Who does not want his child to receive the best education? Guardians explores the best colleges, schools, and cities for higher studies. They compare the best options and consider counselling. However, the costs may quickly rise. Individuals fear breaking the bank or running out of their savings.
It is ideal to consider a separate savings bank over affecting your goals. Most individuals delay their retirement savings to fund their child’s education. However, it may prove to be a wrong financial decision. Don’t dedicate your savings to child education goals. Instead, split it into achieving your goals.
For example, if you save just £100/month for a 9-year-old child, you can save £9600 by the time he turns 18. The amount you may want to save may vary. However, don’t stress about missing the goals. You can achieve it with little planning. The blog lists some saving tips for kids in college without affecting the budget.
How can you save for a child’s school fees and university fees?
Educating your children is expensive. You must save for tuition, college fees, transport, lunch, uniforms, etc. If you send your child to an independent school, you encounter high school fees. You have 11 years to save for your kid’s college. He would not be starting before that. Here are some tips to save for your child’s school fees:
1) Set up a savings account
Setting a separate savings account is one of the best strategies to save for a child’s education. Analyse the interest rates and compare your options. Check the other benefits you may get with it. Some banks may provide you with the best savings account options for the child’s education.
Identify the limit to maintain and other aspects. Now, decide the amount you can save per month in the account. Review your budget and arrive at a number. It may imply compromising on some wants like- subscriptions and dining.
2) Invest in the Junior ISA
A junior ISA is a savings account for children specifically. Under this, the parents can save a specific amount for 18 years. After that, you can legally grant the account to the child. The best part about the account is it is tax-free. One cannot make any withdrawals until the child turns 18. Moreover, individuals under 16 may save more. You can save up to £20000 plus £9000, which you get after 18.
3) Consider student loans
Student loans are one of the most common and easy ways to fund the education. Most guardians lack sufficient flexibility to save enough by month’s end. It may affect the child’s career savings. However, you may still work towards it. Analyse the best financial equipment available for your finances and credit. You may get it despite having an unmanaged credit history.
Check loans for students with bad credit scores. It is for students approaching the university for education. Identify the amount you must spend and compare the interest rates. Usually, student loans cover tuition, maintenance, and accommodation expenses.
Identify the benefits it hosts and choose accordingly. Calculate the exact fund requirement by researching. You can also take the help of a financial expert. He may help you understand the costs by basing your financial affordability and income. In this way, you can fund the child’s education hassle-free.
4) Invest in Junior ISA shares and stocks
Yes, you can open a stock and share an account with a Junior ISA savings account. It is the best way to double up your savings. Invest in it at least 10-11 years before the children’s college age. It helps you compound returns and maximise the yield.
It is the best for individuals who want to avoid earning tax on dividend payments, earned interest and capital growth. However, it may not be ideal for guardians who wish to withdraw the money within 1-2 years of saving. Yes, the account holder cannot withdraw the money unless the child crosses the age of 18.
5) Improve your income sources
Increasing your income helps boost your savings. You can exercise flexibility in meeting your child’s education needs. Identify your current income and savings. If you cannot save enough, an additional income may help. You don’t need to explore work outside. Instead, you can earn money at home online. Check the best gigs from verified platforms.
Identify the skills and expertise needed. It will help you earn extra and boost your income. Accordingly, you can invest in the aspects of child education that are valid. Apart from gigs, explore the promotion possibilities. If you have been working at the firm for some years now, you may get one. It may improve your prospects of dedicating more towards the child’s university goals.
6) Explore the best Scholarship possibilities
Identify whether your child qualifies for the scholarship. It is the best way to save on educational expenses. Usually, merit holders get a scholarship that covers higher studies. It may include the costs for accommodation, books, stationery, and access to equipment and other stuff.
However, some scholarships cover only a portion. This means you must pay the remaining amount. Identify the balance and the savings that may help you. If it does not meet the needs, check other aspects. Some financial facilities may help you cover the rest of the costs.
Explore the flexible finance options available for poor credit scores. You may get installment loans for bad credit from direct lenders only with no guarantor requirement. These loans help you cover the requirement by splitting the costs in instalments. You may get despite poor credit management or pending debts. Yes, you may get one if you share the affordability to meet payments. Moreover, you don’t need anyone to support the payments. It ensures individual financial management and boosts credit scores.
- Get income protection insurance cover
Income protection insurance offers a replacement income if unable to work. It may help you with essential household payments like utility payments and mortgages. It enables you to cover the costs unless finances get back on track. Only about 6% of individuals in the UK hold the policy. It is concerning as you never know the next moment. You can also cover the costs of a child’s education with the insurance cover. It provides a cushion to your finances.
Bottom line
These are some of the best tips to save for your child’s education within budget. It will help you identify the facility and save the best for your child. Analyse the aspects that you need to cover your child’s dreams. You can save as a Junior ISA, Cash ISA, savings account, or boost earnings. Identify the aspects that might help you achieve the child’s education dreams.
