Saving For Your Child’s Education

While it might be a few years before your child is due to start day care or preschool, it’s never too soon to start planning for the future costs of your child’s education.

Depending on what model of education you choose for your child, you’re going to be looking at some significant expenses. And, it’s more than just school fees you should be looking at too. Other costs you should consider are textbooks and stationary, school uniforms, transport to and from school, sporting equipment and trips, music – the list goes on!

If you go down the path of private education, your annual education expenses will be significantly higher than government education. A state education still has costs associated with it though. According to research from the Australian Scholarships Group (ASG), for a child born in 2016 the total cost of a private education could cost more than $468,000. The cost to educate the same child in the government school system could cost more than $66,000.

The key to getting a head start on these future expenses is to start planning early for your child’s education. ASG understand this huge responsibility parent’s face, and through their education funds, make this important task a little easier.

ASG’s education funds offer a proactive and proven way to offset these costs. The secret is to be disciplined and start putting away money early into a fund that you can’t (or don’t) access. Making regular contributions towards the cost of your child’s education will give you peace of mind now, and greater opportunities to choose the best education for your child in the future.

When your child is very young you can start an account where your weekly deposit is around $10 a week. You can watch it grow and mature and become a nice little nest egg for when they begin their education. It’s a way to help you plan and save for your child’s education without you feeling the pinch in your weekly budget.

Depending on your financial circumstances there are different packages or types of accounts to choose from that can work with your individual family budget. Often grandparents or extended family want to contribute to the cost of education so setting up this kind of account or savings plan is a great way for them to contribute what they are comfortable with, knowing that it will make a significant difference to the educational opportunities or the quality of education available to their grandchild.

ASG are experts in the education arena so they can help you navigate the opportunities that may be available, offer career advice to your children and offer exclusive member benefits.

Even if you never access some of these great benefits, the prospect of having a nest egg specifically for your children’s education will bring real peace of mind to parents who are hoping to give their children the best start in life.

To find out more, visit ASG.

 

[1] 2016 ASG Planning for Education Index. Metropolitan Australia estimated costs for private preschool through to secondary school for a child born in 2016. www.asg.com.au/edcosts
[1] 2016 ASG Planning for Education Index. Metropolitan Australia estimated costs for government preschool through to secondary school for a child born in 2016. www.asg.com.au/edcosts
Remember that making a financial investment is an important decision. Please read the Product Disclosure Statement (PDS) for the relevant education fund to determine if the fund is right for you – available at asg.com.au/pds or call 131 ASG (131 274) and we will forward a copy to you.

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