We’re often told that we should start saving for our children’s education but how many of us really do? There are always other expenses that seem more important, but really, if you’re honest with yourself, they’re just more imminent. If you’re serious about giving your children the best education you can afford, then you should really start saving the minute they’re born.
Realistically, most people don’t start saving until their children are in school already or perhaps a year or two before they start attending private or higher education. This can end up creating a heavy financial burden, especially for families with more than one child.
So what do you need to know about saving for your children’s education?
It’s Never Too Early To Start
The golden rule of saving for your child’s education is that it is never too early to start. Think back to when your child was born. How many people sent you soft toys, baby grows, baby shoes and other cute baby gifts. Yes they were probably all gorgeous but how many of them did you really need or even end up using? Many people receive gifts that never even get worn or taken out of the packaging.
If you’re going to become a parent soon, or are even thinking about having kids, consider setting up a savings account so that when the time comes, people can deposit money into to kick start your child’s education fund. $20 from 20 people is $400 and a nice sum to start your savings!
Work Out How Much You Will Need
As with any savings plan, you need to have a goal in mind. Do you need $20,000? $50,000? $100,000? Or more?! You may be guessing at what your child’s education may cost you 5, 10 or even 20 years down the line, but how do you work out what it will likely cost?
If you want to know just how much you’ll need, speak to our financial advisor in Joondalup today. We can help you work out how much you’ll need and how much you need to save between now and when you’ll start paying school or higher education fees.
Explore Your Options
There are a number of different options when it comes to saving for your children’s education. These include education savings plans, managed investment funds, property investment, savings accounts and more. If you know what school you want to send your child to, find out if they offer any pre-payment options. Some private schools allow parents to pre pay up to 10 years in advance so this may help you spread the cost over a longer period and lock in some discounts.
Each family’s circumstances will be different though, so make sure you speak to trusted financial advisors in Perth about your financial goals and how you can best achieve them.
Save Money At Home
It’s important for children to know that their education costs money and where that money comes from. Teach them the value of what they receive from an early age.
If you’re planning on spending a large amount on education for your child, cut costs in other ways. Make packed lunches instead of using the school canteen every day. Buy good quality second -hand uniforms or generic uniforms from stores like Best & Less and Big W. Use back to school sales to stock up on stationery and other school equipment such as bags and sports equipment. If they use public transport to get to and from school, get a concession card to get cheaper fares.
If you want to speak to trusted financial planners in Joondalup about how you can start saving for your children’s education, call LUDA Financial Solutions today on 08 9300 2553. We can help you successfully plan for your children’s future by helping you with your cash flow management and financial planning advice so get in touch today.