|Parents should invest their children's education in preparation for future challenges (Source: Pixar Bay)
In addition to your child's health and safety, what you consider as a priority for your child is education investment. It is the dedication of the parents for the rest of their lives to ensure that their children receive the best possible education.
However, due to increased education costs, parents needed early planning and calculated the risk of school education. In line with this, many institutions, businesses and programs provide guidance to support these parents. Therefore, it has become important to allocate appropriate costs to your child's educational investment to avoid future problems.
Early education plan
As your child grows up, it is important to address the many needs that you need. There are even times when you need several things at once. This also applies to education. Parents do not care about educational plans when their children are young. For example, if you are under 5 years old, you can pay attention only to the cost of day care except food and clothing. You need special coaching and additional guidance while slowly discovering your child's talents.
When your child turns 15 or older, it is time to decide on your career. At this time, the role of the parent should not only provide quality education to the child, but also to guide the child to follow the dream. Another factor to consider is identifying which subjects your child is having difficulty with and parents should know firsthand how they can cope with them. And you should always support your child to improve his or her abilities.
College tuition fees depend on which school your child attends. The 'College Game Plan' suggested using the '2K rule' to save your child's education costs. The 2K rule is to multiply your child's age by $ 2,000 ($ 2.25 million) to know your child's education costs. Keith Burnhart, vice president of Fidelity Investment, said, "If you have a five-year-old, you should save the cost of paying half the tuition for four years at the National University.
Vannhart added that people have different financial goals for their child's educational program, but the 2K rule can be a good starting point. According to a survey by the company, about 69% of parents hope to have specific guidelines on how much they should save for their children's education.
|▲ Suggest to apply the 2K rule to prepare for the education fund for children (Source: Pixar Bay)
Funding for your child's education
Identifying parents' financial goals and outcomes is an objective method for planning a child's education. In planning your child's education, the next thing is to raise funds for education. Parents will be able to make sure that their child's education is not stopped because of lack of funds to make a timely and reasonable plan. The following are some ways to fund your child's education.
1. Predict the estimated total cost
It is important to know how much you will need throughout your child's curriculum. It may be difficult, but it is also a good idea to investigate the increase rate of tuition for each school. Some schools increase tuition by an average of 8 ~ 12% a year.
The best option is to assume a 10% average inflation rate and establish a child education plan.
2. It should be decided according to the fund source.
The next step is to decide how to obtain the funds. Student loans can be an option, but it may be safer to make a timely investment such as mutual fund SIPS. Or some may invest and at the same time receive a student loan.
3. It is a good idea to start investing as early as possible.
It is good to start investing when your child is young. To accumulate the total expected cost of education plan. The longer the investment is delayed, the fewer opportunities to raise funds as planned.
Establish education regulations for children only
It is right to set up a way to invest properly in your child's education. However, it is better to establish appropriate education rules for your children. One thing to consider here is the time needed and the amount needed. Therefore, with inflation in mind, you should set more than the current amount. And to find and compare different ways that are appropriate for your child.
Planning your child's education and the future is quite complex. It is therefore important to seek advice from financial experts. Parents should ensure that they have a good education plan so they can have a wonderful future ahead of their children.
|▲ It is good to get advice from a financial specialist if the education plan is appropriate (Source: Pixar Bay)