Lifestyle
Educating your children is one of the most important responsibilities you have as a parent. Their education is closely tied to building a secure future for them and preparing them for a successful career that leads to financial independence. Like any parent, you want to provide the best for your children, and this requires careful financial planning that takes into account all stages of their lives, from the early school years to the final years of university.
With education costs rising continuously, it can sometimes be challenging to provide your child with the quality education they deserve. Since education is an essential need that we can’t abandon or ignore, financial planning becomes more crucial every day, and that’s what we’ll help you with in this article.
Estimate the cost of their education
Before you start planning, you need to know the estimated amount you’re working toward. 2 key factors will affect the cost:
Type of education: What kind of education do you want your children to have? This includes your choice of school, each of which has its own tuition fees, as well as your children’s choice of university major and the university they want to attend.
For example, studying medicine will cost you much more than studying business. And studying computer science at a local university will cost less than studying it in the UK. In such cases, you’ll also need to take into account expenses like travel, accommodation, and more.
Inflation: Tuition fees are continuously rising because of inflation. For example, if you have a 7-year-old daughter who wants to become a doctor when she grows up, you should know that if the cost of medical school is 15,000 JOD today, it will cost more in 2034 when your daughter is 18. That’s why it’s important to factor in both past and expected inflation rates when estimating the cost of education.
Start saving early
From the moment your child’s born, financial responsibilities begin. This is also the best time to start planning for their education. You might think, “It’s still too early,” and yes, you’ve got a few years before they start their educational journey. But the earlier you start saving, the better your chances of building enough over time to cover your children’s education. Use time to your advantage!
Here are 3 steps to help you build the habit of saving for education:
- Set a budget: Creating a monthly budget will help you allocate a portion of your income to education savings. Divide your salary among your needs, and monitor expenses to see where you can cut back if necessary. Aim to set aside 10%–20% of your income for this goal.
- Open a savings account in your child's name: It’s important to keep education savings separate from your other funds to avoid accidental spending. You can open a savings account for children under 18, and the account will stay under your supervision until they reach legal age.
- Future Gold Educational Plan: If you’re looking for a more structured way to save, the Future Gold Educational Plan is designed to help you secure your children’s education while also protecting their future. It combines saving, investing, and insurance in one plan, giving you peace of mind that you’re building a strong foundation for the years ahead.
Regularly review your financial plan
To stay on track, review your financial plan regularly. Assess your progress and consider any new factors that might affect your financial situation. When needed, adjust your investment and savings plans to keep your strategy effective and aligned with your goals.
Explore other options
Explore other options
If you didn’t start planning early and now need to cover school or university tuition, don’t worry. You’ve still got options with Bank al Etihad.
You can turn school or university tuition fees into installments at 0% interest for up to 12 months when using any Bank al Etihad credit card. To learn more about our Easy Payment Plans, click here.
We hope these tips make planning a little easier and give your children the start they deserve, and we wish them every success along the way.
