Whenever you welcome a new member into the family, it is a huge responsibility for you. Among all other duties, the financial stability is one of the most important. You need to plan and manage your finances way ahead to ensure a proper family planning. As soon as your child is born, you need to have a financial roadmap, well planned and organized.
Kids grow faster than you think. You might think that there is a lot of time to plan for their primary education and then their college, but literally ‘time flies’. So, you need to cautious and start much ahead in time. Even before they start crawling, you probably need to start establishing their college fund.
Primary, Secondary and Higher education lays the foundation of your child’s success in the life ahead, so you never want to take any chances or leave any opportunity to provide the best of education for them. With increasing inflation and expenses, it is highly important to plan today to ensure a secure future for your child tomorrow.
Some of the basic reasons as to why it is important to have your child’s college fund ready early in life are being discussed below:
Dynamic Economic Scenario:
The ever changing economic scenario in the world is one of the major reasons. Inflation, market fluctuation, increasing value of money all this contributes towards the higher expenses for services, which are expected to rise further in the future. Educational expenses, college fee and others related costs are always on the rise with every passing year. So, you need to start saving today.
Planning For Emergencies:
Due to some unforeseen reason, there might be a mishap in the family like death or sudden calamity, when the burden of expenses can be too much for someone else. A college fund in place might already help to ease the burden.
The Choice Of Education:
As you start saving a little at a time, by the time they reach the age of getting into college, they can have their own choice of career in choosing the right college and stream of education. They can apply to some of the best colleges, which offer their choice of subjects.
There can be sudden medical expenses in the family, so saving might become difficult. But, if you have already started saving, it might not be a heavy burden on you at the time of college admissions.
Assurance For The Future:
An early fund is always an assurance and security for the future. It makes you stress-free for tomorrow and lets you concentrate on your expenses today. It feels a lot more comfortable when you know you have your child’s future, secured.
Our lives are full of uncertainty, so we need to have the contingency plans in place. Even if something extreme happens to the bread earner of a family, his/her planned finances and savings should be able to cater for the proper education of the child, so that he/she can succeed and earn better. A college fund is not only about saving money, but rather it is an assurance and investment for your child’s secured future and education. So, plan and prioritize well in time to mitigate financial risks for both yourself and your child.