Parents want only the best for their children. This includes having the best education possible. However, it can be really costly. Even if you do not plan to send your kids to a private school, the expenses on a public school easily add up. Books, supplies, uniforms, field trips, and school activities are just some of the school-related costs that you will deal with. Eventually, education costs will get a big chunk of your income.
Paying off your mortgage
With mortgage payments out of the way, you can save a lot on interest and a lot more money for your children’s higher education.
But don’t be discouraged. You can send your kids to school without having to live paycheck to paycheck. Here are five ways to save for higher education:
Know how much money you need.
It’s always necessary to have a goal when planning parenting payment. In this case, work out how much money you need for your kids’ higher education. Consider factors such as whether you want them to go to a public or private school. The cost of studying in a university or college also varies so make sure to take this into account.
Pay off your mortgage.
With mortgage payments out of the way, you can save a lot on interest and a lot more money for your children’s higher education. Just ensure that there’s a redraw facility so you can get cash whenever you need to pay for school fees.
Save early and regularly.
Education is an investment, and as with other investments, time will work on your side. One of the best child’s education savings tips is to start saving as soon as the child is born. If this is not possible, the best time to save for higher education is now. At the beginning, you can set aside even a small amount, as long as you can do it on a regular basis. Over time, you can increase the amount to cover inflation rates.
Make your money work for you.
Building up your savings in a bank account is good, but to it’s never too early to visit a financial planner for advice about your goals, and if certain investment products are right for your situation. In the long run, you can get higher returns that you can spend for your children’s higher education. Consider getting financial advice from a professional to better understand the gains and risks involved.
These are just some of the ways to save for higher education. Bear in mind that there’s no one-size-fits-all solution. It’s all about your kids’ future so it wouldn’t hurt to spend some time in looking at your options and see which will work best for your situation.
Do you know other higher education savings tips? Share your ideas in the comments section below.