Despite many new parents still having student debt themselves, new surveys have revealed that almost half of parents in their thirties do not want their children saddled with educational debt. Conducted in America, around half of those surveyed by Fidelity, did not want their children to pay a penny in educational costs.
On average they had around $1500 saved for their child’s future education. On average, their child was aged five and under. Although this would not be enough, the intent is clear. In 2007, only 16% of the same age group were of the same mindset.
Although there are several options for saving money, making your money go further and as a tax efficient as possible is not easy. Often the best way is to talk to a fully qualified financial planner. This will help you stay on track.
Keep on top of Tuition Fees so you Know how Much you need to Save
One aspect to planning for educational fees is to ensure you keep on top of how much it costs to send your child to university. Invariably, this increases year on year, and so you should be prepared to increase how much money you are saving to meet the cost.
Another aspect to be aware of is that although you may budget for three years worth of tuition fees, your child may take longer to complete their degree. So having extra in the bank is advised.
It is a good idea to start sooner rather than later. With the right financial product, not only will your money be tax efficient, but you can take advantage of factors such as compound interest. This makes all the difference in meeting the cost of university fees.
Also, don’t miss monthly payments. It is a good idea to establish automated payments from your salaries account into your savings plan. This minimises temptation to spend the money on something else.
It was worth bearing in mind Keith Bernhardt, VP of Fidelity’s words:
“Millennial parents are much more ambitious and optimistic about covering their children’s college costs, but they’re not ahead of the game.”
So what is the Best Way to save for my Child’s University Education Fees?
The first priority is to contact me so we can discuss your requirements and expectations. We can then take a holistic approach to making your money work for you, using the best school fee planning financial products on the market. On top of this, you will access to my award winning financial planning advice and knowledge.
Together we can help you plan for your child’s university education. Click here and complete the Call Back Service form to get started.
Source: CNN Money