With tuition fees seemingly rising all the time, further education can be expensive. However, investing in your child’s future is one of the greatest investments you will ever make. While you may feel like you will never be able to afford the extortionate rates that are associated with college and university, all it requires is some careful planning. Keeping that in mind, read on for some top tips on education fees planning to ensure that you give your child the platform to excel in their adult life.
Tips on saving for your child’s education fee planning:
- Start early – The sooner you save, the better. You will find it a lot easier and manageable to save if you do this while your child is closer to primary school age than they are university age. If you only give yourself a few years to save for your child’s education, you are giving yourself a mountain to climb. However, if you start early, you can save in more manageable amounts, and you give any investments the opportunity to grow.
- Work out how much you can save – It is important to be realistic and work out how much money you can actually save. If you set your expectations too high, you will only find yourself getting stressed as you fail to reach them. Not only do you need to work out how much you can save, but your education plan should include how much you will likely need as well. Therefore, you need to research everything from university fees to the cost of textbooks.
- Look for education funds – One option you may want to consider is opening an education fund. Before investing in an education fund, however, there are some key aspects you need to consider. This includes the fees you will be charged, what access you will have to the funds, how often you need to contribute, your investment options, as well as fund purchases, i.e. what you can use the savings for.
- Open a tax-free savings account – When saving for your child’s future, you should save via an ISA (Individual Savings Account), as the returns are tax-free. With this type of account, you get a yearly limit on investments, which means that all returns up to a certain amount – £10,680 in the UK – are tax-free.
- Look into scholarships and bursaries – You may be eligible for a bursary, which a monetary award is granted to those that are not able to pay the full tuition fees. Scholarships are also available for students that excel while in high school. You will need to consider applying for these.
- Look for tax breaks – Finally, make sure you look for any tax breaks. You may discover that you can claim tax exemptions for the tuition fees paid, which will lessen the burden significantly.
If you follow the six tips that have been provided, you will certainly find it much easier to save for your child’s future. However, it can often be a bit difficult to know where to start and how to put the pieces of advice that have been mentioned into action. But, don’t fret, as that is where we at Taylor Brunswick Group come into play. Taylor Brunswick has an exceptional amount of experience in education fees planning, and we can help you to put together a plan that is the most affordable for your financial situation while ensuring you meet your goals for your child’s education.
Managing Partner in Taylor Brunswick Group. A Hong Kong-based wealth-management firm that offers expert wealth management advice that will increase the potential to maximize growth for any individual or businesses.