Every parent would want to provide the best for their child, including in education. Maximizing the interests and talents of children with the best education course is a parent's dream.
Therefore, the cost of a child's education is one of the things that you should not neglect to prepare. Moreover, the estimated cost of education rose by 20% annually, far greater than changes in inflation and salary increases!
With this increase, the best way to set up a fund a child's education is through investment. Hopefully the following five tips can help you:
1. Prepare early
Investments take time to develop. Cost of education is usually a long-term target that takes more than 5 years to be achieved. Therefore, the sooner you start setting aside money and investing, the better.
2. Plan your child's education level
Plan your child's education, such as the type of school you want (public and private schools or abroad), the type of education according to their interests and talents of your child (school of art, or medicine, etc.). After that, use a child's education cost calculator that you can get on the internet to calculate the estimated cost of education in the future.
3. Calculate the amount of investment you need to do
After getting the target cost of education, you can calculate the amount of investment you need to do to achieve these targets. The investment amount is influenced also by the type of investment you are making, for example, education savings, mutual funds, etc.
4. Consider Need for Life Insurance
You also have to think of the worst possibilities. What would happen if you or your partner as a family breadwinner could no longer support a family, for example due to illness or death? Prepare protection for your child, so when the worst happens, your child can still live decently and get the best education.
5. Do not Doubt inquiry
Knowledge of financial planning you can get from books, the Internet, financial news, or ask family or friends that were / are being invested. If necessary, you can also consult a financial planner to make education funding plan is best for your child.
After having a good plan for the preparation of educational funds, you'll need next is the discipline to execute the plan. Reevaluate your plan within a certain period, for example once a year, to adapt to economic conditions, the condition of your finances, etc. All for the sake of providing the best for your child!