A good education is priceless But how much will it cost you?

This brochure was last reviewed in September 2013. Please confirm with your financial adviser that this is the most up-to-date document for your product or servicing needs.

The rising cost of educationNo parent questions the value of a good education. It’s the stepping-stone to a satisfying career and a self-sufficient future. It has a real economic value too as graduates tend to be higher earners.

Unfortunately that value comes at a cost to parents and grandparents.

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It pays to study the maths More and more children go on to university, which means the state is less and less able to provide for them without significant help from parents. In the UK, grants no longer exist, fees have sky-rocketed, and loans can turn into huge debts.

The Push University Guide predicted that average debts may have reached £53,000 for UK students starting in 2012, double the figure for the previous year.

Even if fees are capped, there’s the rising cost of their accommodation, computers, transport and food to consider. If your children are young now, those costs could rise to over £100,000 for three years of UK university education.

And if you’re considering educating your children privately the news isn’t any better. The 2013 Independent Schools Council survey shows school fees in the UK rose by 3.9% in 2012. Fees for UK private schools average £12,153 a year for day places and £27,612 for boarders.

If you aspire to the very best, the figures are even more dramatic. American Ivy League colleges cost around $40,000 a year, and that’s just the fees*. A figure that could easily treble by the time your children leave school.

Don’t they grow up fast?When your children are young, university or even secondary school seem a lifetime away. But they come round quickly.

Careful planning for your children’s university education can help cover the costs and spare them a debt created by high fees and increasing costs of day-to-day living. It’s a debt that could take them up to 30 years to pay back and seriously affect their ability to afford a comfortable lifestyle in the future, debt free.

Acting now will make a big difference. The cost of living is continuing to erode your saving power, so the sooner you plan, the more you can save.

*Source: http://www.topuniversities.com/university-rankings/world-university-rankings/2012

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You can’t predict what kind of education will be right for your child. If you’re reading this, the chances are you expect them to go to university and before that, perhaps a fee-paying school.

The one thing you can predict is that costs will have risen considerably by the time your children start. The question is: by how much?

What will your children’s education cost?

University tuition fees for 2012Fees detailed below give you an idea of the vast difference in educational costs around the world.

University Country Annual Domestic Annual International fee (US$) fee (US$)

Cambridge UK 14,000 - 16,000 24,000 - 26,000

Edinburgh UK 2,000 - 4,000 22,000 - 24,000

Imperial College London UK 14,000 - 16,000 38,000 - 40,000

Oxford UK 12,000 - 14,000 30,000 - 32,000

Swansea University UK 14,000 - 16,000 20,000 - 22,000

Harvard US 38,000 - 40,000 38,000 - 40,000

Washington State University US 8,000 - 10,000 20,000 - 22,000

Yale US 40,000 - 42,000 40,000 - 42,000

Australian National University Australia 6,000 - 8,000 26,000 - 28,000

University of Melbourne Australia 8,000 - 10,000 34,000 - 36,000

Indian Institute of Technology Delhi India < 2,000 6,000 - 8,000

United Arab Emirates University* UAE 8,000 - 10,000 8,000 - 10,000

National University of Singapore Singapore 6,000 - 8,000 12,000 - 14,000

University of Hong Kong Hong Kong 8,000 - 10,000 14,000 - 16,000

Source: http://www.topuniversities.com/university-rankings/world-university-rankings/2012

*All figures are for undergraduate courses. For United Arab Emirates University, the only prices available are for graduate courses.

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Whatever educational path your children follow in the future, it’s unlikely to be a cheap one. Even a standard education comes at a price now. And if your children have a unique talent that needs a more specialist education, the costs can be very high indeed.

Being clear as early as possible about the sort of education your children will require, will hopefully put you in a much better financial position to save the desired sum to cover the costs.

Talk to your financial adviser for objective adviceSpeak to your financial adviser about your education goals and Royal Skandia’s range of products available to you, all designed to help meet your investment objectives.

Whatever you do, don’t put this off. Delaying your education savings plan by just one year can have a dramatic effect on the end sums.

For your protection As the Isle of Man based arm of Skandia International, Royal Skandia is a leading provider of innovative offshore savings products and market-leading solutions for investors all over the world. During our long heritage in this market we have built an enviable reputation for technical excellence, both locally and internationally.

In short• Don’t look to the short term in education. Fees now will be vastly more in 10 years’ time

• Don’t forget living expenses, these can virtually double the yearly cost of fees.

• Don’t make assumptions about the sort of education path your child will choose. Be prepared for every eventuality.

• Talk to a financial adviser about Royal Skandia’s range of investment products.

• Relax knowing you’ve done your best for your children.

Be clear about your objectives

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be clear about your objectives

• Do you know what sort of education will suit your children best? Are they likely to want to go to university? Do they have special talents that need nurturing at a particular kind of school?

• Is the system changing where you expect to send your child? The recent rise in the cost of UK university fees on top of increasing living costs took a generation of parents by surprise.

• Do you have a savings plan in place? Is it enough to combat the impacts of inflation and low interest rates as well as rising education costs?

• Are you confident that your savings are in an economically stable environment? How do you keep control of them against different tax regimes and widely varied national laws?

The questions parents need to answer

SK8482/INT13-0610/September 2013

www.skandiainternational.com

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Royal Skandia Life Assurance Limited is registered in the Isle of Man under number 24916C. Registered and Head Office: Skandia House, King Edward Road, Onchan, Isle of Man, IM99 1NU, British Isles. Phone: +44 (0)1624 655 555 Fax: +44 (0)1624 611 715.

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Skandia International, part of Old Mutual Wealth, is the international group of companies which provides offshore and cross-border investment solutions.