Setting your child up for life starts with small steps. One of these important steps is making sure that your child will have access to quality education without placing a strain on you financially. Not sure where to start? Here are reliable education plans you can start investing in.
Savings account with good compound interest
Start saving towards your child’s education as soon as you can. Furthermore, make sure it is in an account that has a good interest rate to make sure that it gains in value. Investing in an account with compound interest can boost your savings to be prepared to cover the costs that come with them being in high school or even university. Make sure you speak to a financial planner to find ways to keep saving without straining you.
Unit trust funds
Unit trusts are also one of the popular ways in which parents choose to save towards education fees. However, it is vital to have a clear understanding on the benefits and conditions that come with a unit trust fund. Unit trust funds tend to offer a simple and generally cost-efficient way to get exposure to equities. This is beneficial towards long-term financial goals. Speaking to a qualified asset manager or financial planner can help you find a suitable solution for you.
Tax free savings
Putting aside money in the form of using a tax-free savings account or unit trust to build more financially in a set period is also an alternative to consider. Tax-free saving accounts allow you to earn interest on the amount you put aside without having to pay tax when you do decide to withdraw it at the end of the period that is set on your account. However, unit trusts can also be beneficial for parents who want to invest an amount that they can draw upon whenever they need to. It is vital to assess both the features along with terms and conditions that come with the options to get the best option that is beneficial for your financial goals.
Life insurance
Make sure that all your bases are covered when it comes to making sure that your plans to give your child quality education will be taken care of even when you are no longer around to do so. You can use your life insurance payout to ensure that all your child's educational needs are covered, giving you peace of mind knowing that they will be provided for.
