As by the ongoing trends, children’s education is getting expensive day by day. The cost of higher studies is significantly high even in Govt. Institutions. And, as could be guessed, not all the students can crack the merit-based entrance test to get hold of a subsidized seat. Many parents need to shell out a substantial amount of money to get their children admitted in desired colleges. To cope up with the requisites, one thus has to plan wisely. After all, parents do not want to compromise on this particular aspect. There’re a few child policies which are claimed to be helpful. Do you think these are ideal options to invest in? Do you have other ideas?
It's really important to invest for your children's education at an early phase so you won't get stressed and worry from where you'll get it when the time comes that your kids need it. There are some countries wherein the government offers educational plans for their citizens and the parents will pay for it little by little, while some offers student loans to which the child will pay for it once he graduated or got a decent job. Both are helpful but it would be better if parents save money separately for their children's education.
I don't want to depend on my country's public school system because, setting quality issues aside, it's just too crowded. I've opted to set up a premium savings account in my child's name in one of the leading banks in my country. I put in a fixed amount every month and this earns an interest that is higher than the usual interest offered by other banks. While it doesn't have the typical features of an educational fund offered by insurance companies, it's important for me to have full control over this fund. With educational plans, you can lose the funds if you find yourself unable to pay the premiums for one reason or another. Well, most plans have features like the remaining premiums are waived if the payor dies. I'll have to risk not having this feature in my savings account.
This is a sad thread for us because the Philippines had experienced failure by the so called educational plans. After paying the premium for many years, the parents were expecting the return on their investments. But the insurance companies failed to deliver their promise so the supposed tuition fee for the child was lost. I don’t know if there is a reliable insurance company for educational plans because so many have been involved in complaints of non-payment of the proceeds. It’s good if the educational plans in your place is good to their promise but here in the Philippines, I am advising against it.
Many of this Insurance educational have some clauses that if you were to get into a bit of difficulty with the payment of your premiums for even a short period of time you may lose the benefits that were agreed to at the inception. Therefore, It may be wise to make an assessment to ascertain if it's possible that you might fall in that predicament.
When I did not have a baby, I never considered saving for children education. Now that I have a baby, I am taking steps to save money for my by child's education. I recently bought an insurance plan. By paying a small amount every year, I will be saving good money in 15 years. When my baby becomes 15, I will have good amount to support his further education. I have also opened a bank account for my baby. I will be putting some money every now and then. By the time the baby turns 16, he will be operate his bank account and use money for his education.
