Preparing for Your Future Finance Options 2

If you’re considering an Executive MBA, you may wish to start saving money now, even if it’s some years before you step into business school.

Having money set aside that you can put towards your EMBA is smart preparation for the investment ahead. After all, it’s not just the tuition fees that need to be paid – as both business school experts and alumni have highlighted, there are additional costs that need to be taken into account.

Jonathan Davis, a chartered financial planner, and managing director of Jonathan Davis Wealth Management Ltd, says an EMBA is hugely expensive so the first thing candidates should be absolutely certain of is that they will make a good return on their financial and personal investment.

“For those candidates looking at funding the EMBA personally, it’s important to prepare their finances in advance,” Davis says. “They will need to save a lot each and every month while working full-time and build up capital to pay for fees.

“If candidates only have a few years to save, then putting their finances into a competitive deposit account is a prudent option,” Davis adds. “A fixed term account of say three years, may obtain a slightly greater return.”

However, Davis warns those candidates who are taking risks with a managed investment portfolio. “It could fall flat on the saver’s face if they have to cash in at the wrong time. It would only increase the risk to take on debt to finance the course. So, this should be a last resort.”

Other finance options

Aside from the more popular means of EMBA financing (company sponsorship, loans, personal finance), there are other options available to you. More and more business schools are offering scholarships to Executive MBA candidates (although full-time MBAs still have the majority share of scholarship options).

Warwick Business School in the UK offers scholarships for EMBA candidates, awarded on a merit basis. “In other words, we give these scholarships to those applicants who we believe will be a significant contributor to the class,” says Killian. “We would expect them to do well academically, but also to be someone who works hard within their syndicate group, who encourages and involves others and who will lead by example. The recipients are those candidates who we think the other students will really value just having around.”

At IE Business School in Spain, admitted EMBA candidates can apply for a broad range of scholarships based on their profile, for example geographic location, sex, experience, or alumni status with IE and other partner universities. “Scholarships are usually determined according to three main areas: the candidate’s profile, diversity and financial need,” explains Nadarajah.

“I advise candidates applying for scholarships to be clear and concise in their application, to ensure that they outline their financial plan for financing the program, both with and without a scholarship, and to bear in mind the three criteria listed above.”

Those schools that don’t (yet) have scholarships for EMBA candidates, have other financing options available instead. Fordham University is one such example. “There are no official EMBA scholarships at Fordham University at present,” says Petit, “however there are various graduate assistantships available, usually for EMBA students employed in the nonprofit sector. Our goal is to grow these initiatives for current and prospective students,” he says.

Also in the USA, EMBA Worldwide at the Katz Graduate School of Business, University of Pittsburgh, welcomes self-sponsoring candidates, but as Anne Nemer, assistant dean for Executive programs explains, the school offers some travel scholarships as well as scholarships for diversity candidates in addition to facilitating applicant access to federal funding.

Meanwhile, at the University of Zurich, Mario Ramò, managing director of the Executive MBA says the university doesn’t offer EMBA scholarships but is quite flexible when it comes to the payment of course fees. “Quite often, we reach an agreement with our candidates on individual payment schemes.”

Words of advice

Despite a wealth of finance options available to EMBA candidates, there is still the question of where to begin the preparations for such an investment. Speaking from experience, Jerneycic says: “Start by researching public funding options, interest rates, and repayment plans. Also, contact your local bank and determine if they offer graduate student loans and at what interest rate. If you plan to fund the EMBA entirely out of pocket, I would definitely consult your financial advisor to determine the most cost-effective way to use your personal assets. Again, the ideal scenario to me would be to contact your human resources department to determine if you can get tuition reimbursement from your current employer. Even if a formal tuition reimbursement program does not exist, I would recommend talking with your manager and letting him/her know your goals.”

Whatever combination of finance options you eventually take to see your Executive MBA goals come to fruition, it’s important to be prepared. Weighing up the costs, the risks, and the rewards of embarking on this degree will ensure your time spent in the classroom is time dedicated to all the Executive MBA has to offer. Instead of worrying about your finances, shrewd preparation beforehand will enable you to get the most out of your business school experience.

As Nemer, says: “Obtaining an EMBA degree is one of the most profitable investments a business professional makes, which generates returns in accelerated career progression and longevity. Prioritising this investment is the strongest financial advice I can give.”