The Best Guide to Saving for Your Child’s Education in 2017
Today many families barely make enough money to lead a simple life. That’s because the concept of saving seems far and challenging. However, saving for education is easier than you think. The earlier you start, the more money you will make. In the market, many options allow you to save for your children’s education, without sacrificing your life’s quality. For sure, you want to know how to give your kids the wonderful opportunity to study. Read on.
Finding tutors is a good way to contribute to the development of your child’s education, skills and abilities. It can help you save in education because it allows you to boost the chances of getting a scholarship in the future. You can help your child improve in areas that are not so easy, but if you notice that he stands out in something, support him to develop this potential to the fullest. Helping him to be excellent in a particular area, or a great athlete can instantly multiply his chances of getting a scholarship.
Bank options and your child’s education
Today, banks offer many options to save. Savings accounts or savings funds, fixed-term accounts and trusts are some of them. Some banking institutions have specific savings plans for education. Think about this: if you save £2 a day with a 1% interest you will have £12,400 in 17 years. A minimum amount in a savings account will reduce your chances of applying for a study loan in the future. Please be aware of how stable the currency and inflation is in your country. Make sure that the interest rate favoured by the bank is high enough to keep the value of your money.
This is the most economical way for saving. Mutual funds allow you to start with a little down amount. After a few years, you will see the fruits of your investment.
Tip: The best mutual funds have a wide distribution of assets, which allows a right balance between profitability and risk. We recommend that you seek advice before starting to invest.
Child’s education insurance
These instruments are growing in popularity worldwide. They usually include life insurance and total or permanent disability. In such cases, they guarantee compensation and the insurer will continue to pay the savings until the beneficiary reaches the legal age. Also, they don’t have a conditioning for the use of the funds. The beneficiary can withdraw them and use them for whatever they wish. They may be a great option, but we recommend that you investigate if they exist in your country, or if there is a multinational insurer that can assist you.
Buying expensive gifts?
Education is the best gift you can give your children. Think that you are only investing in their future. Material things are ephemeral over time. Knowledge cannot be taken away, and it will get them far. So consider the cost-benefit about the gifts you give them. Giving them a smart phone, a car or any expensive toy can be a waste of your money. They may bother you now, but later they will thank you for the rest of your life.
Your children deserve to explore all their abilities, to achieve the one they want for the future. Give them a chance of a good start. College studies will open many doors for them. Did you know that a professional earns an average of $1million more during his or her working life than someone who only made it to high-school? Knowledge is power. You know the options, the sooner the better.