When it comes to your child’s education you want to provide them with every opportunity, however putting your child through primary and secondary school and then through college can cost a significant sum of money. If you are one of the many families who see saving for their children’s education as an important financial planning objective, here are 6 tips on how you can put a plan in place to do so.
- Start with the end in mind. Do your research and calculate how much you need to cover the cost of your child’s education. Generally the older the child gets, the more expensive the annual costs can become.
- Start early. The ideal would be to start as soon as your child is born but if your child is already in school then start putting something aside now for the next stage in their education path. The longer you have to save, the greater potential fund you can accumulate. There are a number of affordable, flexible investment vehicles on the market .The real magic is to decide on a disciplined approach to the challenge and set up a monthly debit order to assist you with the discipline and frequency of saving.
- Gifts from family. Encourage grandparents, godparents and other family members to add their contribution to the plan, in place of gifts at Christmas, birthdays and other events. Your child can receive gifts of up to €3,000 from any person, in any calendar year, without having to pay Capital Acquisitions Tax. This means that several people can make gifts to your child and the first €3,000 from each person is exempt from Capital Acquisitions Tax.
- Consider Investing. Putting money in the bank is one way of savings, but current interest rates might not achieve the sort of growth that your savings plan might require. Your financial advisor can help you select an investment that is suitable for you.
- Teach your child about money – Children need to be taught the value of money and the necessity to save for eventualities. Involve them in the finances and show them what you are doing for them.
- Take advice and regularly evaluate your progress. Involve Con Friel & Company in all aspects of your educational savings on a yearly basis.