Every parent tries to give the best to their children. Especially when it comes to getting a quality education. Today, more and more people are considering the possibility of paid education, whether it is kindergarten, school or university.
When planning a budget for the education of children, you should first set out from your available financial means. But it is equally important to understand where and when the child will study. Someone plans to pay only for higher education, someone for a paid kindergarten or school, and someone at the same time. Based on these preferences, it is useful to determine the final amount, taking into account possible inflation. And it is necessary to focus on this already when creating savings.
It is better to start saving for kindergarten earlier, from the birth of the child or even during pregnancy. That’s a relatively short period of time, up to 2.5 years, so we’ll most likely be talking about immediate conservative tools: deposit and savings accounts.
The required amount should be divided by the number of months before the age at which you want to send the child to kindergarten. Suppose a total of 100 thousand rubles will be needed to educate a child in kindergarten. Parents have 2.5 years to build up the required amount. We divide 100 thousand rubles into 30 months and we get 3,333 rubles. Parents will need to save that much each month.
If we want to save money for a school, we must understand the duration of education: will it be all 11 grades or will it be just the last grade, for example? By the child’s seventh birthday, it is quite possible to raise enough capital to cover all or at least some of the education.
For example, training in a private gym will cost 3 million rubles for all 11 classes. We divide this amount by 7 years – 84 months. All this time, we save 36 thousand rubles per person, until the child reaches school age.
University is more interesting. On the one hand, we do not yet know how our children will be when they are born, and which professions they will choose. Choosing the right university is difficult. The choice is huge. As a rule, the cost of education differs depending on the chosen university and specialization. But the average is about 180 thousand rubles per year. It is interesting that, according to the latest research by us, parents estimate the annual training course of children in a higher education institution in the same amount – 180 thousand rubles.
In any case, the figures are already much more serious compared to schools and kindergartens, but there is also more time to build up such capital. This means that moderate bond products can be added to conservative financial instruments in the form of endowment life insurance. Securities allow you to earn above-inflation returns of up to 15% per year.
It is definitely not worth buying real estate as the liquidity is now much lower and a situation may arise where it will be difficult to sell quickly if necessary.
What if you save money for everything at once?
If we are talking about several years, then stocks, bonds, deposits, savings accounts help save. Cumulative life insurance with monthly or quarterly installments is suitable for longer periods. A big plus of such programs is the possibility of life insurance as well as the creation of savings: the insurance company will pay or continue to pay if one of the insurance risks materializes. for you. This is a guarantee that the child will receive the amount that his parents plan to save, regardless of living conditions.
If there is a desire and opportunity to create savings for a kindergarten, school and university, then three piggy banks will be needed at once. That’s why we don’t mix finances and switch from one to the other. In addition, all three piggy banks will differ in terms of savings.
However, it would be more appropriate to allocate 15-20% of your income to education so that this financial burden does not impose too much on the family budget. Then the remaining amount will be enough not only for the sake of the child and his future, but also to live for yourself. Children will be happier when they see happy parents.