How to Save for Your Children's Education: A Step-by-Step Plan
Saving for your children’s studies is about starting early and steadily so that compound interest does the heavy lifting. In 2026, a full public degree in Spain costs between €3,000 and €8,000 in tuition fees, and a private one between €5,500 and €20,000 a year; if the child studies outside Mallorca, accommodation can exceed €6,000 a year. By contributing about 100-150 euros per month from birth, with a long-term savings product, you can get there comfortably. The later you start, the more you will have to save each month.
When a child is born, university seems far away. And suddenly he/she is 17 years old, wants to study in Barcelona or Valencia and you start to think about it. I tell you how to plan it from Mallorca without stress, with real data from 2026 and without selling you any miracle product. Because saving for your children’s studies is not about finding the perfect investment: it is about starting early and being constant.
How much does it cost to study for a university degree in Spain in 2026?
Studying for a degree in Spain in 2026 will cost between 3,000 and 8,000 euros for full tuition at a public university, and considerably more if it is private or if the student lives away from home. The range is wide because it depends on the community, the type of studies and, above all, whether accommodation has to be paid for.
| Concept | Approximate cost 2026 |
|---|---|
| Public grade tuition (full) | 3.000 – 8.000 € |
| Private university tuition (annual) | 5.500 – 20.000 € |
| Room for rent | 350 – 700 €/month |
| Materials and books | 300 – 800 €/year |
| Lodging + meals outside (annual) | from 6.000 €. |
For a family in Mallorca, the item that almost never weighs the most is the tuition: it is the cost of sending the child to study abroad. According to the public prices regulated by the Ministry of Universities, the fees are affordable, but a four-year degree living in the peninsula can go over 30,000 euros all together.
How much do I need to save per month for my children’s college?
It depends on when you start. If you start from birth, with about 100-150 euros per month and a moderate average return, in 18 years you accumulate enough to cover a career with a stay abroad. If you start when the child is 10 years old, that figure shoots up to 300-400 euros per month to reach the same.
Why so much difference? Compound interest. The money you contribute soon has years to generate returns, and those returns in turn generate more returns. It’s the most powerful tool you have, and it only works with time. That’s why the best decision is not to choose the perfect product: it’s to start as soon as possible, even if it’s with little.
What products can I use to save for my children’s education?
There is no single product: the reasonable thing to do is to combine security and profitability according to the remaining years. When the horizon is long (more than 8-10 years) you can assume a little more risk; when the date approaches, it is advisable to protect the accumulated.
- Savings account: full liquidity and security, but low profitability. Useful for immediate cushion.
- Fixed-term deposit: slightly higher yield if you already have an initial capital.
- Conservative or mixed investment funds: for the long term, they seek to beat inflation with controlled risk. You can find more information on the CNMV investor portal.
- Savings insurance and PIAS: periodic contributions with a target and, in some cases, tax advantages if maintained over the long term.
The key is to reduce risk as you get closer to paying for college. You don’t want a market crash the year before tuition to eat into your savings. This is just what I work on in family wealth planning: tailoring the product to the term and profile of each family.
When should I start saving for my children’s education?
As soon as possible, without exception. Starting the year your child is born is ideal, because you have 18 years ahead of you for compound interest to multiply each euro. But if your child is already 8 or 10 years old, it is not too late: you will simply have to contribute more each month and be more prudent with the risk, because there is less margin to recover from market fluctuations.
The important thing is consistency. An automatic monthly savings -that comes out of the account without you having to think about it- yields much more than large but sporadic contributions. Discipline trumps quantity. If you find it hard to keep the habit, automating it solves it: I explain why automating your savings can change your life.
Why in Mallorca is it convenient to count on the cost of studying outside the island?
Because the university offer in Mallorca is limited. The University of the Balearic Islands covers many degrees, but not all of them: medicine with very limited places, certain engineering, architecture or some double degrees push many young people to the mainland. And there the budget changes scale.
A family from Palma whose child wants to study a degree that is not taught at the UIB has to add flights, a room in another city and maintenance. We are talking about several thousand euros a year extra. Planning with a margin prevents the child’s academic decision from depending on whether there is money that year or not. That’s the difference between having a plan and improvising.
Frequently asked questions about saving for your children’s education
How much should I save per month to pay for my child’s college education in Mallorca?
If you start from birth, between 100 and 150 euros per month is usually enough to cover a career with a stay outside the island, with a moderate return in the long term. If you start later, the figure rises proportionally. It is advisable to first set the target (tuition plus estimated accommodation) and calculate the monthly contribution backwards from the current age of the child.
Is a savings insurance or an investment fund for children’s education better?
It depends on the term and your risk tolerance. For long horizons, a conservative or mixed fund usually offers higher returns. Savings insurance provides discipline and predictability, with regular contributions and a clear objective. Many families combine both: the fund to grow capital in the early years and a safer product when college approaches.
What happens to the money saved if my child ultimately does not go to college?
Savings are not lost: they remain yours and you can use them for something else. If your child decides to do vocational training, start a business or study abroad, the accumulated capital is of no use to him or her. That is why it is better to use flexible products that allow you to redeem or redirect the money without major penalties, rather than instruments that are too rigidly tied to a single purpose.
Should the savings be put in the child’s name or in the parents’ name?
In general, it is more practical to keep it in the parents’ name while the child is a minor, for control and flexibility. Putting assets in the name of the minor may have tax and availability implications. If the objective includes passing on assets, it is advisable to analyze the taxation of donations in the Balearic Islands before deciding on the ownership, because the community has a very favorable treatment that is worth taking advantage of.
When NOT to use a rigid savings plan for studies
A student savings plan is not the best idea if:
- You don’t have an emergency fund yet: protect the day-to-day contingencies first.
- You carry expensive debts: paying them off yields more than any long-term savings.
- The product binds you with high penalties and you will not be able to touch the money in an emergency.
- There are only a few years left and only risky products are on the table: close to the date, prioritize safety.
Plan your children’s future wisely
Saving for your children’s studies is one of the financial goals that gives you the most peace of mind when it is well planned. As a family financial planning advisor in Mallorca, I help you to calculate how much you need, to choose the products according to the term and to adjust the plan every year. The first consultation is free and without obligation. Call me at 660 845 921 and we will set up your children’s plan.
