The cost of education everywhere is rising steadily, and it is becoming increasingly important for parents to start saving early for their child’s future education. Fret not, with this rising competition, businesses have been clever to let you pick an alternative. However it might not be the top ranking college as those Ivy League or the one that you wanted to get in. In this guide, we will discuss some of the best ways to save money for your child’s education.
Start saving early.
The earlier you start saving, the more time your money has to grow. Even if you can only save a small amount each month, it will add up over time. A good rule of thumb is to start saving for your child’s education as soon as they are born. Research for a higher interest bank to start saving that money or financial institution that sets you up higher savings. For example in Singapore, instead of a time deposit at a bank. Singlife, Singtel Dash EasyEarn (referral code “DASH-Y7B23″and you can get $3 cashback for your first remittance) and Poems excess fund management or they call it SMART Park have better savings interest rate plus liquidity if you are in need to use the money.
Set a realistic goal.
How much do you want to save for your child’s education? It is important to set a realistic goal that you can actually achieve. If you set your sights too high, you may get discouraged and give up. Always take the SMART goal. Specific, Measurable, Attainable, Realistic and Time Specific
Choose the right savings plan.
There are a number of different savings plans available, so it is important to choose one that is right for you. Some popular options include:
Child endowment plans:
These plans offer a guaranteed return on your investment, and they can be used to pay for your child’s education, as well as other expenses such as their wedding or home down payment. Always compare between insurers and make sure you do not need the money anytime soon as endowment plans are usually 3,5,10,20,21,25 years.Education savings accounts (ESAs):
ESAs are government-backed savings accounts that offer tax benefits. The money in an ESA can be used to pay for your child’s approved educational expenses, such as tuition, books, and living expenses. Same thing for endowment but sometimes check this out to have a better interest rates as well.Unit trusts:
Unit trusts are a type of investment that allows you to invest in a basket of different assets, such as stocks, bonds, and real estate. This can help to reduce your risk and give your money the potential to grow faster than it would in a savings account. In this case, be prepared to lose some money if it does as past performance are not indicative of future result.
Make regular contributions.
The best way to save money is to make regular contributions to your savings plan. Even if you can only save a small amount each month, it will add up over time. Try to set up an automatic payment so that you don’t have to think about it. Best way to save money every time, is to pay yourself first. For example, $50 each month will lead to $600 in a year.
Get creative with your savings.
There are a number of different ways to save money for your child’s education. For example, you could start a side hustle to earn extra money, or you could sell unwanted items online. Aside from the normal monthly contribution, your bonus or other types of windfall, you could add it to your child’s future.
Don’t forget about scholarships and grants.
There are a number of scholarships and grants available to help students pay for their education. Always do some research to see if your child is eligible for any scholarships or grants. Check if they are eligible for some modules exemptions as well, it will help. There’s something extra here, if you study online at a cheaper rate and transfer all the credits to a reputable school and only start studying then, the total cost of the education will be reduced as well. However you need to check if the physical school will allow the credits to be transferred from the online school that you took.
Be prepared to make sacrifices.
Saving money for your child’s education may mean making some sacrifices in your own lifestyle. For example, you may need to cut back on your spending or eat out less often. However, it is important to remember that the sacrifices you make now will be worth it in the long run.
Stay motivated and discipline.
Saving money for your child’s education can be a long and challenging journey. However, it is important to stay motivated and focused on your goal. There are a number of things you can do to stay motivated, such as setting small goals, tracking your progress, and celebrating your milestones. Nothing beats discipline, if you are discipline, it will bear fruit.
Conclusion
Saving money for your child’s education is an important investment in their future. By following the tips in this guide, you can start saving early and reach your goal of a secure financial future for your child.
Additional tips:
- Consider using a financial advisor to help you plan and save for your child’s education.
- Talk to your employer about whether they offer any education savings benefits.
- Keep an eye on the cost of education, so that you can adjust your savings plan accordingly.
- Don’t be afraid to ask for help from family and friends.
With careful planning and saving, you can give your child the best possible start in life. Follow us for more tips
