Created in Partnership with Edukasyon.ph
Parents, your children’s future might have kept you up at night at some point or another. Where will they go to school? Will they be able to get into a good one? How are we paying for their tuition and their hobbies? Those are all valid questions to ask yourself as you start planning for your family’s future. Besides, what parent doesn’t want to pave the way for their children to have a successful life?
This is why Edukasyon.ph rounds up the top three reasons why an education fund is an investment you should consider. Before you know it, your children will all be adults heading into college, so it is better if you plan ahead on how you will support their dreams. Read on to learn more about how to plan for your child’s education fund in the coming years.
What is an education fund?
An education fund is something that you build. With this fund, you are supporting the future of your kids and enabling them to live the life they deserve. Now, you may ask, what are the other benefits of having an education fund?
Set a disciplined approach to savings so you can worry less about your child’s future.
Knowing your child is set for any future hobbies or career they want to take up gives you security as a parent. Having discipline in saving up for your child’s education is critical in securing their future. Always prioritize and consistently set aside money for their education fund to ensure they will always have access to quality education.
A good backup while you’re saving up for your child’s education.
No matter your preferred savings method, always consider supplementing it with an insurance plan that provides financial support in case of unexpected death, critical sickness, and/or permanent disability of the breadwinner, with potential investment returns. This provides you with a safety net to ensure that no matter what life throws your way, your child’s education will be taken care of.
You can stay ahead of inflation.
Inflation means the increase in the prices of goods and services over a certain period of time. Over time, inflation can reduce the value of your savings, so most financial advisors would suggest diversifying your portfolio to keep up with the pace of inflation. By adding more investment funds with top-ups, you are also increasing the education fund for your children while keeping them financially protected. This means long-term investments in bonds, funds, the stock market, etc. An education fund is a separate basket to put your eggs into, keeping it safe from rising inflation rates.
How do I start investing in an education fund?
Before deciding which path to take, you must talk to a certified financial advisor. They can recommend products that fit your needs and situation and help you understand the importance of saving, managing personal finances, and investing.
There you have it! Hopefully, this article empowered you to choose a better plan for your family's future and your children’s success. If you want to know more about investment opportunities for your family, check out AXA's MyLifeChoice for Education.
