Every parent wants only the best for their children. They would want their children to obtain the best education so they can be financially independent. With the cost of education increasing drastically, many parents opt to look for other options to pay for their child’s education. According to a study done in the UK, there are almost 75% of Malaysian parents that still heavily prioritise their children’s getting an admission into renowned universities.
However, the procedure of preparing for the child’s education can be quite devastating. The long and tiring process of handling costs can be quite overwhelming to parents for their child’s education. For instance, for those children who wish to pursue their studies abroad, their parents have to bear more problems such as bearing the cost of fee, accommodation, visa and flight tickets. This is why it is important to know the do’s and don’ts of preparing for your child’s education plan and also buy child education savings plan Malaysia.
Do’s of preparing for your child’s education plan:
- Start early
To ensure an effortless process of your child’s education, the best thing a parent can do is by starting early. There is no such thing as “the child is still young, there is no point in starting early”. Parents should take early consideration especially when it comes to their child’s education by accumulating funds on investing in opportunities that come with a longer time. There is no percentage set for parents to set aside from their income to save for their child’s education. Therefore, it is a good opportunity if parents can start savings for their child’s education at an early age.
- Combining savings and investment together
Some parents may wonder if it is wise to invest their children’s education savings in the hope that they will grow. On the one hand, they may believe they should not touch the money, but on the other hand, they may stand to generate good returns that will help the fund grow. It should be a mix of the two. To accomplish this, parents should invest a portion of their savings in a high-interest account. This gives them the freedom to withdraw funds to take advantage of various investment opportunities while still earning a good interest rate.
Don’ts of preparing for your child’s education plan:
- Not taking inflation into consideration
Most parents may have made a calculation at the start of their preparation to determine the end goal of how much they need to save to pay for their children’s education. Some, however, may fail to account for inflation. Inflation affects not only tuition costs, but also the overall cost of living. As a result, the actual cost may be significantly higher than anticipated. There are three types of inflation which are currency exchange rate inflation, overseas inflation, and education cost inflation. Parents should factor in the appropriate inflation rate because each country has a different one.
- Not evaluating savings and investment
Working parents may not have much time to go over their savings and investments for their children’s education. However,parents should review their savings and investments twice a year to see how their investments are performing and what adjustments they should make to ensure they are on track to meet their goals.