Saving for Your Child’s Education Fund
   Updated: 2021-10-19T11:48:37Z
    minute read


According to the Bible (Proverbs 13:22), "A good man leaves an inheritance to his children’s children". Inheritance here can mean many different things. It can be physical, spiritual, or emotional. Let us focus on the more tangible and all parents can relate, which is education.


Saving for Your Child’s Education Fund
"book-asia-children-boys-education" by sasint is licensed under CC0



    One of the many roles of parents is to provide for the well-being of their children, satisfying the three aspects above.


    This is why it is most important for parents to be with their children in their developing years. This is the stage where behaviors, attitudes, and habits are formed. We parents must fill the role of first educators as we prepare them for their K12 school experience.



    Choosing the Appropriate School


    Choosing the ideal one depends on the following factors:


    • Location - Ideally, the school's location must be within your acceptable distance of travel. You don't want your kids to travel 30 kilometers just to go to school.
    • Budget - In most cases, the Education Cost is the deciding factor why parents enroll their kids in a public or private school.



    Saving for Your Child's Educational Fund


    In an ideal scenario, saving for their education fund must start the moment your child is born. Unfortunately, this is easier said than done. Parents know how difficult it is to keep the household financially afloat during this early stage of parenthood.


    Even though it's hard to save given the responsibilities, force yourself to do so. Build the habit of saving as it will help your family in the long run.



    How Much will I Save?


    To have a ballpark amount, you only need to answer two questions:


    • In terms of expenses, will you choose a private or public school?
    • In terms of educational quality, will you choose a private or public school?


    Remember that your children will spend 16 (17 if you include preschool) years of their life in school. So you need to take into account any increase in expenses that will surely happen during this time.



    Is Saving Enough to Build the Fund?


    If you belong to the Rich Income Cluster, where your monthly income is Php219,140 or above, it might be possible to get by just by saving and putting the money into High-Yield Savings Accounts.


    For the rest of us, we may need to get creative on how to grow our funds. One way is through investing.



    Where Should I Invest?


    Given that this is for your child's future, you need a relatively safe investment vehicle.


    Here are some examples:


    • Money Market Funds
    • Treasury Bills, Notes, and Bonds
    • Balanced Funds


    For high-risk high-reward types, you can invest on these funds:


    • Equity Funds
    • Index Funds


    If you have extra disposable funds, you can actively trade in the Stock Market and Cryptocurrency Market to add to your funding.



    Other Helpful Tips?


    • Don't ever depend on a single source of income. Find ways to have multiple income sources.
    • A lot can happen during the course of our lives, so it is better to be covered. Get Life and Health Insurance.
    • Just because you provided for your family, it automatically translates to good parenting. You are just fulfilling one of your many responsibilities. Be there for your children. Be the first one to teach them the universal law - Do Good Avoid Evil.




    Your responsibility as a parent starts the moment they are still in the womb and 'technically' ends the moment they reach adulthood or start their own family. You don't own our children, and you definitely can't control them.


    What you can only do is provide them with a nurturing environment. That will enable them to grow as responsible and God-fearing individuals.


    Giving them the appropriate education is one of them.



    If you have ideas that can help our fellow readers in building their children's educational fund, share them by commenting below.






    "Education is the most powerful weapon which you can use to change the world."
    Nelson Mandela
    - Your Life In Perspective by ÆlfRæd (Elf Counsel)
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