How to Save for Your Child’s Education in Saudi Arabia

Posted on: 6th December 2024 in Education Planning

As parents, we all dream of giving our children the best opportunities in life, and a quality education is one of the most important gifts we can provide.

However, with the rising costs of education, especially in Saudi Arabia, planning ahead has never been more critical. Whether your goal is to enrol your child in an international school or save for their university years abroad, having a solid savings plan is key.

In this guide, we’ll walk you through practical steps to save for your child’s education, tailored to families in Saudi Arabia.

Understanding Education Costs in Saudi Arabia

Saudi Arabia offers a variety of education options, and the costs can vary widely depending on your choice.

• Public Schools are free for Saudi nationals, providing a solid foundation based on the national curriculum in Arabic.
• Private Schools offer more diverse curricula, often blending Arabic traditions with international standards. Tuition fees here can range between SAR 20,000 and SAR 100,000 per year.
• International Schools are popular among expatriates and locals seeking global standards. These schools follow systems like the British, American, or International Baccalaureate (IB) curricula, with fees often exceeding SAR 100,000 annually.

In addition to tuition, you’ll also need to budget for uniforms, transportation, extracurricular activities, and materials.

For university, costs can rise even higher, especially if your child studies abroad. Tuition alone can range from $10,000 to $50,000 annually, not including living expenses.

Start Early: The Key to Success

One of the smartest moves you can make is to start saving as early as possible.

The earlier you begin, the more time your savings have to grow, thanks to the power of compound interest. For example, putting aside SAR 2,000 per month starting when your child is born can accumulate significantly more than starting the same plan when your child is 10 years old.

Set Clear Goals

Before diving into savings, it’s essential to define your goals. Ask yourself:

• What type of school do I want my child to attend?
• Will they study abroad for university?
• How much can I realistically save each month?

Breaking these goals into manageable milestones will give you a clearer sense of how much you need to save and by when.

Explore Education Savings Plans

To meet your goals, consider exploring specialised savings plans tailored to education.

• Dedicated Education Savings Plans: These plans are designed to grow your money steadily over time, ensuring it’s ready when you need it.
• Investment Accounts: For higher potential returns, you can consider mutual funds or stocks. While riskier, these options may provide better growth over the long term.
• Sukuk Investments: If you’re looking for Shariah-compliant options, Sukuk (Islamic bonds) could be an ideal choice.

Consult a financial advisor to determine which option best suits your family’s financial situation and risk tolerance.

Maximise Employer Benefits

If you’re employed, don’t overlook the possibility of education allowances.

Many companies in Saudi Arabia, especially those hiring expatriates, offer benefits to help cover schooling costs. These benefits can significantly reduce your out-of-pocket expenses.

Even if your employer only offers partial support, it’s a good idea to include this in your overall savings plan.

Budget for the Extras

Education costs aren’t limited to tuition. You’ll also need to factor in additional expenses like:

• Transportation: School buses or private transport can add up quickly.
• Uniforms and Supplies: These are recurring costs that vary by school.
• Extracurricular Activities: Sports, music, and art programmes often come with extra fees.

Setting up a separate savings account for these miscellaneous costs can help you manage them more effectively.

Scholarships and Financial Aid

For university, scholarships and financial aid can make a big difference.

Encourage your child to excel academically and explore programmes that reward high achievers. Many international universities offer scholarships specifically for students from the Middle East, so don’t hesitate to do some research.

Think About Currency and Relocation

If you plan to send your child abroad for university, currency fluctuations can impact your savings. Consider hedging against these risks by saving in the currency of your destination country.

Additionally, if there’s a chance your family might relocate, choosing a school with an internationally recognised curriculum, like IB, can ensure a smoother transition.

Tools to Simplify Your Savings

Take advantage of tools and resources to make saving easier:

• Education Savings Calculators: These tools can help you estimate how much you need to save each month to reach your goal.
• Automated Transfers: Set up automatic transfers to your savings account to ensure consistency.
• Financial Advisors: Partnering with an advisor can help you create a personalised plan that fits your needs.

Act Today for a Brighter Tomorrow

Saving for your child’s education is a long-term commitment, but it’s one that pays off in immeasurable ways. By starting early, setting clear goals, and using the right financial tools, you can give your child the best possible start in life.

At Holborn Assets, we’re here to help. Our education savings solutions are tailored to families in Saudi Arabia, and our expert advisors are ready to guide you every step of the way.

Contact us today to take the first step towards securing your child’s educational future.