Posted on: 12th November 2021 in Financial Planning
One of the most famous quotes by Benjamin Franklin is the following: “An investment in knowledge pays the best interest.” You probably agree that education is one of the most valuable assets you can give to your children. Education planning is about building a comprehensive strategy that enables your children to get the best education possible whilst remaining in line with your budget capabilities. In our blog, we will explain why education planning should be one of the basic pillars of your larger financial plan.
Paying for your child’s education rarely comes cheap if you want the best for your son or your daughter. Education expenses have risen in the last few years, weighing in on your available budget. Education costs can quickly derail other financial plans you might have.
By investing in a comprehensive education plan when your children are still small, you would be able to reduce costs and save some money in the process. As with all types of financial planning, education planning, including more expensive options, becomes cheaper when you start early.
There is no question that parents want the best for their children. Education and how it helps children have a better future is a conversation topic in every family home. For people who want their children to succeed in life, careful planning is of utmost importance.
An early start gives you the advantage of having the time to evaluate which are the best options in terms of schools, costs etc., and allows you to make the right choice. This is not always easy as delaying choosing your next steps might put you under pressure; sometimes, time pressure leads to mistakes.
The price of getting a good education can be high. According to a report published by PwC, 54% of millennials expressed concern when asked about their ability to repay their student loan debt. The same survey noted that student debt obligations weigh on their economic success, as loans should be repaid on time to avoid heavy penalties.
By planning your child’s education as a parent, you can take some heavy weight off their back, as getting a scholarship or a loan in the future could be a difficult task. Financial advisers note that uncertainty regarding employment or lack of a suitable employment opportunity could make your child’s life harder when becoming an adult, and no parent would like his children to be indebted.
Education planning should be one of the pillars of your comprehensive financial planning. Designing an educational plan for your children, alone or with the help of a qualified adviser, may not be the easiest thing in the world as there are many factors that should be taken into consideration. However, it will surely make your child’s life easier.
One more perk is that by having a plan, you teach your children how to prioritise their expenses and save money instead of spending it without any control. Teaching them basic principles of spending and calculating costs can bring in them a sense of responsibility. This would surely help them in their lives at a later stage.
As a new parent, you should consider saving now so that you can help your children in the future. With life expenses growing and inflation hurting your available budget, this is not always easy. However, there are ways to build a solid financial plan that would help you achieve your family goals.
Education planning has never been so important. Holborn‘s experts can help guide you through the best way to do this. If you would like to get in touch, don’t hesitate to contact us using the form below.
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