The Importance of Preparing Children’s Education Funds Early on The Importance of Preparing Children’s Education Funds Early on, Managing family finances is more difficult than you would think, especially if you already have children.

It must be thorough and prepared from an early age, beginning with the family’s monthly budget, saving for unexpected needs, and preparing cash for children’s education.

Even if your child was born only three months ago, don’t let your guard down when it comes to their educational ambitions. The reason for this is because the school registration line is quite long! Registration for the playgroup, much alone kindergarten or primary school, must be done well in advance.

As a result, parents must begin researching which schools are appropriate for their children, from the educational program to the school costs. Begin early in planning and preparing cash for your children’s education.

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Things to Consider When Creating a Children’s Education Fund

Because you already know how essential it is to start saving for your children’s education as soon as possible, here are some things to consider:

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Gather Information and Make a School Decision

In terms of education, the Ministry of Education and Culture reported more than 5000 schools, both public and private, in Jakarta in 2021. This is a dilemma for parents in selecting the best school for their children.

Several factors may be considered while selecting a school, such as the completeness of school facilities, educational program, and teaching personnel.

As a result, the most important thing to do is to gather as much information as possible about the education system you want for your child, where to get such an education, the difference between the school and other similar schools, how the teaching process is carried out on a daily basis, how much the estimated costs that must be incurred beginning with registration and continuing until he graduates, and so on.

If you already have all of the facts, it is time to decide which school to attend and create a budget.

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Creating a School Budget

After you’ve decided on a school, all that remains is to learn about the prices. One thing to keep in mind is that the expense of schooling will continue to rise year after year. According to, citing the Central Statistics Agency (BPS), inflation might lead the cost of schooling to rise by 10-15% every year.

This may be observed in the education sector, where inflation can reach 3.81%. Furthermore, the educational qualities of each institution might influence tuition and fees.

You may begin creating a budget after you have an estimate of how much money is required. Calculate the cash that must be owned when your child enters school, keeping inflation and other expenditures in mind.

Then, start saving separately so that the monies you’ve set aside for your child’s education aren’t wasted. It will also make managing and monitoring family money easier for you.

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Create a budget for other expenses

You’ll see the development of your child’s skill alongside his growing, right? Whether it’s from art, athletics, or anything else. Extracurricular activities, on the other hand, can help him refine his abilities for future opportunities.’

Extracurricular expenditures, equipment, and supporting facilities, such as notebooks, uniforms, shoes, musical instruments, and so on, should not be overlooked in the budget you create later. There will also be other charges like as private lessons, shuttle fees, and others that must be factored into the budget.

Although the expenses cannot be predicted with precision, start by putting away a few percent of your salary for this one thing, because your child will require these items when he enters school.

In Preparing a Children’s Education Fund, Select the Appropriate Instrument

There are numerous tools available for planning children’s education finances, such as savings and insurance. But what is the distinction between the two?

Education savings is a place to save for your child’s education, which you may do individually or through programs offered by specific financial institutions.

Nonetheless, this approach of saving for children’s education is typically more suited for the short term, between 2 and 5 years. Because when you adopt this strategy, the money you set aside or save in the bank can be utilized in an emergency.

Furthermore, as we noted in the second point, the cost of education in Indonesia is likely to rise dramatically owing to inflation.

Meanwhile, school insurance usually includes a savings or investment component that is done over a longer period of time, which can give a better rate of return and help you anticipate growing tuition expenses. Essentially, education insurance is a method of preparing children’s schooling money as well as developing healthy personal finances.

Author: Irawan
I'm a regular contributor to IRAWAN commander, and in my business blog, my team and I share tales on the experience of starting a business from zero, how it feels to build a startup, and how to scale-up.

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