Getting a double degree is becoming popular among students in Australia, and for good reason. For one thing, it provides broader education. This can help you get the best of two contrasting fields of study in case you can’t decide what you want. Passionate about two different fields? Having two university degrees can help you get both. Also, it gives you a competitive advantage, since you have a wider range of knowledge and skills.
If your kids want two university degrees, one way to fund it is to get an education savings plan. And education savings plan is designed for saving for tertiary education.
Having two university degrees has its advantages, but it can be one of biggest expenses of the family. Parents want their kids to have the best education they can possibly give, so it is important to plan for it through saving money. If your kids want two university degrees, one way to fund it is to get an education savings plan. And education savings plan is designed for saving for tertiary education.
Here are some of the things that you need to know about this type of product:
An education savings plan and tax
The earnings on an education savings plan are taxed as income and paid directly to the nominated child. When you withdraw proceeds of an education savings plan to be used for eligible education costs, there is no further tax to be paid.
Withdraw money for eligible education expenses
You can access your money from an education savings plan whenever you want, but it should only be used to fund eligible education expenses such as fees for primary, secondary, and tertiary education. Otherwise, you may pay a penalty tax.
Make contributions monthly or lump sum
In general, individuals who are more than 16 years old can already make contributions to an education savings plan. It can either be monthly or an initial lump sum. Contributions can also change depending on your current situation or personal circumstances.
Final Thoughts on Saving For 2 Degrees
Education expenses vary depending on the state, level and type of school, and courses to take. But one thing is certain – education costs are increasing, so start saving money as early as possible. This is one of the best money decisions that you can make for your children. You may think that you still have a lot of time to plan for their tertiary education, but it’s never too early to plan for their future. Consider getting an education savings plan to fund their education, especially if they plan to pursue two university degrees.
Do you have other tips on education savings plan? You can share your ideas in the comments section below.