Education is undoubtedly the key to success in every endeavor in today’s world. Many a parent is pouring their monies into making sure their children join the elites. But the problem that is arising these days is the cost of funding their children’s education. The problems get worse when those parents have not made any provision for such future cost. Below are the ways that parents must use to stop such situation in their lives.
Determine how much it will cost
Taking your child’s education as an enterprise will help you to plan ahead. Children are in continual growth and as a parent you need to meet every cost that goes with their growth. This means you must plan how much it will cost you to see your ward through college. You can do this by researching on the fees those schools charge today. You knowing how much they charge today and projecting into future will help you determine the cost.
Identify the strategy that suit you best
After you been able to determined how much it will cost you , the next things is to look for ways you will adopt to help you achieve that objective. Mostly, in investment like this, there are two major strategies that you can adopt. These are; you can make full down payment (lump sum payment) into the set account or use monthly or daily investing. These strategies are very optional base on your financial status.
The various means to apply your strategy
Money market and Certificate of Deposit: this means require that you buy a certificate/coupon for a period of time. They come with penalties if you want to withdraw (redeem) it before the stipulated time. The money market has different redemption dates – from 3months to 6months and a year and more. The certificate of deposit has a specific period upon purchase.
Savings Account: you can also consider saving in your bank. This is the easiest of all the ways to keep money for the future. This account allows you to earn interest on your money but they are usually very small.
Stocks/Shares: Buying stocks/Shares from any stock market will help you save for your child’s education. They are long-term in nature and they require more years to realize its returns in full. But in the interim, you will see the movement of the price of the stock. There are several stocks to choose from on the stock exchanges.
Mutual funds: the easiest means to invest for your child’s education is to choose mutual funds. Mutual funds give you great dual benefit, thus, easy withdrawal and professional management. The mutual funds allow for all the strategies I stated above. Mostly, they do not require huge amount of money to start investing in them.
Life Insurance: This investing product is not of exception to those mentioned. In this type of investment you put away specific amount of money into it for someday. Though, these monies can be received when going on pension. Some of them allow you to borrow against your investment and these borrowed monies can sort out those educational cost.
Should your child be left out of the equation?
I personally think children are our greatest asset whom we will entrust our estates to and they need to know enough to apply in their lives. Statistics shows that children who partake in their educational funding take their studies serious. You must get your children involve in their educational funding. This can be done through little savings they will be making out of their allowances, odd jobs or gifts they receive. Let them use those monies to buy some of their educational needs.