Providing a quality education for your children

Education is an extremely high financial planning priority for many families. Most families are aware of the increasing financial commitment of providing for a child’s education. Education fees not only for children attending private school or college but more importantly also now to continue on special education, and overseas studies to graduate and to post graduate education.

One of the biggest expenses a family can face is the cost of the tuition itself. Since these costs keep going up, planning ahead is absolutely essential. But few are aware that the increasing cost of tuition at private institutions has normally outstripped the rate of inflation, increasing anywhere from 5% to 15% over the last 25 years or so. Furthermore, while tuition may be the largest single expense of attending private education, it isn’t the only one. There will be further costs to consider such as books, rent, food, and transportation. Together, these financial commitments add up however, they can be prepared for with forward financial planning.

Key Factors:

Saving towards education fees is a financial priority for many families:

--  The rising cost of education fees usually outstrips inflation.

--  There is an increasing need for families to forward plan and seek professional financial advice.

--  Investment selection is an important ingredient to the planning mix.

Many parents rely on savings rather than income to pay for the cost of private education. Money is often put aside for this purpose as soon as children are born and sometimes even before birth. We know that the earlier parents begin saving, the higher the potential of meeting their financial target. Each and every year saving towards education fees is deferred, the annual savings amount required to meet the fees increases exponentially. The cost of delay in planning ahead can have a potentially damaging effect on the financial outcomes. Therefore, it is very important you start saving as early as you can afford for your children.