Save & invest their future: tackling rise in child's education cost

As a parent, ensuring the financial stability of your child's future is one of your most important responsibilities. As the cost of living continues to rise, saving and investing for your child's future have become more critical than ever. The earlier you start saving and investing, the more time you have to grow your money and benefit from compounding interest. In this article, we will provide you with practical advice and actionable tips to help you save and invest for your child's future, whether it's for their education, a down payment on a home, or a nest egg for their retirement. From setting up a savings plan to exploring investment options, we'll cover key saving tips to secure your child's financial future. So, let's get started on this journey towards financial security for your child.

1. Automate transfers for savings

Consistency is key when it comes to saving, and you can do just that by automating funds directly into your savings account. The hassle of manually segregating your salary each month can be troublesome and may cause you to miss out on saving opportunities. By setting up automatic transfers to your child’s savings account, you can turn your attention to other financial responsibilities and take care of your child’s future. This will help you stay on track with your savings goals and make it easier to build up a substantial savings fund over time.

2. Prioritise and budget accordingly

To avoid unnecessary expenses, it's important to establish a clear inventory for your family's needs, whether it be clothing, food, or other essentials. If you turn your focus to only prioritising needs instead of wants, you leave room for a more consistent saving regime. In fact, there is evidence of this methodology working in an experimental setting. According to a study conducted by the Journal of Consumer Research in 2014, 81 participants were given a survey on their spending habits. There were two groups established: one that only spent on needs, while the other group had the freedom to spend on their wants. The need-focused group saved an average of 22% more in comparison to the want group, which can go a long way when it comes to saving1.

Additionally, if your home is cluttered with things, you don't actually use, get rid of them through garage sales or ecommerce sites. By having the essentials around, you have a clear idea of the things you need when you need them.

3. Settle debts

A key step that can ensure smooth savings for parents is settling any outstanding debts early on. These debts may include mortgages, loans, and any outstanding credit card balances. Listed below are some foreseen benefits that you will gain:

Improves your credit score, which can help you qualify for better interest rates on loans and credit cards in the future.
If you pay off your debts, you can reduce or eliminate interest payments, freeing up more funds for savings.
Reduce your financial stress, allowing you to focus on saving and investing for your child's future.

4. Purchase Great Multi-Gen Wealth

When it comes to securing your child's financial future, purchasing Great Eastern’s Multi Gen Wealth plan can have a significant impact by providing you with peace of mind while safeguarding your child’s finances. It's important to consider the current state of the economy and select a plan that meets your needs and budget. Discuss the plan with your child so that they are aware of the financial situation and can be prepared for any unexpected events. With GREAT Multi-Gen Wealth; parents can accumulate financial wealth and transfer the wealth across generations. The maturity benefits can serve as a foundation for future endeavours such as buying a home, travelling or furthering studies. It's important to regularly review and update your insurance plan to ensure that it continues to meet your family's needs over time.

 
References:
1. Laran, J., Janiszewski, C., & Salerno, A. (2014). The role of need for uniqueness in the effectiveness of the snob appeal influence tactic. Journal of Consumer Research, 40(3), 575-590. doi: 10.1086/672302