The decision to send your child to school, according to Collected.Reviews, is only complete when the funds to do so is available.
It is not wise to start raising your child’s tuition fees when the child is about going to school. Instead, it should be one of your long term plans that will have you save or at least have a savings plan.
There are several ways to go about saving for your child’s tuition and 5 of such ways as provided for by financial consulting firms include:
1.Open a traditional savings account
The first and what appears to be the most common way of saving for children’s tuition fees is to open a traditional saving accounts where you put in some money from time to time. Depending on the bank you are opening such account with, you can have them label it for the purpose it was created. You can also depend on how often you keep saving money into such an account.
2.Set up an educational trust fund
A trust is a legal act that is created by someone but held by another person until it is needed by the person for which it was created. To save for your child’s tuition, you can create an educational trust fund. Certain amount of money will be allocated to this trust fund and held by a trustee for your child until it is needed.
The benefit of a trust fund is that it can still be available for your child even when you are not. However, in setting up a trust fund for your child’s tuition fee, it is important that you go for a trustee that has a track record of transparency and make sure it is reduced into writing to make it legally enforceable.
3.Invest in Treasury bond
Investment that grows over time is a great way to prepare for your child’s educational fund. By investing in Treasury Bonds, you can grow the funds over the years until the purpose for which it is needed suffices. Make sure you have a careful understanding of Treasury bonds and how it works before investing in it.
4.Setup a registered education savings plan
Another way to go about saving for your child’s education is to set up a registered education savings plan. A registered education savings plan is a more accountable type of savings that goes beyond your emotional impulses. As long as you have subscribed to this plan, a certain amount of money is deducted from your account and added to this plan regularly.
5.Save a percentage of your monthly earnings
A common way of saving for your child’s tuition fee is to apportion a part of your monthly earnings to it. In planning and allocation of monthly expenses, it is important that you include savings for your child’s tuition and that should be recurrent on a monthly basis.
If you have a child, there is no better time to start saving for your child’s tuition fees than now. You can open a traditional savings account, invest in Treasury bonds, set up a registered educational savings plan, or allocate a percentage of your monthly earnings.