Even though being a parent is one of the most beautiful and rewarding things in the world, it undoubtedly comes with a lot of challenges and difficult situations you must overcome sooner or later.
One of them is sure to invest in your child’s education, so stay with us and keep on reading if you want to know how to get it done like a true pro.
The money you set aside in these accounts to cover the cost of the education of your child or children is not tax-deductible however, it is a great way to begin saving money and investing in the future of your child.
If you begin investing the maximum amount $2,000 per year upon birth your child should have a nice nest egg to help cover educational expenses.
If your child qualifies for scholarships and other sources of financial aid you can turn the funds over as a graduation gift, help with other college needs (new bedding, decor, supplies, etc) or save it for the next college student in your family that comes along.
Either way you've saved yourself a good part of the worry that goes along with providing for your family by having this fund set up for your children.
3 Ways to Invest in Your Child's Education
What can I do for my kid below the age of 5?
When your child is below the age of 5, it means that he or she is still too little for you to think thoroughly about some detailed education plans. At this stage, you as a parent are responsible for providing food, clothing, health, and daycare expenses, which should be your top priority when your kid is still small.
Of course, no one says that you can’t invest in something different but also as important, such as savings plans, unit-linked insurance plans, and growth plans with a significant capital appreciation over a period of time. Besides that, you can also opt for an investment plan targeted at higher education expenses, with the help of financial advisors, of course.
Professional help of this kind is highly recommended for planning portfolio so that you can be 100% sure that your child will have a bright future thanks to your smart moves and decisions you were making from their early age.
What can I do for my kid between the ages of 5 and 15?
On the other hand, when your kid is between the ages of 5 and 15, there will be way more things you as a parent need to take into consideration – especially when it comes to their education. First of all, you’ll have to take care of their admission into school, tutoring, day-to-day care, healthcare, and other related expenses that can sometimes go through the roof.
Well, that’s exactly why planning in advance and investing in your child’s education is of the utmost importance, as you’ll manage to sort everything out beforehand, without actually facing the actual financial obstacle. As your little one is growing up, their talents will come through, and you should know that career planning requires timely economic support.
Of course, when compared with these, the previously mentioned short-term expenses can be easily met – especially when you’ve planned everything out carefully. Apart from that, it’s highly likely that your child will develop a special talent during these years, such as singing, acting, or playing music.
This means that special coaching and additional tutoring will be necessary, so be sure to opt for a partial withdrawal facility that can be quite helpful when you need to meet the costs of such coaching.
What can I do for my kid above the age of 15?
Once your kid turns 15, this means that he or she has reached a certain age when they’re able of making a decision when it comes to their career path, so all you have to do is to help them follow their dreams. Besides that, a lot of older teens still eager to improve and be even better, which is why they are opting for an IELTS in Sydney, London, and New York.
It’s particularly useful when it comes to upgrading their Academic English skills, so be sure to pick it for your child if he or she struggles with that aspect. Needless to say, college fees and admissions are already adding up rapidly, but you shouldn’t worry at all because your investment fund should have more than enough money to pay such expenses.
Apart from that, you should also help your child further improve his or her other skills and get ready for the university. We should also mention that the maturity date should be carefully timed and that it’s as crucial as choosing the investment amount.
If you don’t do it right, it’s highly likely that you’ll fall short of funds and even be forced to opt for some kind of an educational loan or similar borrowing, which is what you should avoid at all costs. After all, the point of investment plans is to make smart choices and save money in advance, so that you don’t have to think about it when your child grows up, right?
As you can see, there are a lot of smart ways to properly invest in your child’s education and make sure that he or she won’t face any obstacles later in life – at least when it comes to the financial aspect. All you have to do is to stick to our tips and you certainly won’t make a mistake, that’s a promise!