For most parents, few moments compare to the pride of watching your child graduate from high school, knowing this is the moment they step into the real world, ready to pursue the dreams they have only ever talked about.

It's also a time of deep reflection, taking you back to their nervous little face on the first day of school, the excitement of picking them up and hearing every detail, and the overwhelming relief that it all went well.

You find yourself wondering how 12 years slipped by so quickly. Your daughter walked through those school gates with pigtails, and now she stands at graduation in make-up, with shaved legs, grown up in ways you could never have imagined.

The reality is that for most families, the conversation about post-high school plans begins around the dinner table several years earlier, with your child expressing an interest in something they would like to explore once they finish high school.

I remember that conversation quite clearly in our house. I had expressed early on how much I wanted to work with animals and become a vet, which I’m sure made my parents a little nervous, thinking about how they were going to afford those fees.

However, luckily for them, my interests shifted after doing work experience in Year 11 and seeing the not-so-pleasant side of becoming a vet. But in all honesty, looking back, my parents had four children, and I often wonder if they had truly considered what funding tertiary education for all of us would cost.

Let's face it: the options for funding children's education have certainly expanded over the past 30 years. However, one thing that remains difficult to plan for is the relentless rise in annual tuition fees. Therefore, it is evident that long-term planning is still a critical factor.

Scholarships and bursaries

Scholarships and bursaries can offer a way to fund full or partial university tuition fees on an annual basis. However, applications come with specific stipulations. As of my February 2026 research, the four donors below consistently support qualifying students:

• Government scholarships through the Ministry of Education

• Association of Bermuda International Companies

• Centennial Bermuda Foundation

• Bermuda Hospitals Board

It is very important to note that not every child will succeed in the application process, and even if they are awarded a scholarship, they may not maintain the academic grades required to renew it. Therefore, I strongly advise against relying solely on scholarships or bursaries as a university funding solution.

Savings

Using your own savings to pay for your children's education gives you full control over the money. A reliable way to do this is to start setting funds aside as early as possible, even from birth, allowing the savings to grow over time. For example, saving $500 a month at a 4 per cent annual compounding interest rate for 15 years would result in a university fund of approximately $123,455.

Whole life insurance

Over the past decade, there has been a significant increase in the use of whole life insurance as a strategy for funding university education. As a permanent policy, whole life insurance builds cash value over time that you can access while still alive.

Here is how it works: you pay annual premiums, which are typically higher than term insurance. A portion of those premiums goes towards the death benefit, while the remainder builds a deferred cash value.

By the time your child reaches university age, you can access this accumulated cash value through either a withdrawal or a policy loan. If you are considering this approach, it is essential to start early to allow sufficient time for the cash value to grow. Be sure to consult with your life insurance agent to thoroughly discuss the pros and cons.

Student loans

Student loans should only be considered after all other options have been exhausted. They tend to be the most stressful and restrictive form of education funding, yet they play an essential role by making higher education accessible to students who have no other means to pay for it.

The danger of student loans is not just that you owe money. The danger is that you have exchanged an uncertain future income for a very certain monthly payment. If the income does not materialise as expected, the loan becomes a financial anchor that can drag down every other aspect of your life for decades.

Heritage Education Fund

Another popular choice in the past, and still used today, is the Heritage Education Fund — a US dollar-denominated education savings programme offered in Bermuda through Heritage Education Funds International.

It enables parents and grandparents to save systematically for children's postsecondary education costs, typically starting from birth up to age 14, via monthly, annual, or lump-sum contributions invested in secure fixed-income securities.

Furthermore, it imposes minimal restrictions on universities, allowing use at any accredited, recognised postsecondary or tertiary institution worldwide, including universities, colleges, or vocational programmes, without geographic or prestige limits.

At the end of the day, planning your children’s university funding is crucial to securing their future without crippling debt.

Early planning allows you to leverage the power of compound interest, making even small, regular investments grow significantly over time.

It helps you estimate future costs, set realistic savings goals, and choose the right vehicles, like education savings accounts. A solid plan prevents last-minute financial stress, ensuring your child can focus on studies rather than loans.

By starting now, you provide them with the invaluable gift of opportunity and a strong financial foundation for their adult life.

•Carla Seely has 25 years of experience in the international financial services, wealth management, and insurance industries. During her career, she has obtained several investment licences through the Canadian Securities Institute. She holds the ACSI qualification through the Chartered Institute for Securities and Investments (UK), the qualified associate financial planner (QAFP) designation through FP Canada, and the associate in insurance (AINS) designation through The Institutes. She also completed a Master’s Degree in Business and Management through University of Essex

•For further inquiries or suggested topics, e-mail justaskcarla@outlook.com