One of the keys for saving for any life event is to plan and start saving as early as possible. When planning for a family there are so many things to consider. One of the major costs is saving for your child’s education. Here are five tips to help get you off the ground.
1. Start Early:
Each year, tuition fees increase and the earlier you get a start on saving for higher education, the more time you have to make your money grow. Imagine contributing $1000 every year to your child’s university/college education from the time of birth. By the age of 18 you would have an initial saving of $18,000 without factoring in the additional savings that interest rate contributes.
2. Research cheaper alternatives:
Distance education and online degrees are more than just a fad. For many students it is more cost effective to study online. Also, planning to study part-time while still working can help alleviate some of the anxiety around having adequate financing for school because you will still be generating an income while studying.
3. Think about financing through scholarships and bursaries.
Many financial institutions offer additional financing through scholarships and bursaries. In many cases, scholarships help to cover the cost of tuition, books and other living expenses for the first few years or even the duration of studies. Seeking additional financing is a good way to help cost the cost of some of the annual expenses that come along with being in university or college
4. Think Ahead:
make a financial plan for the institution that you may want your child to attend. If studying abroad is the goal, research the country or city where you would like your child to attend. This way you can plan for cost such as of campus housing and other living expenses.
6. Making Investments:
Consider investing savings so that your money can grow while you save