Invest now in order to earn a higher salary later
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 2: “Invest now in order to earn a higher salary later”
Dustin, UoC student in Curaçao. Dustin is 20 years old, thrifty and driven. He is currently getting his bachelor’s degree at the University of Curaҫao in Business Information Systems. When he is done, he would like to get his master’s degree in the United States. Eventually, Dustin would like to return to Curaҫao to use his experience in ICT to work at a large company.
Why did you want to study in Curaҫao after high school?
“During my last year of high school, in Havo 5, I started researching studying abroad, but it was just too expensive. The University of Curaҫao was much more affordable, and provides an equivalent education. I could keep living with my father, and wouldn’t have to spend money on groceries and rent.”
How long ago did your father start saving for your education?
“My father started saving for my education very early on, and I am very glad he is helping me pay for it. I see a lot of working students around me. They earn money, get tired, and get distracted. Because of this, they end up not finishing their education. I find that to be a short-sighted approach, because that way you never end up being able to take advantage of the high salary a degree can get you.”
How are you currently financing your education?
“I receive f 2,400 in student financing each year from Stichting Studiefinanciering Curaҫao (SSC). As long as I get my degree in four years, this remains an interest free loan. This amount only covers part of my expenses, so things like school books are not covered. My father contributes f 7,600 per year to cover my remaining educational expenses, and my living expenses. I don’t have to pay this money back, because according to him, this is part of my upbringing.”
What will your master’s degree in the United States cost?
“My 2-year master’s education in the United States will cost a minimum of f 20,000 a year, so a total of f 40,000. That is just a bit more expensive than getting a similar education in The Netherlands or Curaҫao. Hopefully a good job will allow me to pay back my student loans quickly.”
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?
Dustin’s advice to parents and his peers
- As a parent, make sure your child’s loan amount does not get too large, and start saving for their education as early as possible, since an education is just very expensive.
- As a student, choose a degree you are truly interested in, and focus completely on your education. Realize that you are investing now in order to earn a higher salary later, one you can’t get without a degree.
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.