6 Strategies to Save Money For Children’s Education

Although many countries have implemented free education to the people, India is among countries that the cost of education is quite expensive. The cost of education is often a scourge for the parents because often throttled and made the income demolished.

No wonder many families who long ago began to think how to pay for their children to higher education. Even thought this is done before the child is born or still toddlers. In any case there must be a solution to ensure that the child can get a decent education while families can still stable economy.

Here are some examples of financial and investment products that are usually done by parents. Who knows you can be inspired after reading:

1. Savings Conventional

How to deposit these funds include popular among people, especially those who do not want complicated. Lots of savings products that can be selected with the excess that is quite tempting. For example, interest and health insurance facilities. In some savings banks are also facilities for your child. So it will inspire you to be more active to set aside some of the money income.

In addition to easier, saving is considered to provide certainty, security and may be withdrawn at any time needed. You just discipline yourself to set aside some money into savings. The principle of saving indeed it is a “little-by-little too long so the hill”. Disadvantages of this investment is the activity stops when you die. There is no guarantee that money for education savings will grow.

2. Education Savings

These savings provide life insurance facilities, so if you have no permanent education fund target will be achieved. In addition to life insurance facilities, these savings also have interest mengoda facilities and health insurance facilities with an additional fee. Usually education savings accounts often be derived from your personal account at the same bank and auto-debit system. You simply open an education savings in banks that have such facilities and carry ID cards, book your savings, plus the baby’s birth certificate.

For example, you plan to save $ 1 million per month for saving children’s education . So every month the bank will automatically deduct $ 1 million from your private account to put a child’s education savings account until the period of time you’ve specified. If you die, the bank will use life insurance to cover all unpaid installment savings.

Oh yes, what if you are not able to repay these savings because there are economic problems? Quiet, usually the money you’ve civil during this time to re-enter your primary savings. Of course, with a number of pieces for the administration.

3. Insurance Education

Many think that an education savings and insurance are the same education. That thought was not entirely wrong, because at first glance is the same even though there are some significant differences.

Education savings insurance:

Education insurance issued by an insurance company, while the education savings issued by the bank.

Although the premium paid has been completed, a new educational insurance can be disbursed if the maturity or you die, while education savings can be withdrawn when you finish saving obligation or no longer able to pay the mortgage.

Pieces insurers to withdraw funds prematurely greater education than education savings.
Despite the gains or reciprocal insurance greater education, the process is more complicated than an education savings.

For example, you take out insurance with a premium education for 15 years, assuming the insurance will be liquid three times that when your children complete primary school, junior high school graduation and college entrance. Well beyond the three things, that insurance will not be liquid, except when you die.

4. Mutual Fund Investing

For the novice about investing, you can try to do small-scale investments by mutual funds that small risk but the benefits passable.

Of all mutual funds, you might try a conventional mutual fund-type mixture that is invested into various investment funds either high or low risk for example to bonds, deposits and shares. You benefit from the long investment of three to five years. This product will help you prepare for the children education fund.

5. Deposit

If by chance you have a certain amount of money from the business, then you can deposit the money for children’s education expenses. This method is considered fairly accurate because deposits can not be disbursed as you like and the flowers pretty good compared to a conventional savings.

Choose deposit products with maturities that you need or corresponding to the period when your child needs for school fees.

6. Gold Investment

Since time immemorial our ancestors keep the gold that could be withdrawn when needed. This method could be an adaptation to make sure your baby get a savings fund for their future education.

You can save the gold because the price is relatively stable and easy to sell. Try to keep the gold in the form of bars that have high levels of 99 percent.