During personal financial planning, one of the most important considerations is to create the right education plan for your child.
You need to bear in mind that cost of education increases faster than inflation. Therefore, it is essential to plan for the future by starting an education plan for your children as soon as possible.
When to start your child's education plan
Some may ask how soon they should start the planning process. The simple answer is as soon as possible.
Starting an education plan involves an investment strategy that specifically addresses the educational needs of your children. It’s important to start saving early to reduce quantum of the funds by taking advantage of the power of compounding over time.
Important Factors to consider when starting your child's education plan
Plan ahead when starting an education plan.
Designing the right education plan is a long-drawn process; the time period could range from 5 to 18 years. Prioritize your finances early to give yourself a head start. This allows you to benefit from the compounding effect of money and the flexibility to change course according to your lifestyle changes.
Your investments will ride out the volatility of different market cycles when spread over a longer period.
Not every family can afford to invest a lump sum to finance a child’s education years down the road. Therefore, having the discipline to save on a monthly basis, often through a regular savings/investment plan, is a good strategy.
There is a sense of comfort and peace of mind knowing that children can secure their preferred education choices down the road. All it takes is early planning, realistic savings and investment strategy, and more importantly, discipline in keeping to the financial commitments set aside for the education plan.
Finding the Best Education Plan that corresponds to your financial needs
Are you looking for an Education Plan that can guarantee and secure your child’s future? If so, we can help. Please contact us to give you the right advice.