How much does it cost to study in Milan (and how to invest to do so)

Student protests against high rents continue. The first to demonstrate was 23-year-old Ilaria Lamera, who, last, May 2, pitched a tent in Leonardo Da Vinci Square in front of the Milan Polytechnic and lived there for just under a week. Then, mobilizations spread like wildfire from Rome to Cagliari. But how much does it cost, back in Milan, to live and study in the fashion capital as an out-of-state student? Consultique Scf calculated it for We Wealth by cross-referencing several variables, from rent type to university expenses. They were also analyzing how (and how much) to invest, in the case of a family, to set aside the amount needed to ensure a future for their children in one of Italy’s most prominent universities.

High rents: how much does a studio apartment in Milan cost

Let’s first assume that an out-of-town student wants to move to Milan at the end of the summer, coinciding with the start of the new academic year 2023-2024. “We assumed a cost for the single room of 600 euros per month, while for the studio apartment a cost of 900 euros,” explains Paola Ferrari, cfa and analyst studies and research office of Consultique Scf. “In the single room hypothesis, the cafeteria was considered board, while the do-it-yourself was considered in the other hypothesis. We examined four possible scenarios, from least expensive to most expensive depending on whether one opts only for a bachelor’s degree or also for a master’s degree, on four universities in Milan: Politecnico di Milano (engineering), Università Cattolica del Sacro Cuore (psychology), Università Bocconi (economics) and Iulm (fashion).

Studying at Politecnico di Milano: how much does it cost

“Simulations show that the cost of a bachelor’s degree in Milan currently varies between 36,000 euros and 83,000 euros. If the course of study continues with a master’s degree, the cost increases by a minimum of 24,000 euros to a maximum of 60,800 euros,” Ferrari notes. In the best case scenario, to study engineering at the Politecnico di Milano, one must be willing to spend 36,149 euros living in a single room, eating at the university cafeteria, and moving by public transportation. On the other hand, those who wish to study at the Faculty of Psychology at the Università Cattolica del Sacro Cuore, opting for a studio apartment and DIY in terms of food, could spend 67,956 euros over three years.

Studying economics in Milan: the costs of Bocconi.

Suppose the course of study continues with a master’s degree, as anticipated. In that case, costs increase from a minimum of 24,000 euros to a maximum of 60,800 euros, for a total expense ranging from a minimum of 60,249 euros to a maximum of 143,976 euros. In the latter case, this is the amount that should be borne by those who intend to study economics at Bocconi University, taking a studio apartment for rent and choosing the DIY option for board. Studying fashion at Iulm, on the other hand, can cost 84,140 euros over five years, sharing the apartment with other roommates and opting for the university canteen.

How much to invest (per month) to study in Milan.

What happens if, on the other hand, we imagine that this is a family planning to have their children study in Milan, let’s assume ten years from now? “Considering an inflation rate of 2 percent, in 10 years the cost of a three-year degree could be in the range between 43,000 euros and 99,000 euros, while the full cycle (3+2) is expected to cost between 72,000 euros and 172,000 euros,” Ferrari interjects. In order to calculate how much parents would have to set aside, investing through an accumulation plan (Pac), to have the sum needed to guarantee a college future for their children, let’s imagine starting to invest in June 2023 and ending in September 2033. “Considering an investment return of 3 percent gross per annum, net of costs, for a bachelor’s degree the monthly provision ranges from a minimum of 312 euros to a maximum of 718 euros, while for a bachelor’s degree combined with a master’s degree the monthly outlay required ranges from a minimum of 520 euros to a maximum of 1,243 euros monthly,” the expert explains.

Studying Psychology in Milan: how much to save

If you intend to enroll your son or daughter in the engineering faculty at the Milan Polytechnic in 10 years, the total expense could be around 43,202 euros, as long as they share their room with other roommates and use the university cafeteria. The monthly provision in an accumulation plan amounts to 312 euros. Studying psychology at the Catholic University of Milan, on the other hand, could presumably cost 81,214 euros over three years, which is why, in order not to arrive unprepared, one would need to invest 587 euros per month.

Studying fashion in Milan: in 10 years, it will cost more than 100 thousand euros

For a bachelor’s degree combined with a master’s degree in fashion at Iulm, the total expense could be around 100,555 euros in 10 years, consistently applying inflation at 2 percent. Consequently, the monthly investment in an accumulation plan would rise to 726 euros. Finally, for a future Bocconi student, five years in the financial capital would cost 172,065 euros by renting a studio apartment and choosing DIY for food—the required accumulation spikes to 1,243 euros per month for ten years in the latter case.

Accumulation plan: how to build a portfolio from 3% per year

But how to get that 3 percent gross annual return mentioned earlier? “Considering a 10-year time horizon, one could start with an accumulation plan split 60 percent equity and 40 percent bond,” Ferrari says. “The equity component could be covered mainly using a global equity etf (at least 40 percent) and the remainder with a sector etf, for example, technology. For the bond component, diversified etf are suggested, investing globally in investment grade bonds. Marginal weight could also be given to the high yield component (maximum of 10 percent of the portfolio).” As the maturity of the accumulation plan approaches, the expert warns in conclusion, “depending on market trends, it will be appropriate to downsize the equity component and, as far as the bond component is concerned, to favor instruments with a short duration.”