Financial planning for children’s education requires a long term financial commitment. It is recommended that you start planning for your child’s future needs as soon when he/she is born. Majority of the funds that you are saving for is used for the children’s university education in the future therefore it leaves you with roughly two decades to create the ideal sum for your child’s needs.
As financial planning is a long term commitment, it is advisable that you set aside both a comfortable and affordable sum of money for this long term goal. Due to increasing inflation risk, it is also important to take note of the future costs of education.
While saving and investment towards your goals you should implement the concept of buildup. Building up your portfolio each year allows you to start with small baby steps when your income is small, to bigger steps as your salary income grows.
It is always important to insure yourself during the course of your educational planning. This will help to cover any potential loss of income should a demise happen. Your coverage should be at least 5 -10 times your current annual income. With a term insurance plan, you can achieve this coverage requirement and ensure financial safety for your family even in death.