Kids are big investments, but you don’t have to break the bank to give them the best education possible. Discover helpful tips and tricks to save money when it comes to planning your kid’s academic expenses.
Planning your children’s education is a daunting task, but it doesn’t have to be overwhelming – with the right preparations and the right resources, you can affordably give your kids the best educational opportunities available.
It starts with opening a savings Bank account or a checking account. Initially you deposit less funds in account but gradually as your kid grows, the bank balance has to grow to meet his school and college fees demand.
The fundamentals of building and managing strong financial foundation is required in order to meet your child’s education expenses.
From budgeting responsibly to maximizing financial aid, discover helpful tips and tricks for planning expenses for your kid’s education.
Let’s see what are the expenses that a parent has to be prepared beforehand. Giving tuition fees for school does not cost much. The real big expenses come when your kid is going for college education.
If its a normal degree course, its manageable but if your kid goes for professional courses such as medical, engineering, etc, the expenses might even go beyond your expectations. Though not all the colleges and universities are costly, there are universities all around the globe which has considerably low cost of tuition fees and expenses.
But, the main issue here is that, when your kid goes for higher studies, away from home, there are certain other expenses that come along. You may say it as- expenses for hostel, food catering and lodging not to mention the pocket money for daily requirement.
Other than that, a student may require the cost of books and equipment, a two wheeler vehicle and a laptop. Either way, its for sure that without proper planning, you would ultimately dry up your bank account or when no other options seem probable, you might end up taking education loan or personal loan to meet the expenses.
To avoid such situation, the best way is to plan early and execute at the earliest possible. There are a number of choices you can make. Research on it and try to devote time to make it happen.
Utilize Free or Discounted College Courses for Young Learners.
One of the best ways to save money when it comes to educational expenses is to look into free or discounted college courses for young learners.
Many colleges offer online or hybrid courses specifically designed for younger students, which can be great options if your child wants a more engaging learning experience than what traditional classroom settings provide.
In addition, many universities and community colleges offer discounted tuition rates for students aged 18 and under – make sure you check out all of your options to find the best deal!
Research Financial Aid Opportunities and Scholarships.
Another great way to save money on your child’s educational expenses is to apply for scholarships and other forms of financial aid.
Many institutions offer scholarship programs that are specifically designed for students in need, and there are also a variety of other financial assistance options available out there – from government assistance programs to private organizations. Do your research and you may find some great deals!
Invest As Early As Possible In Child’s Name.
When budgeting for your child’s educational expenses, the best way to handle it is by investment at the early age.
There are a number of investment plans that generate attractive returns to meet future expenses such a child’s education.
You may opt specific savings programmes such as mutual fund’s children education investment. You can actually devise it in such a way that you target a certain amount of funds and invest accordingly, either in lump-sum Or in recurring investment mode such as SIPs.
Other option that you jave in your disposal is the life policy plans in child’s name. This specific type of policies handle life coverage as well as fund appreciation for future contingency.
Make sure you explore all the potential opportunities before you commit to any one plan!
Consider Community College Before Going to a University.
Community College is common in western countries such as United States and neighboring countries. You may not find in India.
By beginning at a community college and then transferring to a university, you can save on tuition costs.
Not only do community colleges typically charge lower tuition rates than four-year universities, but if your child meets any academic requirements, they may also qualify for additional financial aid packages to help cover remaining educational expenses.
Plus, pursuing credits at a nearby community college is an excellent way to decide what field of study your child is most interested in before enrolling in a four-year university program.
In India, most of the universities and colleges under Central Government are not costly at all. Pursuing degrees in these colleges are affordable.
The medical, engineering colleges and other reputed private colleges cost huge tuition fees. If your kid is going to pursue studies on these colleges then you need to have a serious back-up funds.
Take Advantage of Public School System Vouchers.
Many states offer programs in which families receive financial vouchers to help cover part of the cost of their children’s educational expenses if they decide to switch public schools.
This can be especially beneficial when you’re moving from one state to another and your child will be in a different school system.
So make sure you familiarize yourself with the voucher program offered by both the state that you are leaving and the state that you are entering so that you can take full advantage of all potential financial assistance options available.
Get Education Loans But Do 50% Investment Of EMI cost.
You can even manage your child’s education loan with guided investment on it. What it means is that, when you avail loans, you are going to pay hefty interest to the bank Or credit union.
This interest pay-out can be managed when you do smart investment. Roughly when you invest 40 to 50 percent of loan EMI on monthly recurring plans such as SIP on equity or hybrid funds, the interest pay-out on loans generally nullify.
But the investment period should always more than the loan tenor. That way, there is a better chance of getting handsome returns.
Kids Need To Educate On How To Use Bank Account.
It is one of the crucial part of the strategy for saving money. Let your kids know what you intend to do in order to achieve his financial needs.
As such letting him use his account smartly plays a pivotal role toward achieving goal set. Guide him how to properly use the banking channel to maximise benefits.
Alternate channel such as ATM card, internet banking, mobile banking are some of the services which need to use wisely otherwise spending through these medium is quite tempting and it may lead to income leakage.