The cost of higher education is increasing by leaps and bounds. The need for access to higher education and the cost required will put a financial strain on you and your family. That is why it is vital to start planning for your child’s education as soon as possible, because the earlier you begin, the more time you allow your money to grow.
The education policy will provide the funds needed by your child to pursue further education and assures that whatever happens in the future, your child will still have the means to pursue some of his/her goals in life.
If you don’t plan your child’s education from the beginning you may end up in a situation where either have to borrow big loan (which eventually be re-payed by you or your kid) or you have to stop your child’s education (which is not a good idea specially in this competitive world). People whom we interview often ask us what is the right time for them to initiate an education policy. We generally advice parents that it doesn’t matter when you start but sooner the better. Following are 6 tips to plan your child’s eduction:
Plan Your Child’s Eduction In 6 Simple Steps
You can argue that how can you plan something in easy steps as every family is in different financial situation but the fact is that you have to plan one day or another so why not start now!
- – Keep The Education Plan In Your Name: If you can keep the plan in your name that would be an asset when you apply for the financial aid. Many financial institutions usually put huge financial requirements which aren’t possible for your child to fulfill. So, choose wisely and keep the plan in your name or in the name of your wife (insurer).
- – Choose College Plan Wisely: There are different plans to follow, choose the one which suits you best. There are certain ifs’ and buts’ on saving for college plans, so better inquire about the best plan which suits your needs. Also investigate the plan and inquire about how they invest money to help it grow. Be sure to get the details of the plan you have opted for.
- – Estimate How Much You Can Contribute To Your Child’s College: Get zeroed on the contribution and estimate how much you would be eligible to pay when your child starts his/her college. Before your final decision, give it a careful thought considering your family income. Moreover, always estimate the amount you would easily pay before opting a plan.
- – Invest In Tax Free Plans: This is an asset when you opt for the educational saving plan that gives you a head start. If the money you are paying is also earning your tax benefits that’s best for you and your family. There are many plans which help families to save for college because anyone can open one, and the money invested grows tax-free and can also be withdrawn without being taxed.
- – Determine A Tuition Program: Prepaid tuition plans are college saving plans that are guaranteed to increase in value at the same rate as college tuition. So by purchasing the equivalent of a year’s worth of tuition today, you ensure that in 15 years your investment will still be worth a year’s worth of tuition at the current rate.
- – Compare Different Plans: Comparing different plans will help you in determining the best and suitable plan for your child. This will also help you in understanding the current market standing of that particular plan.
Remember, there is always a good time to invest for future, especially when it’s your child’s future. Please leave me a comment and share your planning experiences with us. Don’t forget to Subscribe our RSS for latest updates delivered to your email for free.