The whole point in funding your child’s education is to get him admitted into a good college and opt for a course that protects his career interests. In order to help your kids in shaping their future, you’ll need to shed a good portion from your savings. The private tuition fees that you’ve been panting to cover will be replaced by the five-figured university fees.
Seeking admission into any public university in your locality is certainly an option, but for this, you ought to consider applying for a tuition loan. Again, there are a few good options for you to check out. Your teenager can even fund his own studies by opting for a bank loan.
It very tough to make both ends meet, so many of the parents won’t allow their children to start a career while they’re in debt. It’s in your best interest to create a fund for fulfilling the university fees of your child in advance.
Consider the following tips if you don’t want to hide your head like an Ostrich:
Plan for funds in advance
Bearing the cost of your child’s education in an English-speaking country is often compared to that of buying a home for your loved ones. You’ll need to do your own research and plan things in advance just like you do it while buying a home. You may begin by setting aside a portion of your savings every month for creating this fund. A large section of parents is now beginning to take firm decisions about funding their kid’s education even before the latter get admitted to a primary school. You’ll certainly achieve more funds for meeting your teen’s university course fees if you start early on.
Incorporate it into the budget
Your child might go to a university after 15-20 years, but you may begin saving for it from now on. Setting a small amount aside every month can help lessen your stress in the long run. It’s much better than spending a large sum at once. There are a few key areas wherein you ought to make sacrifices – you may not live up to your promise of buying the latest iPhone for your child or take the loved ones on a holiday. However, it’s always good for you to make these sacrifices right away instead of finding a way out when you’re in a loss.
Pull out of debts reflecting higher interests ASAP
You must try your best to pay off personal loans, credit card debts, and other high-interest debts that remain in your credit report. You must also teach your child to be financially responsible and pay off your debt in time. If needed, arrange an austerity drive for your family members. Debts of this type may often cause you to lose much money in interest and can even get beyond your control. Losses of this kind can prove to be a big jolt for your child’s academic aspirations.
Invest whatever you have in a savings account
If you start saving money much earlier on in life, you’ll then be able to invest it and allow it to grow. You must work out a plan that enables you to invest in the university fund gradually over a few years time. Whatever you invest needs to be monitored and be transferred to another vehicle reflecting a lower risk. Keep your money invested till as long as you don’t need it. For example, you may choose to invest a portion of your savings in stocks and then cash it out after a few years. Investing your return in a term deposit or other low-risk option for a couple of years before you need to get your teen admitted to a university is a great ploy. Have you begun saving for this as yet? It’s high time that you take the first foot forward!