For parents, the biggest worry can be about how you are going to prepare for the education of your children. With the inflation rates going up, there is just no possible way to simply save up for your child’s college fund.
If you don’t want to get caught unprepared, it is best to start preparing for your kids’ college fund while they are still young.
This will give you plenty of time to grow the money, instead of closing your eyes and trying your best to save up for it. Here are the ways in which you can start computing and then saving for it.
Determine the school
First, you have to know which school you want to send your child to college to. Rest assured that this can still change depending on the circumstance, but if it doesn’t, then you are able to save for the right one.
Inquire about the current school tuition
Once you determine the school, inquire about how much the tuition is. Multiply by the inflation factor rate of 10%.
Determine your current required saving
When you get the total amount after the inflation rate, determine how much money you need to save per month in order to reach the desired amount.
Look for investment tools
If you have more than 10 years to go before your child enters college, there are investment tools that you can consider in order to help you grow your money.
Mutual Funds. You can consider fixed income funds because of their risk factors and their proven track record of giving high returns for investments more than 10 years.
UITF. This is offered by banks and can be started with an initial investment of P10,000. Investing in UITF will allow you to grow money without having to study investing thoroughly.
VUL. These are insurance plans that have an investment option on the side. This can be perfect if you are saving up for your children’s college fund.