5 Best Investment Plan For Child Education
As a parent, having the best investment plan for child education becomes a very important priority right now. Higher education costs will require parents to save and allocate and more in this section.
But with an increase in education costs that can reach 10-15 percent per year than saving alone may not be enough. Therefore you have to find a better way to guarantee your child’s educational future. One such way is to invest.
Before investing in children’s education, parents should know in advance what the range of funds needed. Also, consider the rate of inflation that occurs each year.
Here are some alternative investments you can make to meet your child’s education costs:
1. Education insurance
Protection of children’s education will be acquired by insurance education. As a parent and insurance owner, you will feel better, because if there are risks or unexpected events happening to you, then the insurance company will guarantee your child’s education without having to pay a premium anymore.
This is in accordance with the contract agreement with the insurance that has been agreed previously.
If you do not have this insurance then I suggest that you can immediately have it, because insurance is also influenced by your age and health condition.
Do not hesitate to ask the insurance agent if you have any doubts regarding premiums and needs of your children’s education in the future.
You should also take further consideration when there are agents that offer insurance products as well as investment to you. Before you take the product, make sure that the premium value and the investment you spend will be proportional to the results that will be obtained later.
2. Gold investment
Gold has a value that tends to be stable and liquid. Therefore gold became an investment choice by many people since the first.
To make gold as your child’s educational investment option, there are several things to note:
- Gold is a long-term investment. Therefore you should be sure when your child needs a fee.
- It is advisable to store gold bars with high levels of 99% rather than storing gold in the form of jewelry.
- Before you buy the gold, you must know the price fluctuations.
To invest in gold today does not have to have enough money first. There are companies that provide the program of installment of gold bullion with interest.
3. Property investment
Property investment is a minimal investment risk with the opportunity to gain huge profits.
Try to note that property prices always rise from year to year.
An example is the value of land that always tends to rise. So is the case with the price of a house or other building.
If you have enough funds, then you can buy the property in cash. Maybe you want to buy a house for investment, if you do not have enough money, you can buy the house by installments as long as it does not disturb your financial plan.
Once you have the house, you can rent it to someone else.
As time goes by, with rising investment value, you can resell the house at a price many times over when you first bought it. You can use the money to pay for your child’s education when entering a college or school abroad.
4. Education savings
Educational savings are the easiest way to invest for the future of your child’s education. This is generally done to pay for routine educational costs, such as buying school supplies, paying monthly fees or paying for a course.
If you compare these education savings as a long-term investment then the results are less profitable. This is because the interest given is usually very small only around 2 -3 percent per year. This is certainly not worth the cost of education with a higher increase for each year.
Deposits have higher interest rates when compared to savings, ranging from 4 to 6 percent annually. But these deposits cannot be taken at any time.
Withdrawal of deposits can only be made in accordance with the agreement that has been done, for example within a period of one month, three months or a year or maybe longer. It depends on the agreement that you have with the bank.
You are advised to choose an auto rollover program.
Because this program will automatically add the interest you earn each month to the deposit funds you have invested.
This will make deposit and interest funds rise on a monthly basis.
However, if you are studying on an increase in tuition fees that reach 10 – 15 percent each year, then deposits also can not be used as a choice for long-term education savings.
Thus, you can still make deposits as an investment choice for short-term financing purposes, for example for the payment of tuition fees on an annual basis.
So that’s 5 best investment plan for child education that you can choose as a consideration. Financial planner even suggested that you prepare for education fund when your child is still in the womb. So do not delay investing for the future of your child.