Education costs can seem very far off, especially if your children are still very young. But planning for your little one’s future education, whether it’s through starting a savings account or investing in mortgage life insurance, can help take the pressure off in the years ahead.
No matter the age of your children, it’s never too early to start saving for the post-secondary education. Whether it’s opening a savings account or investing in your family’s financial security through products such as mortgage life insurance, a solid college fund for your children can have many benefits.
This is because:
- it prevents your children from having to turn towards loans and debts to cover their education
- it makes it possible for your child to attend the school of his/her choice
- it helps you prepare for the rising cost of education
- you won’t have to sacrifice your standard of living to get your child through university
Flexible and Customised Mortgage Life Insurance Products
At 20/20, we understand just how important your child’s future is. Our mortgage life insurance products are designed to protect your family in the case of your sudden passing or illness so that no matter what life throws your way, you’ll always know your family is financially stable.
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4 Tips For Saving For Your Child’s Education
College fees are expensive, and it’s only going get more pricey as tuition costs continue to rise at a significant rate. You can help your child pay for college by saving (and saving early!).
Here are 5 simple tips to help you begin:
1. Start Early
If you begin saving some money when your child is born, what starts off as a small investment has time to grow into something substantial. For example: A small amount such as $50 a month over 15 years at 5% will create a saving account balance of over $13000!
REMEMBER: It’s not necessary to invest aggressively to make an impact on the college fund.
2. Invest Consistently
The best way to begin a college fund for your child is to select a set amount and invest that amount every month. Once a year, consider increasing the deposited amount a little each month.
TIP: If you increase the amounts in small increments, you won’t notice the impact on your monthly spending, but it will add up substantially.
3. Teach Your Child Financial Responsibility
If your child is given everything without having to do any work for it, then they won’t have the appreciation that teenagers who work for their benefits have. Even if you can fully fund your child’s education, it’s best to involve them in the process and have them contribute.
TIP: Whether your child adds 50 cents for every dollar you add to the fund, or a percentage of what they earn, involving them in their future savings will teach them valuable money management skills and have a major impact on their financial future.
4. Review Your Budget Regularly
It’s very important to review your family budget regularly as your financial situation may change. For example, you may get a pay rise which could enable you to save more, or if your earnings decrease, you may not be able to save as much.
TIP: If your financial situation changes, don’t be discouraged and stop saving. Even a small amount each month will eventually build up.
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To find out more about how our mortgage life insurance products can always keep your spouse and children financially stable, contact us at 1-844-974-2020 or fill in our online contact form.
