Starting from the fact that nowadays, in all countries of the world, the higher education financing calls for the search of "innovative methods", as well as due to out-dated financing mechanisms for investment in domestic higher education, there appeared to be a need to revise the public and private financing system of education and their connection to contemporary realities, which demonstrates the actuality of the research theme. The purpose of the research consists in a comparative analysis of the higher education financing system in the European Union and the Republic of Moldova and to identify good financing practices that would contribute to the development of educational human capital and to improve the quality of life. In order to achieve this goal, the following research methods were used: the analytical method, through which the essence of the researched processes was reached; the descriptive method used to describe the funding methods of studies in higher education; the method of quantitative and qualitative analysis, which was applied to the analysis and interpretation of the indicators; the benchmarking method applied for comparing expenditures for education in the Republic of Moldova with those in OECD countries, priority countries of the European Union, etc.   As a result of the analysis of the research situation, the authors summarize that massive and efficiently managed investments in educational human capital are important for economies that tend to be competitive and, at the same time, to ensure a better quality of life. The authors consider it is necessary to improve the mechanism of public studies financing in the domestic higher education. Along  with the countries aspiring to a deeper integration into the European Union, the Republic of Moldova must rally its education systems to the European standards in the field. It should implement new financing methods, including an important place for funding based on academic performance and results, as well as innovation-oriented funding, and the government to become an active investor in education, promoting various financial instruments for financial and fiscal support of higher education, including grants, repayable loans and other financial-fiscal benefits.