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Our children are our flesh and blood, and we provide for their every need not merely out of duty, but out of love. These needs include the physical, the emotional and of course, the financial. As a father of three children myself, saving for our children’s education can be a daunting task for any family as the cost of their university education can be hefty. This is especially so when we have more than 1 child. However, this large expense can be much more manageable when we plan years in advance.
The following would be the key considerations when we plan for their education funding:
- When will be the time when all my children enter college?
- How much would it cost when my children enter college?
- How much to set aside to plan for all my children?
- What would be the most suitable ways to plan for their education?
This is one of the biggest investments we can make towards their future. Depending on their age and place of study, the level of contribution we will be expected to make can differ significantly, but the most important thing is to have a clear plan in place that covers the inevitable expenses that will arise in the long-term.
We can consider taking these 3-step approach to get on top of the situation.
Step 1. Estimate the expense.
Take a long-term view and estimate the education expenses for all our children according to their interests. Use free tools from the Internet to get an idea about the investment amount we will need, considering the expense and inflation rate.
Step 2. Invest in a Children Education Plan.
We need to appreciate that even saving small amounts now will add up and ease the burden later on. A Children Education Plan is nothing but a long-term savings plan that allows us to make a commitment to saving regularly. You can choose the amount for saving and the interval at which you would like to save, this could be monthly, quarterly or even annually. There are many options available from various savings and investment vehicles available for education fees planning.
Step 3. Review your Plan.
Assess your progress on an annual basis and adjust your calculations where necessary in order to meet your family’s needs. For example, if we have another child or we are moving to a new country, our calculations will change.
While we plan for these big expenses, we should also use this time as an opportunity to teach our children the value and importance of your savings towards their education. Encourage our children to be part of the process and challenge them to study hard for a scholarship. Ask them to help make small savings towards university by getting a part-time job or setting aside a portion of their allowance.
Let us start saving today to secure our children’s future.