How You Can Start Saving for Your Child’s Ivy-League Education
PNB MetLife 18-01-2016 02:56:07 PM
One of the cornerstones for your child’s bright future is a good educational foundation. Over the last 200 years, Ivy-league schools have produced world leaders in the fields of business, politics, finance and research. An education at prestigious schools like Harvard or Yale can open up many doors, giving your child access to a well-connected alumni network and better job prospects. Who wouldn’t want these opportunities for their child? Read More
What is needed for an education at Ivy-League schools?
However, it isn’t easy to enter Ivy-league schools due to their stringent selection process. Besides excellent grades, applicants need outstanding teacher recommendations and impressive extra-curricular records.
Unfortunately an Ivy-league education comes with a hefty price tag. According to a report by Michael Conrath and his team at JP Morgan Funds, college tuition fees and textbook costs will continue to inflate and are set to increase by more than 2.5 times by 2030. This fact might put an education at one of these schools out of reach for most in the near future.
Why start saving now for a pricy education?
Since an elite education is exorbitantly priced, you would need to save over a long period of time. Apart from good financial planning, it’s also important to start investing early into a child education plan. The sooner you start, the less money you will dedicate monthly to gather the required sum.
Not getting a head start for your child education plans may result in taking up loans or dipping into personal savings to meet the high costs. These approaches can have a negative effect on your household expenses and may disrupt your long-term financial planning and safety net. Hence, it’s vital for you to plan well in advance to manage your cash flow.
How to get ahead of you financial goals?
Nowadays most financial institutions offer a variety of investment plans that provide parents with long-term financial planning. A good child education plan will allow you to provide for your child’s higher education without compromising other financial goals. A financial planner will prevent you from choosing between funding your child’s education and saving for your retirement – a financial planner enables you to do both.
When choosing between different child education plans, pick one that provides higher returns and offers tax benefits, as these can be re-invested into your child’s education. As this type of investment requires you to pay periodically over a long period of time, it’s important to ensure that you are comfortable with the process. Before making a decision on investment plans, consult a trusted financial planner to get sound advice on the best education plan for your child and how to avoid unnecessary expenses. It’s also a good idea to review your child’s education plan annually to ensure satisfactory returns.
Although the schools provide financial aid and scholarships, only a handful of candidates are lucky enough to get them. Don’t let the lack of funds become a stumbling block to your child’s education. By investing in the right education plan ahead of time, you can realise your child’s future dreams without having to put your personal financial goals aside.