In life, the costs needed for various needs will always be there. One of the costs that require careful planning is the cost for children, ranging from living costs to the cost of education. For that, you have to start saving, including saving for children’s educational needs in the future. But how? The following steps and tips for saving for children’s education:
1. Take into account the inflation that occurred
Inflation is something we cannot avoid. Therefore, we must take into account the existence of inflation which affects rising prices, including increases in the cost of daily living and education costs which will become increasingly expensive.
Our salary will indeed increase with inflation, but we also have to take into account whether this increase will be able to cover the rising cost of living or not. Lest we save money from now is not enough to educate children in the future.
2. Make research and study-related factors
If you want to make comprehensive financial planning, you need to do a little research and study the factors that will affect your finances. For example, you can try to find out the inflation rate, the school fees you want to go to, and other costs.
You can also try to learn about investments and get to know the types of investments that exist. This is important so that you can plan based on enough knowledge.
3. Make a list of assets that have been owned
When making financial planning, you should also make a list of assets that you already have. This will help you find out the point where you stand or your current financial status. The more assets you have, the more assets you have. Conversely, if you have a debt or installments that must be paid, it will increase the amount of expenditure and reduce the amount of money you can save later.
4. Calculate estimated education costs
One of the costs that must exist and must be taken into account when making financial planning for children is the cost of education. The cost of education will greatly affect the financial planning you make. For example, if you decide to send your child to a private or public school. These two different choices will cause different future expenses as well. For that, you should calculate the estimated cost of education in the initial planning period.