Education is the best legacy a parent can bequeath a child. It is a very rewarding investment. Every parent wants the best for their children and this generally includes a good education.
With the resumption of schools for the new session this September, planning and saving early is a good idea and the best way to start. However, most families don’t know where to begin.
The cost of education is ever on the increase, rising at approximately three times the rate of a family’s other general expenses. Although parents and students have traditionally borrowed to pay for schooling, this option can leave them with considerable amount of debt after graduation.
Why not consider these options as proffered by 9jacashflow.com and Nairametrics
The importance of budgeting can’t be over-emphasised, having a family budget prepared on a regular basis goes a long way in planning. Budgets if nothing, give you an insight into your household income and the likely expenses that will match it.
Every single naira that you earn must have a mission. Without budgets it is easy to think that you have the money only to find out later that you have to borrow to augment.
Cut your coat to your cloth
If your Children school fees per term is more than 50% of your monthly take home pay, then you have basically set the stage for hardship and borrowing. For example, a family that earns a combined N500, 000 per month will need to save N75, 000 every month to pay for a N225,000 per term school fees per term. Anything above this is a recipe for incessant borrowing.
The ‘Next Best’ is also cool
Giving a child the best in life is every parent’s dream but achieving this comes with a price, which an average working class family might not be able to afford. For example to attend the best schools in the world- Harvard, Princeton or MIT costs over $30,000 per year for tuition alone.
Rather than sweat yourself out trying to afford the highly priced schools, there are other nice options for students who cannot afford to pay for an Ivy League school.
Work harder; Work Smarter
Big dreams hardly die so if you still want your ward to go to that big school then you might have to work really hard and smart for it. Putting in more efforts at your job with commensurate result could guarantee promotion and a higher salary.
Why not explore other means of augmenting your salary? If you are good at trading then you can have a ‘buy and sell’ business by the side, which can help fund the school of your dreams for your children. Alternative income helps increase the amount you can throw on school fees when you earn more.
It’s interesting to know that banks are now considerate enough, offering parents and students various saving options to cater for less stressful school fee payment. A visit to your local bank could be helpful, meanwhile checkout Access bank, GTbank, Sterling bank
Get an Insurance plan
This is perhaps another very good way of ensuring your child goes to the best school they can go to. You can take out an insurance policy that can help you save towards your children’s school fees.
By buying insurance you get the dual comfort of saving towards that dream and ensuring that your dream still comes through if you are incapacitated or die.
Invest towards the future
As earlier stated, education itself is a long term investment option with awesome benefits. To fund this quest you can invest your money in:
- High yielding Mutual funds
- Stocks and Bonds (eg. buying an FGN Bond with 15% ROI per annum)
- Tresury bills
- Cryptocurrency investment
- ForEX trading
- Real Estate etc
By leveraging on the power of compounding interest, you can grow that money exponentially helping you pay for a quality school even up to tertiary level.
Negotiate your way
It would interest you to know that if you don’t bring up the topic of reducing tuition, schools won’t automatically offer options. Don’t be afraid to get a discount when you’re deciding how to pay fees/tuition.
Some schols could offer discounts for siblings of current students. For example “If you have three children, one could be offered some discounts or free education,”
Now students are crowdfunding their education expenses. GoFundMe education campaigns have raised more than $60 million since 2014.
Here are four of the top crowdsourcing platforms:
There’s a popular adage that says if you think education is expensive try poverty.
Education is the best legacy…its a worthy investment!
Paying fees for education abroad