Planning your child’s future is not a simple task. It takes a lot of wise decisions and early investment plans in order to invest in your child’s personal development and therefore their future and education. And to do all of that while identifying which investments are appropriate, useful and not contra productive. It is essential to recognize what you are doing – know and understand the do’s and don’ts when investing in your child’s education.
Just thinking about the financial aspect of the children’s education can cause a lot of stress for the parents. Education is the best gift you can give to your children but it is also a great investment. That is why it is important that parents make detailed financial plans of their children’s future education needs.
Timing is essential
A simple way to start saving for your child’s education fund is to start saving on time. Timing is very important – the earlier you start the better it will be for your finance and you will be less stressed when the time comes to invest in your kids education. Open an account early and regularly put a reasonable amount of money that you will use only when it is needed. The best option is to agree with your partner on the monthly sum and set automatic payments from your accounts and forget about it for a while.
Know your goals
While planning your kid’s educational fund you should try to do a calculation of the total cost. This calculation doesn’t have to be exact or precise, simply roughly estimate how much you will need, and how much you have to save each month.
You don’t have to check the ‘education’ bank account often but you should know how much money you’ve collected. You should make a research and write down the prices of the courses, practices, colleges, look for good schools you know you can afford – and add a little extra for the ‘just in case’ fund simply to know your goal.
Keep your kids involved
Also, when times comes for your children to start preparing for college you should help them search for the additional scholarships. This will help you with the financial burden if you overlooked or came across some unexpected problems that required more money than planned.
Don’t forget to remind your kids about the importance of studying and preparing for future education, especially when you are aware of the fact that they will need to apply for a scholarship. That means motivating them to engage in extra curricular activities, or to learn a foreign language; you might need to hire a tutor or opt for the reputable Sydney College of English for additional classes, in case English is not their mother tongue.
The bigger the income the bigger the rate
As your monthly income increases you should increase the amount of money that you put on the account for your child’s future. You know your budget, your financial strength and capability and that is why you should increase the sum if your family budget becomes bigger and you know that you can spare a few extra bucks.
Consistency is the key
Another very important step is to be consistent and don’t skip putting money aside on the separate bank account. You need to save regularly in order to actually achieve your goal and create a solid savings fund for your child’s future education. If you put money in the fund every month you are most likely not going to feel the lack of money while if you choose to put money in the fund yearly by adding a larger sum, it will affect your budget.
Set the right priorities
Following a savings plan usually requires setting the right priorities and cutting down on some luxuries. Your child’s education is a priority that needs to be on the first place of your list. That is why it is important to avoid spending money on things you can live without, make a better meal plan to avoid throwing away food and money, find ways to save on your bills, etc. These are all simple steps that will affect your budget and help you invest in your child’s future. Cut down on unnecessary expenses but don’t deny yourself an affordable treat every once in a while.
Follow these simple steps in order to start saving for your child’s future. The sooner you start the less hustle and bustle there will be when time comes to fill in college applications. These do’s and don’ts will guide you to your goal.