Preparing Education Fund

Ideally, children's education fund has been planned and allocated since you and your partner are planning to have children. Too soon? Not really. Because of the reality, the cost of education is increasing every year looming. Especially if you're planning to send children in school curricula and facilities "plus", an international standard, and then continued his studies abroad.

If you currently do not prioritize their children's education fund may think may be delayed, since he was only two-years-should be reviewing. "Therefore, we want to equip children with the best education, and education more expensive," says financial planner Mike Rini Sutikno. So, let's calculate the cost of educating your child and tricks to fund it.

What are the costs?

• Tuition. Paid only once when the child entered a stage of education, such as kindergartens, elementary, junior high, high school. Although only one-time, but the funds expended considerable. Can be dozens to tens of millions, even hundreds of millions if you count the money base in the faculty of medicine at the little college someday.
• Tuition. Paid regularly every month or every semester for school children. Costs incurred from hundreds of thousands to millions.
• Support costs. Daily fee to support school activities, such as buying books, uniforms, including pocket money. Change the budget amount each month, depending on needs.
• Extra-curricular costs. To fund a variety of children's activities outside of formal education. For example, paying foreign language courses, dancing schools take field trips, and others.

Where are the funds?
For one month, spending divided into four families: Saving, pay the mortgage debt, pay insurance premiums, and pay living expenses (cost of electricity, plumbing, eating, etc.). Then, go to where the cost of educating children?
For a considerable cost, the money base, obtained by means of saving. Should be done early, for example, since the toddler was born or at least the age of one year. A longer period of time will alleviate the amount of money you have to save each month. As for the costs such as tuition fees, support costs and extra curricular costs, including the cost of living due to the large category of always changing every month.
The amount of each expenditure items is determined by your income and your spouse each month. Ideally, you set aside 10% - 30% of revenues for education fund savings.

How to achieve it?
Saving! Saving money here does not mean you put money into a savings account. The money in the savings bank will not meet the required tuition school later in infancy, because interest rates are much lower than the increase in tuition fees. So, there's nothing wrong you look at the rate of tuition inflation annually. As an overview, primary school tuition now, as a year-old toddler, such as Rp. 10 million. When the child entered elementary school 5 years, the money base can be increased to Rp. 25 million! Saving money here means to collect funds to meet future needs through a variety of financial instruments such as savings, deposits, mutual funds, stocks, or bonds. Through the financial instruments you can meet your financial goals.

Related Article