University-bound children’s parents can expect to pay at least a half to a third of the cost of their children’s education with their current income, savings, and loans. Therefore, parents should start saving for their children’s future sooner rather than later, even on the day that your little one is born. The sooner you start saving, the better off you will be in the end.
Use these tips for easy saving:
- Start saving the day your baby is born and save as much as you can. Compounding interest will also make your savings grow.
- Save money on a consistent basis rather than on a random schedule.
- Consider setting up an automatic payroll deduction or have your bank automatically move money from your chequing account to a university savings account.
- Establish a savings goal to measure how well you are saving and modify that goal as your salary increases.
- Ask other relatives to contribute to the savings account in lieu of gifts.
- Save windfalls such as inheritances, income tax refunds or bonuses. Don’t rush out to spend this fast cash.
- Increase the amount you save by five per cent each year to keep up with the university tuition inflation rate.
- Place the money you once used for expenses that are no longer here into the savings account.
- Cut down on normal living expenses and redirect that money to your savings account.
- Teach your children about saving by getting them involved in the financial preparation for their education.
Get your finances in your order while you save for your children. Make sure to pay off your credit cards, maintain a reserve of six months’ worth of pay in case of a job loss and save for retirement so that you are just as financially cushioned as your child’s university fund.
To help get your children’s education savings started give Scrivens a call at 613-236-9101. We will guide you on the best path to achieving your financial and familial goals!