When your child picks up their first crayon, college may feel like a distant dot on the horizon. But blink, and you’re shopping for uniforms, school books, and wondering how you’ll afford tertiary education a decade from now. Whether you’re planning to send your child to college in Jamaica or overseas, saving alone won’t cut it — you must invest.

The Rising Cost of Education

Education costs continue to rise globally — and Jamaica is no exception. At The University of the West Indies, Mona campus, annual undergraduate tuition now ranges from approximately $346,533 for students from contributing Caribbean countries to $587,821; more specialised programmes can cost up to $1.76 million per year. Once you add housing, books, meals, and other expenses, total annual costs typically approach $1 million to $1.2 million, making a four-year degree cost around $4 million to $5 million today. Assuming education inflation of 6 per cent, that same degree could cost $7 million to $8 million in 10 years.

For those considering studying in the US, current international student costs (including tuition and living expenses) average US$25,000 to US$45,000 per year. A four-year degree could therefore total between US$100,000 and US$180,000, and with potential tuition increases, those numbers may climb further in a decade’s time.

Why Saving Alone Isn’t Enough

Putting aside money in a traditional savings account may feel safe, but it’s not strategic. In Jamaica, savings accounts typically offer interest rates below 1 per cent, while inflation often hovers around 5-6 per cent. That means your money is actually losing value over time.

Let’s say you start with $750,000 in a savings account and add $16,000 per month (approximately US$100) for the next 10 years. At a 1 per cent annual interest rate, your savings would grow to just over $2.2 million. That’s far short of the projected cost of a university education in Jamaica — and doesn’t even come close to scratching the surface of what you will need for overseas tuition.

The Case for Investing

Now imagine investing those same funds in a diversified portfolio, such as a US$ mutual fund, with an average annual return of 10 per cent. That same $750,000 starting amount (approximately US$4,688), with consistent annual additions of US$100 per month, could grow to over could grow to US$38,000 by year 10. That’s more than $6 million, putting you in a much stronger position to cover tuition, housing, and other costs when your child heads off to university, whether locally or abroad.

By starting early, investing consistently, and choosing the right financial products, you give your money the time and power to grow. Products like US$ mutual funds, US$ global bonds not only beat inflation but also provide the flexibility to add funds regularly as your income grows.

Final Thought: Invest in Their Future

From the first crayon scribble to the day they walk across a graduation stage, every step your child takes will be built on the foundation you lay today. Saving is a start but investing is how you get to the finish line.

Speak with a licensed investment advisor to explore the best options for education planning. Because when it comes to your child’s future, there’s no time like now to start.

Tuition sources:

• University of the West Indies, Mona Campus – Undergraduate Fee Schedule 2025–2026 (mona.uwi.edu)

• Studies Overseas – Cost to study in USA for international students (studies-overseas.com)

Toni-Ann Neita-Elliott, CFP is the vice-president, sales & marketing at Sterling Asset Management. Sterling provides financial advice and instruments in US dollars and other hard currencies to the corporate, individual and institutional investor. Visit our website at www.sterling.com.jm

Feedback: If you wish to have Sterling address your investment questions in upcoming articles, e-mail us at: info@sterlingasset.net.jm

Toni-Ann Neita-Elliott.