When thinking of financial planningUsually, the first goals to be achieved are home ownership, the car, and retirement. However, and child rearing It should also be a priority, as investing in quality education will make a big difference in the lives of family heirs.
Even though the project of having a child still seems distant, it is important to start thinking about what to do to ensure their children's educational future and the financial planning for their education should begin in their early days. So we have selected some tips that will help you to better plan the education of childrenfrom elementary school to college. Check out.
When, how to start and what to do?
Planning should begin in the early days of the child's life and as any other type of financial planning, besides organization, setting goals is critical. According to the Financial Planning Guide published by BOVESPA, between 0 and 7 years of life of children, the ideal is to save for elementary and high school and only between 7 and 17 years, save for higher education.
One of the big questions is how much to save. It is well known that there is no way to define exactly how much parents will spend when they start pay the children's schoolHowever, one can make an estimate. According to research carried out by the National Federation of Private Schools, the average annual spending for kindergarten and primary education is $ 7,200.00. Already according to studies by the Getúlio Vargas Foundation, it is estimated that spending on higher education double.
From this, a minimum monthly amount to be saved can be set. It is crucial to remember that as in any situation involving financial issues and spending, it is necessary to have common sense and adjust savings to family earnings and not commit more than 25% of the monthly budget to this type of savings.
After setting a goal, try to be true to it and forget about that money, which can be deposited in a savings or intended for applications that do not allow the withdrawal of money within a minimum period. Another suggestion is to allocate part of extras like vacation and 13 salary for this purpose.
Another tip is to open the savings or application in the name of the parents. This kind of attitude is a way of ensuring that later on, when the children are older, the money saved is actually intended for education and not for other purposes. Also, when the children are big, call them to help with household savings. The financial education of the children will surely help the family to save and, consequently, will guarantee an? Educational saving? fat.
Time has passed and we have not spared. What to do?
Family financial conditions often do not allow the financial planning of children's education to begin from birth, and many families despair of noticing that their children are already in their teens and their parents have not saved anything for their education.
But there is still time. Even if your child is already 15 years old, there is still time. The same suggestions apply to older children. Maybe the final amount will be better, but remember that little is better than nothing.
Another problem may arise when children are about to enter college. In that case, there is no more time to save, but it is worth researching to save. Spend your time researching private college values and housing and transportation costs and look for the cheapest solutions from there. If you have opted for a private course, look for student funding programs or talk to the university's funding department for possible negotiations.
Effective financial planning for children | CHILD'S FINANCIAL FUTURE (April 2024)
- Teens, Children and Teens
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