is just what a difference starting early can make.
• The example below shows the different amounts you might need to save depending on how long you have until the money is needed.
• No matter what your individual circumstances are, it’s never too early to start your plan.

Table 2 – Investing for Education (for the studies in U.S.)

# Assuming the inflation rate is 4% 

^ Assuming the average annual return is 5%. These figures are indicative only and not based on an actual investing or saving. There is no guarantee of the annual growth rate. On the contrary, you may be subject to investment and market risks. 

Source: Education Bureau (www.edb.gov.hk), data as at February 2012

How to achieve your goals

One way to help achieve your investment goals may be to take out a regular investment plan. 

By investing in an investment-linked assurance scheme, you can access a wide range of investment choices to capture market opportunities and diversify investment risk. 

As specialists in wealth management we may help you grow and protect your wealth as you move around the world. 

Our aim is to support you with long-term savings and investment solutions to allow you to look forward to the future with confidence.

Most of all, we’ll help you make the most of the opportunities available to you while you're living or working abroad. 

Now’s the time to start planning. 

Now’s the time to talk to Heng An Standard Life (Asia). 

Ask your financial adviser for details.

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