Soon the new teaching will start, of course you as a parent who intends to send their children to school will be confused with the increasingly expensive education costs. If we do not prepare the education fund from the beginning, then the quickest and easiest step is to borrow here and there, or by mortgaging some of your valuables.
Then how to design the right education fund so that when children need education costs can be met, here is how to design children’s education funds.
How to design an Education Fund
- Prepare a Budget as Early as Possible. You should not delay in preparing children’s education funds. If you just start saving when your child is 10 years old, then you have to pursue a nominal amount that is quite large compared to if you have prepared a budget since the child was 1 year old.
- Set the Amount of Education Budget for Each Child in a Different Post. If you have more than one child, then the education budget should be separated for each child, this is so that each child gets certainty for the future of his education without being neglected by the education costs of his other siblings. The option can follow Education Insurance. Why Education Insurance? This is because to protect children’s education costs from the risk of parental death or the inability of parents to earn a living due to total permanent disability or critical illness.
- Realistic in Planning the Education Budget. It is better to design an education budget that is in accordance with abilities and adjusts to the needs of the Education Fund to be achieved, not too much pressure to put too large a budget which results in other primary needs not being met.
- Set Priority. If the necessities of life are very large and it is difficult to set aside funds for children’s education, this means it is time for you to start setting priorities, try to learn to reduce some expenses that are not too important but spend a lot of funds, such as eating in restaurants, traveling abroad. .
- Budget allocation. Set aside a portion of your income and your partner’s monthly income of at least 10% so that the target of saving or paying for the best insurance can be achieved without having to sacrifice a lot of other needs.
- Ask the insurance agent for an illustration from the insurance company you want to choose, so you know how much premium type of insurance you should pay so that your child can continue his education at school with the quality you want and get all the benefits you need.
Those are some tips from me on how to design the education insurance that you buy for the needs of your sons and daughters