Tuition fees for higher education is a leading concern for 70 percent of parents in the UAE, however, only less than a third of parents have an education savings plan in place, a new study showed.
In the survey commissioned by Zurich International Life, 39 percent of families are digging deeper into personal savings and 15 percent have resorted to taking personal loans to keep up with high tuition fees.
The survey covered over 1,500 GCC residents from UAE, Saudi Arabia, Qatar and Bahrain from various grouped segments, results were appalling as with the increasing cost of education and other additional expenses, majority of those surveyed had no savings plan in place.
Most used monthly income or relied on personal savings and loans. On the contrary, parents who have invested in a savings plan said that key influential factors were social circles and financial advisors.
“With the increasing cost of education and uncertainties of life, parents should seriously consider investing in a structured savings plan to support their child’s education,” said Rayner Britto, Head of Distribution at Zurich International Life.
“43 percent of the parents surveyed said that a better understanding of education savings plans and their benefits would motivate them to invest in the same,” he added.
Education in the GCC is a sector of continuous investments and developments which directly affects the payment structures as, more resources means higher fees.
Earlier this month RTA announced that it equipped school bus fleet with GPS tracing and emergency measures. At the beginning of this year Abu Dhabi announced their aim to ‘future-proof’ students with a new educational approach that will help master 21 skills across seven key competencies.
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