You would agree that kids are the future, and obviously we would want to invest in their future so we can have peace of mind. This is one way to secure their future even after retirement.
This is where education financial planning comes into play. We would like to shed light on financial planning and educate both parents and their kids on the benefits of financial planning, the essence of financial planning and how to go about it.
What is Education Financial planning?
Education Financial planning simply means setting aside money either in savings, investment or trust for the sole purpose of your child’s education. The benefits to educational finance planning is numerous, but we have listed just a few;
Benefits of Education financial planning:
1. Fulfilling your child’s dreams – As we all know that the cost of education keeps soaring each year and the cost of courses vary from each other. To study some courses cost way more due to the technicality or demand of such courses such as medicine, nursing and some tech courses to name a few. Having a financial plan means you can ensure your child studies the course of his/ her dreams without financial constraint.
2. It is actually pretty smart– Financial enthusiasts know that saving for a long period of time is a smart move, the most striking feature of long term saving is the power of compounding interest. The interest earned is, in turn, re-invested and added to the base for calculating interest for the later years. Therefore no matter the cost of your child’s college or university education , having a long term plan can cover it. Start investing wisely now!
3. Protection from unseen circumstances– One of the major benefits is the financial cover to the child/ children in case of the demise of a parent. Based on the educational plan arranged, the child has access to 100% of the sum insured, some policies ensure no adjoining relative, bank or debtor can claim rights to the money. Educational finance plans will ensure your kids’ education is funded, funds will be paid directly to the school and the fund is used solely for educational purposes.
4. Attain peace of mind– There is nothing like that peace of mind that comes with knowing that your kids are taken care of even in your absence. Whether you decide to retire early or splurge on a new house or car ( after all you’ve earned it working for years). There is a level of bliss you get knowing you can splurge with feeling guilty of depriving your kids of a better future.
5. Retirement planning– We all want to retire early and comfortably too. Retiring early means planning adequately for it. To enjoy a happy and comfortable retired life, you need to start building your safety net right now. Planning at an early stage in life can help secure your future against financial uncertainties. Having an educational financial plan gives you one less thing to worry about giving you time to invest and budget for the future.
6. To teach your kids the essence of saving: Your kids are not left out. Education Financial planning helps them develop saving skills and teaches them the importance of it. Whatever career path your child chooses it is important they know and understand how to save and invest their money. We advise to start early, it is never too early!
How GECCA Can Help You in Education Financial Planning.
We have partnered with a financial organization ( a Trust and investment company) to help begin your journey. If you would like to speak with our financial partner, please click the link.