Sending Your Kid to University? Here's How to Raise Funds​​

University costs are the #1 college concern parents have. According to the EAB’s 2024 survey, as many as 60% of parents are worried about them. In fact, college funds ranked higher than scholarships (40%) and student debt (39%). 

If you’ve been researching college prices and your anxiety started kicking in, you’re in the majority. And, there’s no need to panic as you have plenty of options for raising uni funds. 

Time can be an ally regardless of what you’re saving for due to compound interest. This is practically a snowball effect of “interest on interest” — any interest you earn on your savings or investment becomes a part of the balance your future investment is calculated with. Therefore, the sooner parents begin to set aside funds, the more they benefit from compound interest over the years. Even small monthly contributions can grow substantially if invested for 15+ years. 

Let’s say that your initial investment is QAR 4,000. If you save about QAR 700 per month at a 5% interest rate for 18 years, you’d accumulate more than QAR 255,000. 

Starting early also allows you to spread the savings effort over many years, avoiding a sudden scramble during the high school years.

Investing is a wise way to add more funds to your child’s college fund. But you should align the investment based on your child’s age and time of enrollment. 

When your child is young, say, 10 years or more away from college, you’ll be able to invest more aggressively. For instance, you can put in a higher proportion in stocks or stock mutual funds, which historically return ~7-10% annually over long periods (though with short-term ups and downs). This gives your money the best chance to grow faster than college cost inflation, which is around 3% for Qatar, about 3% for the U.S., and 5% for the EU.

As the college start date gets closer (within five to seven years), you’ll want to dial down the risk to protect what you’ve accumulated. Shifting to a mix with more bonds, bond funds, or cash helps preserve capital in case of a market downturn right before the tuition is due.

Also, keep an eye on college cost projections. If your child is a toddler now, anticipate what college might cost in 15 years. With 4% annual inflation, today’s QAR 98,000 public university year could cost roughly QAR 174,000 in 15 years. 

One of the best ways to lessen the financial burden is to secure money that you don’t have to pay back. This usually includes scholarships and grants. 

Countries provide grants and aid to students in need. In Qatar, aside from government aid, students can apply for grants at foundations such as the Qatar Foundation. 

Furthermore, the most prominent European and American universities offer scholarships to students, especially international ones. There are also international schools like Georgetown University in Qatar that provide scholarships to Qatar residents as well. 

So, ask your child to start looking for scholarships and grants early in high school, not just in the spring of senior year. There are dozens of options out there based on academics, sports, community service, hobbies, intended major, background, needs, and more. 

Encourage your kid to earn some money during college. Many parents worry about their children juggling work and school, but a reasonable amount of work can provide valuable time management and responsibility lessons.

To explore your options, check out the country’s regulations on part-time work. If you’re based in Qatar, Jusour offers a student part-time work program with basic requirements such as a Qatari ID and university enrollment. 

Alternatively, you can check out university websites, as most of them support working while studying. For instance, Qatar University enables students to apply for administrative and academic positions within the college. Moreover, Georgetown University Qatar regularly sends out employment opportunities to all of its students. 

If you want to keep all of the money you’re saving for your kid’s college in one place, you should consider special education-focused savings accounts. Their contributions are typically lower than for regular plans. Therefore, your initial investment won’t be high. 

Some institutions that offer these plans allow for specialized saving systems, allowing you to tailor the program based on your needs and your child’s age. In addition, you can choose a plan that offers additional insurance protections in case of illness and unfortunate events, providing even more protection to your child. And, if you want additional protection in case of accidents, job loss, or illness, you should consider investing in school fees protection. This way, if your child is prevented from attending college or you’re unable to pay their fees, they’ll get a full year’s school fee coverage. 

What’s more, QIB even offers a Bedaya account tailored specifically to students to allow them to manage their money when they start their studies.