Are you planning for your child’s financial future?

Author : teriann

When you grow up what career do you want to have? That is a familiar but annoying question that persons often ask persons as they make preparations to leave school.  The question they should be asking is: Have you made a financial plan for the future?

Often young persons leave high school with no idea of how they will accomplish their financial goals. As a result they drift from one unsuccessful job to another in search of financial stability.

Start Early

It’s never too soon to start saving for your child’s education. There are a number of financial organizations that offer long term savings options geared towards ensuring that your child has a financial cushion to soften the blow of high school fees. Some parents feel that a child does not really need to have a savings account but I disagree as if you wait to save it might be too late.

So if you set aside a small amount of money every month can make a difference when faced with hefty school fees at the tertiary level. You can’t just focus on the present as the future will catch you unprepared and ill-equipped.

Less Debt, More Investment
Many families have to rely on student loans to cover college costs. However those loans come with hefty interest rates and the debt will easily feel suffocating.  It’s important to avoid this by putting aside enough that  can reduce your need for a loan in the future.
You can earn interest on your money by opening a savings account today versus paying interest on a loan later. The best graduation gift you can give your child is to help him or her leave college with no debts.

Of course there is no way of knowing how much a college education will cost by the time your child is ready for that level however, it is safe to assume that the costs will increase. Even if you only half of the money is put away, that can set the foundation for the child to at least begin his studies.

Not going to College?

What if your child does not want to go to college? Have you wasted your money? I don’t think every child will decide to go on to study at the tertiary level but they do need a skill and some way of earning a living. This means some kind of training and this will require some financial support.

So what’s your take? Have you planned for your child’s financial future?

Teri Ann Renee Paisley

Gleaner Online Writer

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