Education Planning
- Post by Super User
- In Great Eastern Life Assurance
- On 18 September 2012
- Hits: 2919
PARENTS, KIDS AND MONEY
SOWING THE SEEDS ………
There is a time to sow.
There is a time to reap.
Do you have the fruits that await reaping? Give you child the greatest of gift – An Education Fund
Becoming a parent is one of the most rewarding things in life, but it does come with some cost. As one prepares to introduce a new family member, additional stress will affect the already strained financial resources. Here are few considerations that can help soothe the journey.
Know Thyself – The Budget
A new child means another mouth to feed, childcare, diapers, doctor visits, clothing, and more. It can seem overwhelming at first to a new parent, especially from a financial viewpoint. However, careful budgeting can make this an easy transition.
Tertiary Education Planning
As any experienced parents will tell you, there will be very little time for such planning and consideration in the months after the child is born!
After your child has reached a few years of age, then comes the planning for big-ticket items such as tertiary education. Saving for any big-ticket items such as tertiary education is not for the faint of heart, but the only way to save is to make a start from somewhere, and to then religiously stick to a saving plan. These days, many parents even plan for their child’s education from the point of birth. The truth is that it is never too early to start!
Advisers do this by evaluating factors such as parents’ income, child’s age, risk tolerance, set up period and the amount within budget.
Scholarship and grants are often overlooked by parents as a source of education funding. Their children may be exceptionally gifted academically or excel in certain sport, thus making them eligible for scholarships and grants. Beware though, of scholarships that have undisclosed strings attached or those that do not cover the total fees.
Teaching about money
We now come to an important issue, which even rich parents forget of deem unnecessary to consider. Parents can plan their heart out and have all the funds in the world, but many forget this wise saying, “If you don’t teach children about money, someone else will, and the results may not be what you desire.” Instead of giving a huge lump sum payment from the education fund, there is some safeguard that the children will not overspend in view of the amount, to ensure your child enjoys a more secured tomorrow.
