Parents and guardians are strongly encouraged to save for their children’s academic future.
Recognizing the costs of tertiary education, portfolio manager of insurance leader – Sagicor Asset Management Inc -, Nicholas Neckles has advised guardians to take action as soon as possible,
He pointed out that it is much easier to save over a period of years, compared to trying to find the finances when their child reaches school age.
“If we take the example of a parent of a newborn, it would be much more manageable for them to set aside funds over an 18-year period, rather than draining their savings or taking out a loan when the time comes paid. tuition fees,” Neckles argued.
“Using this example, an individual investing in our mutual fund products with the initial minimum BBD$500 and then continuing to add to the investment the minimum BBD$100 per month for 18 years would accumulate a total of BBD$40, $203.70 based on an average annual return of six percent,” explained portfolio manager Sagicor.
Neckles asserted that the benefits of capital accumulation were reflected by examining the cost of tertiary education in Barbados and the Caribbean and further to countries such as the United States, Canada and Europe.
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“This cost burdens families and their financial capacities to continue financing their children’s attendance at these institutions, without the help of loans, scholarships or grants. If the cost to register locally is seen to be a deterrent for some, then one can immediately see the difficulty of searching overseas where the costs are significantly higher,” Neckles said.
He continued to urge parents and guardians to explore the various financial options available to save for this critical period in their children’s lives and to speak to a financial advisor or contact Sagicor Asset Management Inc for more information and guidance.
