PERSONAL & BUSINESS SOLUTIONS
Children’s Education Fund
Children’s Education Fund
The cost of higher education has kept on increasing due to inflation and other economic factors. This leads to financial strain for parents/legal guardians when their children begin higher education. It is important to plan early to provide for their higher education.
A children’s education plan is a savings tool to set aside money when your child reaches the age for entry into college (18 years and above). The funds can be utilised to meet your child’s higher education expenses. The earlier you begin, the more time you give your money to grow and compound to better finance your child’s higher education.
As a guide, add the annual course fees to the expected living expenses and multiply this by the number of years of study. This will give you an indication of how much it would cost you today. Don’t forget to account for inflation. Once you have factored that in, you could end up with a difficult amount to afford! The good news is that our wealth planners are here to work out the best education funding strategy for your children.
The key benefits of planning your children’s education funds are:
- Financial preparedness
- Planning for your children’s education fund helps you financially prepare for the cost of their education. It allows you to accumulate savings over time, ensuring you have the necessary funds to cover tuition fees, books, supplies, accommodation, and other educational expenses when the time comes.
- Flexibility in school choices
- Saving for your child’s education gives you greater flexibility in choosing the educational institutions that best meet their needs. Whether it’s private schools, international programs, specialised academies, or prestigious universities, having the financial means to afford these options opens up more opportunities for your child.
- Minimised student loan burden
- You can help reduce or eliminate the need for student loans. Student loans often come with interest and repayment obligations that can burden graduates for many years after completing their education. By providing funds upfront, you can help your child start their career with less financial pressure.
- Educational legacy
- Planning for your child’s education fund demonstrates your commitment to their future and the value you place on education. It sets an example, encouraging them to take their education seriously and inspiring them to become lifelong learners.
As a responsible, forward-thinking parent, you should start an education fund for your children now.