Early Childhood Education Planning Tips

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Child Education Plans
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Early Childhood Education Planning Tips
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• While no child is alike and each family is
  unique, a common tread run deep in the heart of
  every home - the desire of parent is to give
  their children the BEST education possible and
  see them grow into their full potential. However,
  life is full of unplanned surprise and the path
  to achieving this desire may be a convoluted one.
  That's where a sound investment strategy comes
  in. With flexible planning and a suite of
  investment options that are available, you may
  help put your child on the journey to a valuable
  college degree. Here are a few TIPS that may help
  kick-start you planning
• 1. CREATE A FINANCIAL PLAN WITH AN END IN MIND.
• First, make an estimate of the costs that will go
  into your Child Education Plans . Your cost
  should take into account inflation over the
  investment or saving period. With the estimate as
  a guide, start piecing together your investment
  plan. There are many education planning option,
  each with its own risks and benefits, which you
  may use alone or simultaneously to achieve your
  goals

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• a. AN EDUCATION SAVING PLAN is a good place to
  start as it aims to offer payout when your child
  enters college. Some education savings plan may
  also provide protection benefits to the child and
  or parent.
• b. PROPERTY may provide rental yields and capital
  appreciation to fund your child's tertiary
  education. Rental yields may be used to top up
  your child's education fund savings or pay for
  your child's tuition. Should the value of your
  properties appreciate, it may be sold to obtain
  capital gains. Investing in property has its
  risks too as the property market may fluctuate in
  the future and you may not be able to get the
  selling price you hope for.
• c. UNIT TRUSTS and STRUCTURED INVESTMENTS can be
  added to your investment plan, if they fit your
  risk profile, time frame and target goal for your
  child's education.

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• d. AN INVESTMENT LINKED PLAN can be tailor-made
  to grow your wealth with the flexibility to
  choose the type of funds suitable to your risk
  profile and goals. Your child may be nominated to
  receive protection benefits, should the
  unforeseen happen to you. Usually, you would have
  the option to make regular contribution or a
  single contribution in line with your financial
  standing.
• 2. SET UP AN AUTOMATIC SYSTEM TO INVEST REGULARLY
• Set in motion action plan that makes savings or
  investing automatic. Many savings, investment
  linked plan and unit trust funds often regular
  monthly, quarterly, half-annually or annual
  contributions option. By investing regularly, you
  will also benefit from Dollar Cost Averaging
  (DCA) which average out the high and lows of an
  investment and possibly lower the total average
  cost per share of the investment.

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• 3. REVIEW THE PLAN
• Regular reviews of the plan will help you stay on
  track with your target goals. Review it at least
  annually and with every major life change such as
  new child, career advancement or move to a bigger
  house. Find ways to top up if it is not up to
  speed in reaching your investment goal.
• 4. TOP UP ANNUALLY or WHEN YOU CAN
• You could consider increasing the amount of
  contribution annually or top up your regular
  contributions when your income increase such as
  when you receive a bonus or get a pay rise, in
  order to meet your target earlier or achieve an
  even large fund.
• 5. NO DIPPING INTO THE FUNDS
• Choose a plan that locks in your funds for your
  children's education till they are ready to leave
  for college. If it is easy to cash out the
  education fund, chances are you may be tempted to
  use the money for other emergencies or needs that
  may crop up in life.

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• 6. ENCOURAGE CONTRIBUTION FROM FAMILY MEMBERS
• Encourage grandparents or relatives who shower
  your children with gifts to consider opting for a
  cash contribution towards their education fund
  instead.
• 7. MAKE IT A TEAM EFFORT
• Get your children involved in saving for their
  education. When you are reviewing your
  investments for their education fund, talk to
  them about it and make them aware if the
  challenges and commitment you face in saving for
  your Child Education Plans. If possible, let them
  contribute a small portion of their allowance to
  their education fund too. And before they leave
  for university help them develop good money
  management habits to help them live within their
  means.

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