Ideally, children's education fund has been planned and allocated since you and your partner are planning to have children. Too soon? Not really. Because the reality is, the cost of education is increasing every year looming. Especially if you plan to send children in school curricula and facilities "plus", an international standard, and then went on to study abroad.
If you currently do not prioritize children's education funds may think could be delayed, because he was only two years-should the review. "Therefore, we want to equip children with the best education, and education costs more expensive," says financial planner Mike Rini Sutikno. So, let's count the cost and trick your toddler education fund.
Admission fee. Paid only once when the child entered a stage of education, such as kindergartens, elementary, junior high, high school. Although only one-time, but the funds expended considerable. Could be a dozen to tens of millions, even hundreds of millions if you count the money base in medical school when the little college someday.
Tuition. Paid regularly every month or every semester for school children. Costs incurred began hundreds of thousands of dollars to millions.
Support costs. Day-to-day expenses to support school activities, such as buying books, uniforms, including pocket money. The amount of budget changes every month, depending on needs.
Extra-curricular costs. To finance a variety of children's activities outside of formal education. For example, paying a foreign language course, dancing, participating school field trips, and others.
Where's the money?
During one month, spending divided into four families: Saving money, debt repayments, pay insurance premiums, and pay living expenses (cost of electricity, plumbing, eating, etc.). Then, go to where the cost of education toddlers?
For a considerable cost, the money base, obtained by way of savings. Should be done early, for example, since the toddler was born or at least the age of one year. A longer period of time will alleviate the amount of money you have to save each month. As for the costs such as tuition fees, support costs and extra curricular expenses, including the cost of living category because of the fluctuating every month.
The amount of each specified expenditure items of income you and your partner each month. Ideally, you set aside 10% - 30% of income to fund children's education savings.
How to achieve it?
Saving! Saving money here does not mean you put money in a bank savings. Money in the savings bank will not meet the required tuition school later in infancy, because interest rates are much lower than the increase in tuition fees. So, there's nothing wrong you look at the rate of tuition inflation annually. As an illustration, the base money entering elementary school today, when one-year-old toddler, for example $ 1,000. When the child entered elementary school 5 years, the base money can go up to $ 2,500! Saving here means raise some funds to meet future needs through a variety of financial instruments such as savings, deposits, mutual funds, stocks, or bonds. Through the financial instruments you can meet your financial targets.