Get real. Understand the power of money and how it can help you achieve your goals. Learn how to effectively plan for your finances.
It is every parent’s dream to see their child get the best education. We have so many options available today. I remember, when we were in school, we had only five major options—Commerce, Arts, Science, Engineering or Medical. A fortunate few would choose something different.
Today, we have career counselors and a battery of tests to identify what your child is good at and what professions are best suited for them. Parents and kids are overwhelmed and confused with choices. But the bigger worry is the escalating costs of each of these career streams. What if your child aspires to do the most expensive course? What if he or she has their heart set on going to the US to pursue medicine? Are you prepared for it? Can you fund the astronomical fees that schools and educational institutes charge today? Sadly, we are worried and sometimes, secretly hoping that the child will choose an option that suits our budget. But as luck may have it, your child probably aspires to go to the best college, sending your budget out of control.
There are several professional experts like financial planners to guide you to the right investment plan. One can definitely hire them and get the best investments and education funds. What I would like to share are a few non-financial tips to secure your child’s education fund.
Impart the value of money
Teach the importance of money to your kids from an early age. Let them know that money does not grow on trees and not even ATMs. It needs to be earned through hard work and discipline. Create a minor account and start saving regularly, even if it means one percent of your monthly income.
Understand the power of passive income
Passive income is the income you get through your investments. So, even if you don’t work, your passive income is still credited to your bank account. Invest early and start earning passive income. Teach the same to your kids as well, so that when you need to fund their education, you can utilize either these funds or use your monthly income to pay off regular installments.
Learn financial planning from experts
Understand the power of money and how it can help you achieve your goals. Whatever you focus on will grow. So start focusing upon money, though not from a needy space. Learn how to effectively plan for your finances. Get real. Get your queries answered. Have a spreadsheet and become good with numbers. This will help you plan and focus upon the money you feel you need for your child’s education.
Start saving early
Allow your child to experience horizontally but grow vertically. Basically, let your child explore everything like sports, creative arts, medical, etc so that when it comes to higher studies, your child can make the right choice and grow. You will receive the satisfaction of money well spent.