Saving for your children’s education

It's never too early to start saving for your children's education

It’s never too early to start saving for your children’s education.

We all want to give our children the best possible start in life, beginning with a good education. Paying school and then university fees gets expensive, and can be hard to maintain if you’re not prepared for. 

The cost of private education is continually rising, with some schools charging fees of up to $20,000 per year. Public school is a cheaper option, but there are still those extra costs such as the school uniform, textbooks, tutoring, IT equipment and school excursions.

The best time to begin saving for your child’s education is as soon as they are born. You may not yet know which school they will attend, but you can decide on how much you will need, and how much to put aside each week. Forward planning and saving for your children’s education early on will save you financial stress later in life.

Where to begin

  1. Start saving early – it gives you more options and more time to build up a substantial fund. The savings don’t have to cover the entire cost, but can act as a pool to dip into to assist with extra expenses as they arise.  
  2. Work out how much you will need – will you send your child to public or private school; additionally will your child want to go to university or college. Take a look at the Money Smart savings goals calculator to estimate how long it will take to reach your goals.
  3. Talk to your family – instead of receiving a bunch of unused toys for Christmas and birthdays, talk to your family about contributing to your child’s education fund instead.
  4. Review yearly – evaluate and review at the end of each year where you are with your savings and if necessary increase your contributions.
  5. Seek advice – make your money work for you. When looking into your savings and investment options, ask an experts advice to make sure you are getting the highest return possible.

Ways to save

Forward planning is necessary to reach your savings goals, and for this there is a variety of investment options to look into and strategies to adopt: 

  • Make use of a mortgage offset account
  • Invest in insurance bonds
  • Explore managed funds
  • Savings account

Seeking advice

Before reviewing any of these options, make sure you consider your current financial situation, and speak to your financial adviser for advice.

There are some excellent strategies Blenkhorn Financial Planning can help you with to grow your education fund. Unfortunately, many packaged education plans do not deliver solid returns; we can help assess the best vehicle with the best likely return for you.

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