Education Fund -The best education for your child is the one that should be prepared by the parents as early as possible. Because the child is a priceless asset. education savings plan therefore to investing for children’s education is needed to get a good education in the future.
Not rarely the problem child’s education is the thing that makes the financial condition of the chaotic family. Therefore already duly if parents plan and make financial management well for children’s education.
When children enter school age who thought in the minds of most parents is a matter of education budget. Usually, parents will play a brain in order to achieve the goal of education for his son without disturbing the family’s needs. Here are some things that you should notice early on.
1. Prepare the budget now.
Education Fund you should do as early as possible to reduce the burden of the responsibility that you have to in the future. If you are just saving when the child was five years old, then you should pursue nominal big enough for his education. Your load will be handy if you’ve prepared the budget of education since your child is one year old. Besides, it is generally a young couple who have just had children. have a longer period of time in preparing funding children’s education than couples who was nearing retirement.
2. Be realistic in planning the budget
Calculate the amount of income you and your spouse. Next, create a realistic budget for your child’s education. Maybe you just want a child can “education abroad. Not wrong if you have the desire but also the budget plan to achieve it. Of course, you should allocate larger funds to it. We recommend that you design a child’s education in accordance with your abilities.
3. specify the priority
Sometimes the funds should be allocated to fund the education of clashed with many necessities of life that must be met. Because that’s what a lot of people who have difficulty in putting aside those funds. If this also happened to you then it’s time you and your partner set the priorities of life. Less load post expenditures less important such as to eat in the restaurant and so on.
4. Adjust the amount of the budget of each child on a different post
This is for those of you who have more than one child. Should the education budget separate for each child. You can save money in the bank using insurance services, or make an investment in the form of the other.
5. Select the storage allocation of funds that funds educational ideal
You can choose how to fund your child’s education storage either savings or insurance. What is it?
• the savings incurred by the bank
• Funds education savings in a form suitable for you who have not set aside funds remain for each month.
• These funds deposited every month or taken from your account.
• the interest rate is not too big so you should not expect the amount of funds at the end of the period will be much greater than the total funds deposited each month.
• Insurance issued by an insurance company
• the value of the coverage obtained at the end of the period might be higher than the total accumulated funds your deposits.
• the number of deposits or premiums according to an agreement early on your insurance policy. This number can not be changed as in savings.
• This type of Storage is also in accordance with the parent who has an altered spending change each month.
6. Allocate the funds.
Set aside a portion of your income and your spouse each month. Thus the target of saving or paying for insurance can be achieved without sacrificing a lot of other needs. The ideal amount set aside about 20% of your income and your spouse monthly. Details of 5% the funds for the benefit of the cost if the child is sick and so on, 10% for long-term savings, and the remaining 5% for investment.
7. look for other forms of investment
Perhaps you need an investment with a higher yield for the Fund to meet the needs of your child. It is okay you do but you should know in advance that you’ll risk responsibility.
Prepare Education Fund as early as possible will greatly lighten your load at a later date. because we never know what will happen in the future. Hopefully, this article was useful to you and thank you.