Parents want to ensure their child’s success, even when they are away. To do this, they are willing to invest in the best education possible. This can be a major financial commitment, so considering all factors that may impact the decision is important.
Many people fail to recognise the importance of proper educational planning, only to realise its significance later. Here are six tips that can keep you on the right path:
1. Prepare a Proper Plan
Many parents overlook planning for their children’s higher education. Understanding the goals and objectives is the first step. Once the goals are clear, you should map out a plan to reach them, including a timeline, the cost and other parameters. A road map gives you an understanding of where you need to go and how. It is important to stay informed of the future educational needs of their child and create a plan to meet those requirements.
2. Start Saving
Apart from ensuring your child is academically prepared for the best higher education, you also need to introduce a proper money-saving plan into your life for future goal accomplishments. With higher education comes additional costs such as student accommodation, travelling costs, money for books, and tuition fees. And to cover all of this, you need planning, and starting a savings account is the best way to prepare for unexpected future payments.
Set aside a decided amount every month into a separate bank account which you’ll use for savings. Further, you can even make automatic small payments that can help you transfer monthly amounts from your main account to your savings account. This can assist you in cultivating the healthy habit of saving.
3. Choose Second-hand Items Whenever Possible
Current students rely heavily on laptops, tablets, and other portable devices. Since these electronic items can be expensive, you should plan and purchase them carefully. Investing in refurbished electronics can help you to save significantly while providing your child with the tools they need to be successful. Moreover, electronic items aren’t the only materials you can be bought second-hand. You can also save some bucks by going for used books, sports gear, shoes, and school uniforms.
4. Consider Scholarships
Scholarships are another useful tool to sponsor your child’s education. If your child is great at sports or is a high achiever academically, enquire about scholarship programs in their schools or colleges they wish to take admission into. Even government sponsors various scholarship programs based on your child’s performance and economic background. Enquire about the same to assist your child’s educational needs.
5. Take a Life Insurance
If a sudden death occurs, your child’s education will be affected the most, and no parent wants their child’s education to take a backseat because of uncertainty. So, whether you are suffering from a chronic illness or are hale and hearty, it is necessary to take up life insurance, especially when you have a family to feed.
Taking an education protection policy or life insurance will cover your child’s educational planning even after you are no longer there to enable their educational needs in terms of finances.
6. Think About Current and Future Inflations
Most people overlook the effect of inflation on the cost of education in the future. With prices already high, this cost is only going to increase. That’s why it’s essential to factor in future value when budgeting for your child’s education, not just the present. Otherwise, any investments made will not cover the total cost, and you will be forced to take out different educational loans.
If inflation isn’t considered, an amount that looks sufficient today may be insufficient once the goal date arrives. Failing to believe this could lead to additional expenses and effort further down the line. Hence, you need to closely monitor the effects of inflation on your education savings plan and ensure you don’t ignore its impact on the current value you are setting for your future goals.
Providing the best education for your child is a priority for every parent. To ensure your child’s dreams don’t go unfulfilled, planning is essential. A child education plan is one way to care for their higher education needs. Next, you can think of opening a high-yielding savings account that could help you with funds in the long run.
When planning, set goals, decide how much is needed, and when the goal should be achieved. This will help create a roadmap to success. Moreover, inflation should never be kept aside. You don’t want its negative impact on the value of your future goal.
Author Bio: Naina Rajgopalan has a thing for numbers and a deep fascination to learn about all things finance. She’s been money-wise from a young age and has always shared her knowledge and tips with those around her. Being a part of the content team at Freo Save, a digital savings account app that offers a 7% interest rate on savings along with benefits such as insurance on balance, safe & secure banking, and so on, Naina stays updated with the latest of what happens in the banking and fintech industries. She has taken it upon herself to share her knowledge with readers across all walks of life to help them manage their finances and budgets better, so they can make better decisions while spending, borrowing, investing and saving.