By some measures, tuition has increased an average of 8% every year in the last 25 years. What does this mean for your child? A child born today could face a tuition bill three to four times over what a college student pays today. One estimate holds that scholarships and grants cover less than half of all college costs, on average Thus, it’s imperative not only to save for your child’s eventual college costs, but to start now.  

Tertiary education is without a doubt expensive, and is spiraling out of hand from more and more people. Being unable to provide for a tertiary education definitely means losing out to people who do.

This is a fatal flaw in today’s ever so competitive job market. Soon, a degree will be the minimum requirement for s good job. 

That means that saving up for an education is important. It certainly is not an easy task, but one that is crucial and requires self-control to fulfill. It requires a plan, and the commitment to follow through your plan.

First, calculate your needs. Perhaps, estimate for one can never calculate inflation. Research on the costs of courses, hostel fees, living expenses, costs of books, transport fees. Nothing should be left out. Then, look at the different ways of funding.  It is good if you can find an option that can meet your estimate cost at the lowest interest rate. Take note, you might not want to include the possibility of your child working to pay off a bit of the costs when in university. In some prestigious universities, working when studying will really kill the grades. That is for certain. Now, work towards that estimated number through endowment plans, unit trusts and some other way that you want to use.

Put aside a sum for that purpose each month. Be logical. Do not put away too much until you realize that you have compromised on your daily living expenses. It should be a number that you will be comfortable with in the long run .Using that same number, figure out how much you will have by the time your child is ready for university education. If you have more than one child, your goals need to be more ambitious. Seek a financial advisor to help you with the confusion and frustration.

Always remember no debt is definitely better than any debt. Do not think of loans until you reach the time to decide. If you already have enough by then, use your own money to pay for it. Having a debt to be paid off after graduation is not a pleasant thing. Those should only be “last resort”.

Related posts:

1. Are you expecting? Great news! FIRST offering of its kind in Singapore. This...
2. Link between marathon running and saving Lately when I was doing up research on motivation and...
3. Do You Have The Passion To Save Money! Talking about passion makes me quite excited and i...