Planning a child’s education requires the parents to be very emotionally and financially involved. It’s one of the most pivotal parts of your child’s journey into adulthood. The best a parent can give their child is a good education that helps them.
So let’s help you plan it out:
Don’t waste any time.
Don’t wait for your child to turn 18 before you start planning. Start planning the day they’re born. This way, you’ll nearly have two decades of compounded growth to end up with the right-sized fund by the time they turn 18.
It also helps to set a target date for the child’s education milestone. If you’re not married, you can also estimate the time by which you’d want to start a family.
There’s a lot more to a child’s education plan than figuring out the costs. Post-secondary education, in particular, requires you to do a lot of research.
Think of what your child is passionate about. What subject are they generally good at? What are their career aspirations? Which area of study has a higher market value in terms of employment? Why do they need to acquire post-secondary education in the first place?
Sit down with them and talk about it. Do they want to go to college for personal fulfillment or career development? It’s very common for children not to know what they want to study. Narrow down their options to help them through.
Choose the right school.
Your child’s final choice of school depends on a myriad of factors, including the desired field of study, tuition costs, availability of financial assistance, related job opportunities on campus, cooperative education, and student life.
The school’s reputation also matters. How does the employment market view the degree? What’s the school’s track record in terms of the student landing good-paying jobs?
There’s more to an education plan than just tuition fees. Is the accommodation, food, transportation, recreation, and personal care within your budget? Can you afford to pay for the child’s laundry, groceries, computer costs, childcare, and medical expenses?
The most common funding sources for college education are scholarships, bursaries, student loans, and other savings. In some cases, the students also manage to pay their dues by working part-time.
SJG Financial Services have helped numerous parents plan out their child’s education fee. Get in touch, and we will provide an actionable plan without putting your financial position at risk. We also offer wealth management advice and retirement planning assistance in Santiago.