Saving for Children’s Education: Here’s How to Plan it Right

Saving for your child’s education is not an overnight thing. It can be a little overwhelming and scary, especially if you have no idea how the whole process works. We hope this blog can answer some of your questions on saving for your child’s education.

1. Determine the Time Horizon

It’s important to determine the time horizon. The longer the time frame, the higher your investment needs to be. If your child is still in high school or college and planning to attend graduate school or medical school, for example, you will need to save for at least eight years.

If your child is going to opt for advanced educational degrees, then you should consider saving for up to 10 years.

If they want to start their own business or go into entrepreneurship later in life, they’ll need to start saving earlier than that because there’s no telling when they’ll need it.

Depending on the time period, one can save money in a savings account to save money and generate interest on it securely over a long period of time. There are different types of savings accounts available that offer different benefits depending on what you want to achieve.

2. Research the Cost of Education

The cost of education is a significant expense, and it can be challenging to plan for. When you are trying to save for your child’s education, there are several things that need to be considered. The first thing to do is research the cost of education. You should know what your child’s state or college requires in order to receive a high school diploma and a degree.

You also want to take into account any scholarships or grants that may be available for college or university expenses. This will help you cover the costs of an expensive school and make sure that you have money left over for other needs.

3. Plan your Investments Smartly

Investments are important. You can make money if you are smart about it. But what exactly is an investment? An investment is something that you buy with the hope of making some money in return. It may be a house, a piece of land or even a share in a company. In addition to this, people who want to invest their money while keeping it safe prefer to open a savings bank account that allows them to earn an interest rate on their money.

If you are looking to grow your money while you save it for your child’s education, then opening a Save digital savings account might be the best option for you. It offers you an impressive interest rate of up to 7% per annum, and since it’s a digital savings account, you can access all the banking features at your fingertips.

4. Make a habit of reviewing your portfolio and making changes if needed

The next step is to make sure that you’re on track to save for your children’s education. You can do this by looking at how much you’ve saved so far, how much you still need, and whether or not you have enough interest income to cover the difference. If not, then it’s time to look at ways of earning more money to help with your goal. To earn more interest, you can diversify your portfolio by investing in stocks, mutual funds, and bonds depending on your risk tolerance.

5.Get Yourself Insured

If you have an untimely death or meet with an accident that impedes your physical ability to earn, you may find yourself short of funds when it comes time to send your child to school. One of the biggest potential setbacks to a child’s education is the demise of the breadwinner in the family and the lack of insurance.

So make sure you have enough life and health insurance to at least cover the tuition fees of the school and college your child will possibly attend. Likewise, optimally insure for health. Not having an adequate medi-claim cover or one at all can potentially derail your financial goals if medical emergencies arise.

Getting started early and planning smartly for saving your money is the key to your child’s future and we hope that these tips will help you in doing your job better.