Saving for Your Children's Future
you are parent, saving for your children's future is surely one of your
top priorities. Raising children can be quite expensive and you want to
give them the best that you can provide.
Aside from the day to
day expenses, you will also have to prepare for major future expenses
like university, a start-up fund if your child wants to engage in
business in the future or part of the deposit for a home.
Saving for your children's future in a secure way requires discipline on your part and the use of high interest savings.
your child is academically inclined, it is advisable that you give them
a chance in university. A university education, though not a guarantee
of future success, will arm your child with the necessary knowledge and
degree for entry to the ever competitive labour market.
university education would be a considerable expense on your part. It
is estimated that the average tuition for an undergraduate course in
Australia can cost up to $16,500 annually depending on the kind of
course your child chooses to take.
Master's and doctoral
degrees would cost even more. Aside from the tuition, there are other
expenses to consider like board and lodging, transportation,
recreation, clothing, books and other expenses. Starting early using
high interest savings can put you in a good position in funding your
children's university education.
Maybe your child has a flair
for entrepreneurship. You could make it a little easier for him or her
by saving for start-up capital. Sourcing funds, especially for small
start-up business can be difficult. You can give your child a
head-start in the business world by preparing early using high interest
saving accounts to accumulate funds. Even online savings accounts yield
Having a fund for your children's future can also
allow them to purchase their own home earlier with a systematic savings
plan. Having a systematic savings plan can let you take advantage of
the power of compounded interest.
A 7% annual percentage rate
is achievable with most high interest savings accounts. The secret is
to have a regular savings of a fixed amount over a period of years.
interest becomes more powerful the longer you hold your money in a high
interest savings account so starting as early as you can is crucial.
a simple example called the 777 plan. Look for a bank that offers a
high interest savings account, say 7%. Start with $700. Every
fortnight, set aside $77 ($5.50/day) to your savings for your child.
This can be done conveniently with online savings account features.
investment of $77 or roughly the equivalent of a full tank of petrol
every fortnight will give you a final amount of over $108,175.69 if you
stick to your plan for 22 years! You will hardly notice the passage of
time and before you know it, by investing just $5.50 a day, you will
have accumulated a decent amount for your child.
No investment advice provided to you.
This web site is not designed for the purpose of providing
personal financial or investment advice. Information provided
does not take into account your particular investment objectives,
financial situation or investment needs.
You should assess whether the information on this web site
is appropriate to your particular investment objectives, financial
situation and investment needs. You should do this before
making an investment decision on the basis of the information
on this web site. You can either make this assessment yourself
or seek the assistance of any adviser.