How to Save Money for Your Child Education?
Want to know how to save money for your child education? Saving money for your child’s education is a wise thing to do with your finances. You want to secure your child’s future. You want to make sure when the time he wants to enter college, he has enough money to pay for tuitions. The question arises when your child wants to get a college course. Education requires too much money especially if you want to send your child in prestigious or private universities.
The amount of money you will spend for your child education is not the same as the amount of money to a child who wants to get a vocational course. If your child wants to become a doctor, a lawyer, an engineer or he wants to become a CPA (Certified Public Accountant), these examples of college courses might be expensive.
The tuition fee is increasing every year. So, do not expect that the tuition fees today that you can afford will be more affordable when your child will enter college. Let this guide help you prepare the finances about the education of your kid/s. Who knows you can send your child to one of the top colleges in USA.
Things Needed
A savings account, an investment account, an education plan.
How to Save Money for Your Child Education?
Open savings account for you and for your kids.
If your kids are still minors, you can open an “in-trust-for” savings account for them. Whenever you receive your monthly income, set aside money and deposit it in your “savings account”.
Open an investment account.
Find stock broker or mutual fund companies. After you have created an investment accounts. Fund those accounts every month, if you are not knowledgeable about stocks investing, try mutual fund equities. These investment funds should treat as “education” funds.
Find any insurance companies offering education plan.
Education plan will be a great move to secure your child’s education. However, be careful in choosing which insurance companies offering education plan.
Tips & Warnings
Before you make a certain decision, it is advisable to consult with a financial expert or talk to a certified financial planner regarding your financial plan.
Discipline yourself in saving money, it is also important to train your kids to save while they are still young. That’s the reason why you need to open a “in-trust-for” savings account for them. Make sure you invest the biggest percentage of your savings in different types of investments if you will need the money after 10 years and above.
Do not touch, withdraw or redeem your investment profits. Take advantage of compound interest. That way, your savings will grow overtime. Investing money can help you prepare the education of your kids. As long as investing was done properly.