Wednesday, November 3, 2010

Saving for Affordable Education

It has been said that education is the best gift that a parent can bestow on a child and so it is important to plan well to ensure that the best education is attainable for the child. A good education can be expensive, but with proper planning, the burden can be lessened on the parent or guarding. It is important to start by having an estimate of the cost of education that is considered best by the parents. Once this is done a good savings plan must be put in place that will put away a substantial amount of money well in advance.

Ways of Saving for Education

The best way to ensure a good education for a child is to start saving early way before the child is ready for school. This will ensure a good financial base when the child is ready and less stress for the parent. Some parents even start this when expecting a child or as soon as the necessary documentation for account opening in financial institutions, like the birth registration certificate, is processed. Most insurance companies are incorporating an education policy as part of their life insurance products. In this way a small premium is paid monthly, and the policy matures in different stages in a child’s life, making it easy for parents to offset high education cost, all the way to college.

It is becoming increasingly common to find parents who purchase stocks and bonds that can be used to finance education for their children. It is always beneficial to instill good values in children and financial responsibility is one such value. When children are old enough to understand the use of money, especially when they are given some pocket money, they should be encouraged to keep some aside in their bank accounts for their education and future.

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