Sit down as a family to create an education savings plan
How do you ensure that your child will be able to go to college in the future? A college education isn’t cheap, but it is also the best investment you can make for your child. We asked 3 ambitious students how much their education is going to cost, and how they made the financial arrangements to cover these costs.
Episode 1: “Sit down as a family to create an education savings plan”
Branford, SBO student, wants to go to Canada. Branford is 22 years old, and a serious go-getter who is always looking ahead. He is currently in the last year of his SBO education for ICT Management Support. After that, he wants to get his bachelor’s degree at Kelowna College in British Columbia in Canada, which will take 4 years. After working in Canada as a network engineer to pay off his student loans, he plans to return to Curaҫao.
Why do you want to get a bachelor’s degree in ICT in Canada after your SBO education?
“Computers are my hobby, and I want to turn that into my profession. After my VSBO education, an SBO education on Curaҫao was the next logical step. For a college education, you can go to the University of Curaҫao, or go abroad. My Dutch is not at college level, but my English is. Hence my choice for a four-year college education in English. I also think studying in Canada is a little more laid back than in the United States.”
How much does your current SBO education cost?
“My SBO education is free. I don’t have to pay any tuition, and my books are paid for by the government as well. I live at home with my mother. I do have to take care of my own transportation. I currently take the bus to my SBO school in Steenwijk.”
How are you going to finance your Canadian bachelor’s degree?
“I started planning for the financial expenses of my bachelor’s degree in Canada over a year ago. My Canadian bachelor’s degree will cost about $17,000 per year, which includes tuition and living expenses. Through Stichting Studiefinanciering Curaҫao, I can get a maximum of $15,000 per year. This allows me to pay for my tuition and school books, and covers some minor additional expenses. $10,000 of this amount is a loan, and $5,000 is a grant, as long as I finish my education on time.”
What will your parents contribute to your bachelor’s education?
“My mother will give me a total of $12,000. That is $3,000 per year. That money is meant for moving expenses, groceries, and living expenses. She started saving for my education years ago. I personally save f 300 every month. My mother would like me to come home once a year for Christmas. I will definitely do that the first year, but after that, not so frequently.”
Curious to see what the smartest way is to approach financial planning for your situation, or would you like to create an education savings plan for your child?
Branford’s advice to parents and his peers
- As a parent, start saving as early as possible for your child’s education, so that you have more options and less stress regarding your child’s college education when the time comes.
- As a student, research your financing options thoroughly before you start college, and then sit down as a family to create an education savings plan that will allow you to pay for your whole education.
Overview of educational expenses
The summary below shows the yearly tuition, financing, and the parental contributions for the education. At the bottom, you can see the total costs of the education, with the total parental contributions, and the total debt accumulated by student loans. The total parental contribution is the minimum amount that should be available. In order to alleviate any student debt, a higher guaranteed payout amount could be selected.
Do you also want to start saving for your child’s education?
The sooner you start saving, the less you will have to pay each month to provide your child with a solid financial foundation for their education. With our Education Plan, your payout amount is guaranteed.