In 2018, the cost of international school tuition and related expenses in India increased by 18%. During the pandemic years, prices stagnated, and many schools invested in digital infrastructure to cope with virtual teaching. With the pandemic nearly over and life gradually returning to normal, these expenses must be recouped and will most likely entail increasing tuition fees again.

The cost of raising a child has increased by 62%, from £140,398 in 2003, to over £227,000 today. The increasing cost means that parents are now spending, on average more than a quarter (28%) of their annual income on raising their child each year - up from 23% a decade ago.

A plan to supplement private school tuition needs to be implemented to counteract these increases. Savings plans like Catalyst from deVere are one of the best ways to accumulate the money required to pay for rising education costs. 

Currently, the most expensive international schools are found in Asia and the USA, with Europe and the Middle East coming in second and Africa still the most affordable.

 

What are the average tuition fees of international schools? *

  New York - $35 000 - $48 000  

  Beijing - $28 000 - $39 000

  Shanghai - $24 000 - $43 000 

  London - $14 000 - $29 000  

  Geneva - $23 000 - $28 000 

  Singapore - $14 000 - $26 000

  Brussels - $14 000 - $23 000

  Hong Kong - $15 000 - $23 000 

  Tokyo - $14 000 - $21 000 

  Milan - $8 000 - $18 000

  Paris - $9 000 - $17 000 

  Barcelona - $7 000 - $13 000  

  Abu Dhabi - $6 000 - $13 000

  Algarve region - $6 000 - $7 000 

  Amsterdam - $5 000 - $19 000 

  Kuala Lumpur - $4 000 - $9 000

  Nairobi - $5 000 - $15 000

  Chiang Mai - $6 000 - $9 000

  Ho Chi Min City - $10 000 - $21 000

  Johannesburg - $6 000 - $7 000

 

What is an education savings plan?

Education costs have been on the rise, especially for English tuition. You need to consider not just the cost of tuition but also the extra costs that accompany education.

These fees could include the following:

• Admin/registration
• Textbooks
• Stationary
• Accommodation and living expenses
• Equipment
• Memberships in clubs and societies
• Travel

An education savings plan is a regular contribution plan that allows you to make monthly contributions into an investment and is managed on your behalf by fund managers. They ensure that the investment is suitably diversified and earns a decent interest rate so the capital can grow. The savings is usually over a medium to long term of 7-20 years, depending on how old your children are. The longer you contribute, the more your regular savings will grow and earn compound interest. 

A financial advisor can help determine your monthly contributions according to how much of your disposable income you can afford and devise a plan accordingly. Ideally, you should start when your children are still small so that you can save over the long term, allowing you to build enough savings to cover their later education. 

 

As more and more ex-pats work abroad, the demand for schools and colleges will increase, making tuition more expensive year after year. The cost of international schools for ex-pats could eat away at your disposable income or even your savings. Don’t get caught off guard or wait until you can’t afford the best schools. Starting an education savings plan early could allow for tuition without breaking the bank.

Chat with your deVere advisor about investing in the future of your children.

 

* The cost of international education around the world in 2021 international-schools-database.com

 

Please note the above is for educational purposes only and does not constitute advice. You should always contact your deVere advisor for a personal consultation.

* No liability can be accepted for any actions taken or refrained from being taken as a result of reading the above.