How to plan for your child's college education

11:27 PM


Having our own family is a big responsibility and one of the major expenses of having a child is education. I once conducted a seminar about money management and one of the topics was about debts. When the audience was asked about reasons why people borrow money, education expenses came as one of the top.

So I asked them again, "upon conception, did you have plans of sending your child to school? Why does it seem like an emergency for parents to send their kids to school? Why do you need to borrow money for that?" Their answer, nothing but total silence.

Education is actually something we can plan for. We now have around 18 years to prepare before a child goes to college. But unfortunately, many fail to plan and end up borrowing money just to send their kids to school. Worst, not send them at all.

We need to set goals in life and if we have kids, one of our goals should be to provide high quality education for them. But how do we plan for our kids' college education? Just follow this simple steps.

1. PROJECT
2. PROTECT
3. INVEST

HotForex Affiliates PROJECT - It is important for us to have a vision of the future. We will not be able to plan and take action if we do not have an idea of what we are supposed to achieve. You can use this template to have a projection of future education expenses. (It may not work on tablets and smartphones)

Note: Above figures are just estimates. Actual need may vary.

PROTECT - Let us ask ourselves. Do we still want our kids to go to college even if we are no longer there to provide for them? Having an adequate amount of PROTECTION is an essential part of a successful financial plan. It will ensure that our financial goals are protected should unfortunate events happen to us. It will give us a sense of responsibility, being proud of ourselves, and of course, peace of mind. To have an estimate of how much protection should we have, please visit this link if you haven't done it before. Life Coverage Analysis

Lastly, INVEST. Since we also have other responsibilities, we do not want to spend all our income just for college education. We have to make our money grow! It will be easier for us to achieve our goals if we will make our money work for us. Take note that tuition fee increases at a fast rate and so should our money.

There are several strategies and products out there that can help us achieve our goals. Talk to a financial planner to have a plan suited for you. Planning is a start but will not be effective without implementation. Let us make this world a better place and provide quality education to the next generation. Good luck to all of us! :)

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