We live our lives in a way that most of what we save is for a home down payment or retirement. Happy couples who both have serious wealth-saving goals seem to share differences in their saving patterns and plans. For instance, wives are 16% more likely to be saving for an emergency fund of sorts, while men are 50% more likely to be saving for a new vehicle. There is, however, one aim that both couples want to achieve – to give their child the best life they can. A lot depends on career guidance and finances that the child may need as they grow up.
For instance, learning new skills, travelling, exploring, studying and working abroad –all these are experiences are aspirational for all of us and givenan effective methods, every parent would want to save as much as possible for their child. Here are some simple ways you can save for your child’s future.
1. Start small, but start now if you want to study abroad
The benefits of having a small but dedicated bank account to your child’s education is one of the best ways to start savingfor their future, more so if your child is looking to study abroad. The outcome is pleasing and saving a little money every month is a smaller effort. If you’re looking to send your child to study overseas, you could invest in stocks and bonds or both. The ideal balance is attained from 50% asset and 50% from debt. One can set an aim of years and begin by saving a certain amount of money every month. If you don’t have the appetite for such a risk, you ought to consider investing in Monthly Income Plans from Mutual Funds can also prove to be beneficial in the long run.
Also read: Affordable Education in USA
2. Assess annually if you’re looking to study overseas
Once you start saving or investing money for your children to study abroad, make it a point to check your banking status once every year. This will help you understand your needs and requirements and may also help you understand spending and saving patterns. If in a certain year, you think you could save more by postponing a family holiday to attain college financial goals of study overseas, it would help you plan which occasion would be ideal for you to skip.
3. Prioritise well even when you fall short of your financial target
Many parents panic at the sight of their target, and rightly so, because there is little benefit to having a study overseas education fund if it doesn’t come at the right time. If you end up hitting a point of no return, be careful not to spend your retirement money on your child’s education. You retirement is of higher priority than your child’s career guidance.
These ideas about financial career guidance to study abroad bear fruit only when life goes more or less according to how it has been planned. In case of unfortunate events like accidents and disasters, your savings can be grossly affected. Getting insurance should be able to guard you from this situation.
