Let us prepare education savings for kids.
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| Make sure there is always a happy smile, for today and future. Image: millards.com |
When you fall in love, and at the moment
when you take an oath faithfully when married, you would have to imagine a
happy marriage, and then have a healthy and beautiful baby. After that you also
want to prepare for the future of your children. The best way to do that is to
provide them with a good education, so it is important that parents are
financially ready for the child's education.
Considering the high inflation rates school fees have experienced in the recent years, it is important that one should also include an investment plan for child education in that check list. When it comes to establishing a financial plan, check out some of these ideas that'll get you started!
The first thing you should do is to save every month to your income aside, is to open a savings account at a bank. Make sure the savings are not used for any other purpose. Similarly, if you are very wise to invest in insurance, then look for special insurance programs for the preparation of your child's education. This program should make sure your children get the money for college or university, even though you know that there is a chance your child will get a scholarship.
The
first step to prepare education plan:
Amount needed = Current
assessed value x (1 + inflation rate considered) raised to the power of (Tenure)
The website also adds that: If you are planning to use
some of your existing investments towards your child's education, make sure you
calculate the future value of the investment, so you'll know exactly the amount
of money and how much monthly savings can be mad
There is an opinion in money.cnn.com mention that, saving
for your own retirement is more important than saving for college. That
argument has some truth, because your children can get college tuition to the
university or college from a variety of sources. In the meantime, you should
not be miserable because they do not have savings in old age, then you have to
make a retirement plan when you start working. This you must do when you are
young. True, you do not put off so that you can save for your retirement with
less money. If you wait until you are 45 years of age, then you will pay more.
The Money.cnn.com
website also warned that the sooner you start saving, the better. Even modest
savings can pack a punch if you give them enough time to grow. Investing just $
100 a month for 18 years will yield $ 48,000, assuming an 8% average annual
return. You can increase your deposit each time you get a raise or income,
although you also have the right to enjoy life and follow the lifestyle, but be
sure not profligate with your money.
Think for financial engineering to increase your savings,
both for retirement and for expenses your children's education, for example to
buy bonds, stocks and mutual funds to invest in the scheme. You can seek the
opinion and advice of a financial planner, financial manager or financial
advisor. Just for your information: Stock funds
historically have almost always exceeded other investments over periods of ten
years or more.
They will provide advice and proposals that suit your
financial capabilities, and make sure you are not greedy with the hope you want
to get significant results in a short time. Start investing with a moderate
program, so you are not surprised when the economic events or economic
disruption in our country or the global financial crisis.
Additional
advice: When you are discussing with your financial planner,
which you want to set aside at this stage of education: early, secondary and
tertiary education (college or university). Thus the financial adviser will
understand your needs, as long as you honestly tell me about the income that
you generate at this time. The financial planner will make some proposals best
suit your condition and how likely with the passage of time, for example, the
possibility of improvement in your career or your business.
Remember
also this ancient advice: Once you invest appropriate financial
capacity and the type of investment you choose, make sure you always do a
review on a regular basis. Other conventional wisdom is, do not put your eggs
in one basket only, so you have a backup when one of your existing investment
portfolio decreased or losers. Take the time to seek additional income from
other sources. You can trust the advice of WarrenBuffet that exists in the image below:
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| Sage advice from Warren Buffett, the Guru of Finance. Image:naijagists.com |
If you take the time to reflect on some of the famous
quotes from Warren Buffet the "Guru of Finance" as you see in the
photo above, then you can survive financially, either for retirement or for
your children's education in the future.
Please remember this old advice: Once you invest
appropriate financial capacity and the type of investment you choose, make sure
you always do a review on a regular basis. Other conventional wisdom is, do not
put your eggs in one basket only, so you have a backup when one of your
existing investment portfolio decreased or losers. Take the time to seek
additional income from other sources. You can trust the advice of Warren Buffet
as displayed in the image below:
If you take the time to reflect on some of the famous quotes
from the "Guru of Finance" as you see in the photo above, then you
can survive financially, either for retirement or for your children's education
in the future, and even you can retire
young and retire rich, and you enjoy a prosperous life at a young age and upon
retirement, and of course you can enjoy life more freely like a vacation to the
paradise island, or have a nice home, and a dream vehicle.
Your own future and the future of your children are
equally important, so that it becomes your duty to prepare it together with
your spouse. If you are a single parent, you probably will be working hard to
realize your dreams, but every effort will always be a road, which is wide open
for you and for your family.
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