PLANNING FOR YOUR CHILD’S EDUCATION.
In the beginning of creation, it was God’s desire and commandment for men and women to go into the world and multiply and fill the earth. Men have not looked back since then. It is always a thing of joy when families bring into the world a new born baby. Apart from fulfilling God’s ‘commandment’, it is also a way for the elongation of the lineage of an individual. Through the bringing forth of a child into the word, a lineage is established from generation to generation.
But developing a child God has blessed us with comes with its own challenges. One of the major challenges is giving the child the best education available. And this, as it is always said, is the best investment a parent can give to his child. Educating the child secures his present and future.
But in the world of today, where educating a child can be very costly, payment of school fees can be very scary. It requires adequate planning and preparation by the parent. To pay for your child’s education without stress, the following financial planning tips can be of help.
- Inculcate the discipline of savings/chart out a monthly budget. Start by identifying the annual cost of the child’s education. That is, identify the annual school fees. Then plan your monthly budget and come up with a monthly amount that you need to save every month. Once you have set a target, work towards it. Setting aside some specific amount everyday will help you meet other needs also.
- The earlier you start the better. It is better you start setting aside some money monthly on time to enable you benefit from the power of compounding. If you deposit your savings in a financial institution, the possibility is that your interest will be compounding.
- Spend on what is required. To be able to set aside enough to meet your target, you will need to spend money only on necessities. Spend only on your needs rather than on your wants. Avoid all the unnecessary expenditures.
- Enjoy Quantity Discount. Most schools normally give favourable school fee discount to parents that have more than one child in the school. Thus, it will be of benefit to a parent to put all their children in one school rather than spreading them in many schools.
- Upfront Payment. Most schools also give discount to parents that pay the complete fees of their wards upfront. Some times as much as 10% discount can be enjoyed. By planning well and early, parents can utilise this window of opportunity.
- Payment in Instalments. Parents can take their wards to schools that allow for payment of school fees in instalments. The opportunity to allow for convenient payment terms enables parents to spread the payment of school fees over a period of time. This frees resources to take care of other pressing responsibilities. It also eliminates the frustration of having your wards sent back home for school fee drive. Peace of mind all the way. What is more?
- Avoid Imitation. For some parents, the schools their children attend has become a class issue. Instead of taking their children to good schools with affordable school fees, they want to compete with their friends. By doing so they put themselves in unnecessary stress.
- Education Loan. What else do you do if you still don’t have enough money after going through 1 – 7 above, you can opt for education loan. But this should come as a last resort. If you have a gap between the amount saved for the education and the actual cost of education, the difference can be compensated with an education loan. But this comes at an additional cost to the parent as interest will be paid on the loan. And that is why it should come as the last resort.
The above plans may not be exhaustive. Individuals can think of other options that are available to them. Above all, we must plan for a good education for our children. This is a MUST as it is a good insurance for both their present and future.
Planning For Your Child’s Education