Tips on Saving for Your Child's Education

Happy New Year Parents.
It's the beginning of the school year and you're thinking about your child's future education. Your child is bright and will be going to college, so the time to start planning is now. Many parents begin planning for schools early to create an education savings account for their child's education. How to save for your child's education is the big question that is asked, as there are many different ways to save for educational purposes.

There are some different methods parents and grandparents can use to save for a child's education. It's important to consider taxation, eligibility and growth aspects of the different savings plans. Many financial advisors recommend plans that are more aggressive and risky in the early childhood years but converting over to more conservative tactics in the years that are closer to the start of college. One reason is that there is less money to risk in the beginning, so higher-risk investments are acceptable. In years closer to the start of college, any education savings account risks should be minimized to conserve the larger amount of savings accumulated.

There are four major methods used to fund schools expenses:


1. Life Assurance Savings - Children Education plan with life cover
2. Savings plans - Bank educational savings
3. Borrowed cash - loans
4. Grants, gifts and scholarship money - government and other scholarship programs

Some savings plans jeopardize the child's ability to qualify for various grants, gifts or scholarships based on need because the savings are created too much in the way of assets in the child's name.
This is where a registered financial planner can help with decision-making with regard to the various types of savings plans. In simple terms, savings earn interest while borrowing costs interest. College tuition savings plans should be set up so that the greatest tax advantages are realized. Saving can cut costs by about half the costs of borrowing, especially when savings accounts are started when the child is born.

Common recommendations about college tuition savings include:

1. Start early
2. Invest carefully
3. Diversify investments
4. Keep in parent names
5. Use tax-advantaged accounts

Some precautions include keeping college tuition savings assets in the parent's names. If accounts are in the child's name, once they reach the age of majority, they can do whatever they wish with the accounts. Tax rates may also be more favorable if assets remain in the parent's names.

All college tuition savings plans are subject to future changes that regulators may implement; always work closely with your financial advisor to deal with changes.

In all of the aforementioned methods to fund school expenses, the life assurance savings stands out of the pack. This is so as it provides these:

1. Provides life cover
2. Protection and Security thereby making sure the Child gets the best education with or without the parents been alive
3.Cheap
4. Tax advantage
5. Can be used as additional collateral for loans

No matter which course of savings you select, the objective is to have sufficient money ready to pay for school expenses that are jumping higher at roughly twice the rate of ordinary inflation without breaking the bank.

Careful planning and consultation with a registered financial advisor in 2020 starts with "you". Why result to panic whenever payment for school fees beckon? 2020 should be an ideal year should you plan well from the set go.

We can help you deal early with potential problems so that this worthy goal can be achieved on the best terms.

To learn more about the best educational plans for your adorable children or any insurance need/products or services, call or chat Funmi on 08085108953

Thank you for your advice. Even though my daughter is only 6 years old and doesn't go to school yet, my wife and I are starting to save for college. For the eldest daughter, we had to take out a loan and pay additional interest. Still, the main thing is that the girl entered the specialty that she is interested in. We are preparing our youngest daughter for school next year, and she is studying at a preparatory school https://www.readingeducation.org and learns to read. We buy her books and read with her at home and teach her to write.