A Parent’s Guide to Saving Up for Children’s Education
In the words of Nelson Mandela, education is indeed the most powerful weapon that one can use to change the world. Needless to say, education is the primary key to success that relatively plays a vital role in shaping one’s future.
The knowledge that one can attain from education serves as the backbone of many practical and theoretical decision-making processes that one may encounter, and at the same time, it opens doors to many opportunities as one goes through life.
Since all parents want nothing but the best for their child/children, providing them a quality education is the key to making them enjoy all the fine things in life and mold them to be successful as they grow. However, the cost of education here in the Philippines is changing over time. Then again, nothing can ever replace the cost of missing out on education and its implications on one’s life.
Planning and saving up for your child’s future education even in their young years will help take the pressure off you in the years ahead, which is why it’s always helpful to plan and start saving up as early because, in the end, time will always be your greatest asset.
Here are six tips to avoid having to dig a hole into your pockets to make financial provision for these expenses:
- Set up a savings account dedicated to children’s education.
Setting up a savings account in your child’s early years gives you more time to build your savings. It’s important that you dedicate a separate account for all your other savings and your children’s education.
This gives you control over how much you can actually spend on personal matters and how much is allotted for your child’s school fees. No excuses for promissory notes anymore!
- Settle for public primary and secondary schooling.
Tertiary education is no less expensive compared to primary and secondary education. There’s no exemption in digging a deep hole in your pockets as you provide the quality education your child deserves.
Education doesn’t have to be expensive. Enrolling your child in a public school doesn’t make education quality any less. In the end, what matters most is choosing a school that is the best fit for you and your child geographically, financially, and academically.
- Save as much as you can afford.
Spend less, save more – it’s easier said than done. If you’re spending more, you are probably buying more than what you need. Always lay things out in a plan so that you have an overview of the amount you can spend and the amount you need to save.
All efforts you make today will reduce the need for you to borrow in the future. What you can do is to set a certain goal to reach and try saving in peso increments weekly. Double the amount of what you save as you go through the week, then triple it the following week until you reach that goal or exceed it.
- Encourage family members to contribute.
Teamwork makes the dream work. It will be easier if the whole family save up. Let also your children know your savings plan. Involve them in money decision-making in the household to make them realize how every peso counts so that they can value money more.
It’s important that they understand the benefit of long-term saving because it’s for their future anyway.
- Make wise buying decisions.
When it comes to buying, there are times that it’s hard to choose between a want and need. Reviewing your budget frequently can help you in your buying decisions so you would know which to prioritize first and which to push back.
There can be a huge impact in getting the cheaper but a more useful car for the family than a luxury one for your benefit alone. Don’t be discouraged and stop saving completely if this happens, as even a small amount you save can eventually build up in the future—making needed spending more bearable than having to loan for it instead.
- Pawn some unused, valuable items.
Financial rules will definitely do you well, but they’re completely useless without resourcefulness. If you have some good investments that are still in good condition but are not that worth using anymore, try to pawn them.
Make good money out of these pre-loved items instead of throwing them away minus the hassle through online pawning. Not only can you make room for more items at home, but also benefit from disposing of unused items.
The earlier you start saving for your children’s education, the better. Education is truly the best gift you could give your children. Not only are you giving them the opportunity to learn and gain the knowledge they need in life, but also providing them the education they need to become who and what they want to be hereafter.