Important Links

Setting up for success: Why education may continue to pay

25 October 2017HighlightsEquities

Setting up for success: Why education may continue to pay

  • 2013 research indicates that graduates earn £250,000 more than non-graduates in a lifetime
  • Factoring education costs into your investment plans may give your children greater future opportunities

A study by the Department for Business, Innovation and Skills in 2013 indicated that graduates could earn a lifetime average of £250,0001 more than their non-graduate contemporaries, and today education can be still seen as imperative for setting your child up for the best possible future.

Indeed, with artificial intelligence, augmented reality and other means of automation increasingly becoming the norm, FutureScape: Worldwide Robotics 2017 Predictions suggest that developed nations are to rely on education more than ever before to remain competitive2 – as well as to nurture the next generation of innovators.

That also means that coding, programming and other science-based disciplines could be needed more in the future than ever before. While the UK Government say that medicine and dentistry3 are seen as the most valuable degrees to hold in 2017, subjects such as engineering, mathematical sciences and computer sciences are also among the top 10 most valued degrees. Any surge in demand for these courses could increase their value too.

Students are seeking opportunities abroad

The benefits of a degree could stretch far beyond earning power, however. Further education may provide undergraduates with a broader view of the world – particularly if students choose to study abroad.

Upping sticks to study abroad is becoming more common too – in the past four years (from 2013 to 2017), students applying to US colleges from the UK has increased by 31%. 11,600 British students are already studying across the pond according to educational organisation Fulbright Commission, and this figure will only increase in the coming years.

In addition, making international contacts while studying may create ample opportunity for future business opportunities.

In a recent webinar, Citi spoke to experts on the future of education, where the importance of nurturing contacts at university was discussed– especially where science, technology and mathematics subjects are concerned.

When asked about the desired skills of the future, Ayesha Khanna, co-founder and CEO of ADDO AI, said that contacts are important to remain competitive. "Technology is a way to tinker and to innovate. That is the future of education – using technology as a language for creativity, and then using collaboration as a way to come up with new ideas."

The rising cost of education

In spite of Theresa May's proposed freeze on tuition fees, a study by the Institute for Fiscal Studies suggests that today's students are expected to graduate with average debts of £50,8004. If reforms go ahead, they'll start to repay this once they earn more than £25,000 – though the current threshold stands at £21,000.

However, US college fees are even more expensive – after factoring tuition and board, Harvard typically costs £46,000 per year5, for example.

With the possibility of costs continuing to rise, factoring your offspring's education into your investment planning could help to stand them in the best stead for the future, and this is something Citigold can help with.

"In consultation with our client's tax advisors, we have recently helped our clients with school fees planning", says Citi Relationship Manager, Christopher Paris.

"It gives my clients great comfort knowing they have the most suitable tax efficient structure in place when passing down their wealth."

To help manage your wealth on your terms, Citigold can offer help and advice tailored to your life ambitions.






Our recent research

Potential Headwinds for US Equities

With just 4% of the world population, new cases in the US are near 30% globally. A more sustained US fiscal response may be necessary and investors are also starting to focus on the US Presidential elections in November.

Find out more


Takeaways from COVID-19 Decouplings

Traditional financial market relationships have been stress-tested by COVID-19, economic lockdowns and aggressive central bank actions. Citi analysts highlight the most interesting breakdowns and potential investment implications.

Find out more


Addressing Key Questions on Hong Kong

Amid tensions between US and China, Hong Kong's prospects have come under pressure. Citi analysts share their views on key financial and economic questions from investors.

Find out more

Asia PacEmerging MarketsEquities

Take the first steps to your wealth management planning with Citi

Speak to a Relationship Manager
0207 500 1992

Already with Citi? Contact your relationship manager or view product availability on Citi Online

Why choose Citi

A relationship - not just a bank account

A dedicated Relationship Manager giving you access to our internal team of product experts and all our benefits

Access to exclusive Citi products

A range of current and investment products available both on shore and offshore, in the currency of your choice
Multi-currency accounts
Investment products

Global services for a global lifestyle

Our team is here to support you getting started in UK or with International travel and relocation
Moving to and from the UK
Travelling overseas

Offshore investments

We offer a diverse range of banking and investment services, including for those who want access to offshore investments

Find out more

Just moved to the UK?

We can save you time money and hassle. If you are a foreign national in the UK, Citi's International Banking Service can help you manage your money, home and away.

Find out more

Investment products are not insured by any governmental agencies, are not bank deposits, and are neither obligations of, nor guaranteed by, Citigroup, or any of its affiliates, unless otherwise stated. Investment products are subject to investment risks, including possible loss of some or all of the principal amount invested. Past performance is not indicative of future results, investments can go down as well as up.

“Citi analysts” refers to investment professionals within Citi Research (“CR”), Citi Global Markets Inc. (“CGMI”) and voting members of the Citi Global Investment Committee. Citibank N.A. and its affiliates / subsidiaries provide no independent research or analysis in the substance or preparation of this document. The information on this page has been obtained from reports issued by CGMI. Such information is based on sources CGMI believes to be reliable. CGMI, however, does not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute CGMI’s judgment as of the date of this page and are subject to change without notice. This page is for general information purposes only and is not intended as a recommendation or an offer or solicitation for the purchase or sale of any security or currency. No part of this page may be reproduced in any manner without the written consent of Citibank N.A. Information on this page has been prepared without taking account of the objectives, financial situation, or needs of any particular investor. Any person considering an investment should consider the appropriateness of the investment having regard to their objectives, financial situation, or needs, and should seek independent advice on the suitability or otherwise of a particular investment. Citi Research (CR) is a division of Citigroup Global Markets Inc. (the "Firm"), which does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this information. Investors should consider this information as only a single factor in making their investment decision.

Opinions expressed herein may differ from the opinions expressed by other businesses or affiliates of Citigroup, Inc., and are not intended to be a forecast of future events, a guarantee of future results or investment advice, and are subject to change based on market and other conditions.