Every parent would want their child to get the highest education possible. The higher the education that must be taken by the child, the cost incurred is quite large. The problem is, what if the income of parents is limited? What things parents have to prepare to prepare for children’s education even with a limited salary
Here are three simple ways you can apply to set up a child’s education fund:
1. Set Back Expenditure Post
If you regularly collect receipts or payments, this will make it easier for you to know which expenditure items are consuming funds every month. Unfortunately, although it has been collected it could be missing or damaged. So, should you get a receipt, record every expenditure on the book. Although it looks troublesome but it can be an effective way to evaluate and manage finances well.
If you are fairly digitally literate, you can also use an expense recorder app for easy recording.
What can be evaluated from routine expenditure items?
Monthly expenses. You can rearrange the amount of purchased purchases to be maximally utilized. In addition you also begin to be more disciplined with the shopping list plan while in store.
Monthly charges for electricity and water continue to increase each month. That means you should start making minimal savings by unplugging or turning off unused electronic devices.
Transportation costs can be minimized by trying or finding alternative transportation accommodation that cost considerable.
By efficiently spending you can allocate more funds for the education of the baby.
2. Choose How To Collect Education Funds
The key to preparing planned finances besides managing finances well is to prepare funds from as far as possible. However, there are still many parents who have not realized the importance of preparing children’s education fund early on. So, when the child is going to school or university again, the parents are overwhelmed and even pile up the debt.
In addition, many other errors that occur are using the assumption of tuition fees without calculating the increase in education costs due to the factor of inflation. Simply, you can calculate inflation this year by multiplying two. Suppose this year’s inflation is 6%, meaning next year inflation is estimated at 12%.
Well, after calculating the educational cost assumptions that need to be collected, you just find out in what way to raise the education fund. There are several ways you can apply such as saving, investing like a mutual fund, or insurance education.
Each way has its own advantages and disadvantages. Conventional saving is safe but funds will stop when you die. Unlike again if you use educational savings, if you die, life insurance contained in insurance education will cover the installment of unpaid savings. There’s more, an education fund, an education insurance, and an investment whose value will increase if you save your money for longer.
Before choosing the above, it’s better to ask the agency directly than just look at the information from the internet, you can also search for additional information by asking the relatives who have used one way.
3. Adjusting Selected School Institutions
Start looking for school references and compare between one and the other. Not just the facilities and vision of the school or university mission alone, you should also compare how the costs incurred from each school or university. What costs should be incurred each month or year. So you can calculate it in detail.
Think through your financial ability. If you only have one child and no other needs such as debt, you may be able to optimize in choosing a school for the baby at a famous and prestigious school.
But the problem is that expensive, prestigious and reputable schools do not guarantee determining the quality of their schools and universities so much impact on your child. So, if the cost of education will not be sufficient to send a child to school or university, do not be discouraged. You can use other educational funds to increase the ability of the child in other areas, such as giving lessons that children love outside school.
Be a wise parent in preparing the education fund of the baby. Beginning with discipline in managing finances, reducing the sense of ego to buy the desired goods but less need, and start thinking about which school is best for the child. The earlier you prepare the education funding of the baby, the more funds the bus