As a parent, you want to give your child the best possible education. However, paying for education can be a daunting task, especially when the cost of tuition, books, and other related expenses continues to rise. The good news is that there are steps you can take to prepare for the cost of education, and one of the best ways is by saving to ensure they have the opportunities they need to succeed.
Here is a quick guide for parents on how to save for their child’s education:
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Start early: The earlier you start saving for your child’s education, the more time you will have to save and benefit from compound interests to maximize your savings. For example, if you start saving when your child is born, you will have 18 years to save for their university education. There are available young savers accounts that can be used such as Ecobank’s Junior Savers account.
Set a goal: Before you begin saving for your child’s education, you must first calculate how much you need to save. You can estimate the cost of tuition, books, and other relevant expenses using for example an online calculator, and then establish a target based on that estimate.
Make saving a priority: Saving for your child’s education should be a priority in your budget. Consider setting aside a portion of your income each month for education savings, and look for ways to reduce your expenses so you can put more money into savings. You can sign up for an Edusave policy that you’re comfortable with.
Get your child involved: Encouraging your child to contribute to their education savings can help them understand the value of education and the importance of saving. You can encourage your child to contribute by matching their contributions or setting up a part-time job for them to earn money for their education.
Consider other sources of funding: In addition to savings, there are other sources of funding available to help pay for your child’s education. These include scholarships, grants, and student loans. Be sure to research all of your options and understand the terms and conditions of each before making a decision. Recently, Ecobank launched an Edusave Loan campaign to assist parents with their children’s school fees.
Review your savings plan regularly: It is important to review your savings plan regularly to ensure that you are on track to meet your target. Consider adjusting your savings plan if necessary, and make changes as your financial situation changes.
In summary, saving for your child’s education is an important goal that requires planning and discipline. By starting early, setting a goal, choosing the right savings vehicle, making saving a priority, getting your child involved, considering other sources of funding, and reviewing your savings plan regularly, you can help ensure that your child has access to the education they deserve.
The writer, Mercy Amala Wangusa is the Head of Products Ecobank Uganda
