As parents, we all want what’s best for our kids especially when it comes to their education. But as much as we want to send them to the best schools and universities, one thing that may hinder us from doing so is insufficient funds. Just imagine the huge costs of a child’s private education including tuition, school supplies and uniforms.
Be wary of inflation
With inflation and other factors, the fees at private schools and universities will likely increase. That’s why it’s important to save for your child’s education as early as possible.
Some parents set up an education savings plan early on, which is a great idea if they plan to send their children to private schools. Even if they hope to send their kids to private schools, many parents don’t save for their children’s education because they have to deal with more immediate needs first.
Different circumstances may lead us to prepare for our family’s day-to-day needs first but it’s a good idea to save for your child’s education if you can.
Here are six reasons to save for your children’s education:
Reason 1: Ever-rising tuition
If you think private school tuition is expensive now, just imagine how much it will be five years from now, or when your child starts studying at university. Together with inflation and other factors, the fees at many private schools and universities will likely increase over time. That’s why it’s important to save for your child’s education as early as possible.
Reason 2: Avoid dropping out due to lack of funds
If you send your kids to a private school and then find yourself struggling financially, you may ultimately have to pull them out of the school which is a major blow to them.
Reason 3: Peace of mind
Having insurance gives you some peace of mind, knowing that if something unfortunate happens, you’ll have something to rely on to ease the burden. The same thing goes for having enough savings for your child’s education.
Reason 4: Set a good example
As they always say, practice what you preach. Having an education savings plan says a lot about how you value education, and when your kids see how you work hard to save for their future, they may study harder, or learn to save money at an early age.
Reason 5: Money works for you
Start saving and let it work for you by having a diversified portfolio. Over time, you don’t have to work too hard to send your kids to school since you’ll get huge returns from your investments.
Reason 6: More options
Having enough savings allows you to have a breather if you lose your job or you want to move to another place. You can afford more time to look for a better job, or afford to be in a much nicer house and neighbourhood. Just imagine the state you’ll be in if you suddenly lose your main source of income and you don’t have savings.
Do you have other ideas on saving for your children’s education? Share your insights in the comments section.