ISEGHE AJAYI 

It is quite true that having a financial plan for your children in this current economy can be very challenging, but it is a good course as it will enable you to safeguard their financial future, especially in their academic pursuits. 

Besides, you will enjoy peace of mind concerning their education or payment of school fees as most schools will be vacating this month. 

With the high rate of inflation having a multiplier effect on school fees irrespective of the age, each passing year, there is a need for appropriate planning of the future of your children. 

This could be through savings which involves opening an account in a bank or consulting a financial consultant or advisor who is resourceful in personal finance. 

Do you know that despite the unfavourable state of the economy, it is still possible to invest in your children’s financial future, especially with a good financial institution. 

That is why every individual, especially parents, is expected to have a financial plan, which could be either a short or long-term goal to avoid the financial pressure that comes with the inability to meet certain obligations. 

With this, you can safeguard the future of your children educationally and this can only be achievable through self-determination and proper financial prudence. 

Remember, education is the basis of economic development and growth in any nation, denying your children of such privilege means you have failed in your responsibility as a parent. 

To give your children the desired education without financial stress, it is very important to commence investing in their future which appears to be a long-project. 

Education is the best gift or legacy any good parent can offer to their child regardless of their status. That is why to fulfill such obligation which is also a huge investment for parents, it is crucial to have a good financial plan for your children’s education to avoid financial heartache especially when it is time to pay their school fees and other bills. 

The following tips will guide you to invest properly in your children’s education: 

Set up A savings Plan 

There is an adage that says ’time waits for nobody’. Over the years people, especially the low-income earners, always complain of the difficulty involved in saving money. Irrespective of what you earn, in as much as it is regular, it is possible to save with proper financial prudence and discipline. 

Early timing is a flexible factor when it comes to saving, and the earlier you start saving for your child’s education, the better for your finances. 

Open an account early and start putting a reasonable amount of money for your children’s education such that it must be solely for the financing of your children’s education. 

Know your Financial Strength 

After opening an account dedicated principally to your children’s education, you should also know your budget and your financial strength and competence. Furthermore, after computing all your expenditures versus cash inflow or earnings, set aside a certain amount of money each month within your capability for the education of your children. 

Mind you, it is a long-term project, and once you key into it, the better for you financially. 

All parents want the best for their children and these include a favourable environment for learning and proper value for the children but do not go about incurring debts just to pay for your child’s education because you are trying to impress your peers and show off. Look for good schools you feel you can afford and pick the best out of such schools. 

Constantly Service The Savings Account 

Opening an account is a good start but constant servicing or putting money into the savings account is equally important as it will yield good results particularly when confronted with financial challenges in terms of school fees. 

Therefore, it is vital to save regularly so that you can have money to finance your children’s education. 

Also, you may think putting a large chunk of money into your children’s education every year would do the trick but things may go wrong along the way such that the money may not be forthcoming. So, it is reasonable to save regularly and consistently. 

This signifies that you need to dedicate a significant amount or what you can afford each month. 

Set Your Priorities Right 

You must try as much as possible to learn to prioritise things, especially in the area of your children’s education. 

Under no condition, must it be compromised because it is an important priority. 

Therefore, you need to set your priorities right, and in doing that, you may need to cut down on some of your expenses and luxuries so that you can concentrate on your children’s education. Moreover, avoid spending on things you can do without to accommodate savings. 

Have a Plan 

You can try to do a calculation of the total cost and it does not have to be exact but you can do a rough estimate just to have an idea of the cost. 

With this, you can have a plan on how much you have to save each month. Also, with the cost of education mounting, comfortably affording our children’s school and tertiary education fees requires careful budgeting. 

As with any investment plan, the sooner we start putting money aside, the longer we will have for our money to work for us. 

Avoid Credits 

The repercussions of not planning sometimes may coerce you to go for a loan and use it to finance your children’s education which can be avoided if properly planned. 

Although the power of compound interest works in your favour when you invest, the same scheme works against you when you borrow and make credit the most expensive option especially if you are making use of an unsecured personal loan. 

It is frightening to think that the cost of credit to fund advanced schooling can work out to almost four times more than your total education costs if you had invested for these schooling levels from birth and paid for the early schooling years from your salary. 

Research Investment Options 

If you decide to invest in education, there are many investment products available that might suit your needs, including various specialised education policies. 

It is important to research the various options available, comparing costs, restrictions, expected returns, and other product features and benefits. 

Consequently, an independent financial adviser will help you make these complex investment decisions. 

They can also help you assess your current and future financial situations and recommend the most suitable investment for you to embark on.