Children are a great joy for us, but on the other hand it is also a huge financial expense. Of course, we do not pay much attention to it, but when we look at our bank statements, we can certainly notice that our kids cost us a lot. As you can easily guess, the most money we spend on children when they go to school, and especially to study. Therefore, more and more parents decide to create a special fund for their child, on which they will collect funds that will be used in the future during their studies.
How much to save on our children’s education
Surely many people wonder how much to save and when saving to start. The answer to this second question is quite simple – the sooner the better. However, the amount that should be postponed depends on many factors. When we decide to save, we need to realize what amount we want to “collect”. If we assume that the monthly cost associated with studying will amount to about PLN 1000, we will need about PLN 9,000 a year (students have 3 months of vacation). If the studies are to last 5 years, we must have PLN 45,000. And for that amount we should try. Our next assumption will be that our child will go to university at the age of 19. So if we start saving for his education as soon as he is born, we have 228 months for it. It follows that we have to save almost PLN 200 each month. It is definitely a large amount and not everyone can afford it. We can lower it, but then we should put away the money our child receives for Baptisms, birthdays, communions, etc. Certainly in the congregation sufficient amount of money for studies for our children will help us profits that will be offered to us by institutions to which we will “put” money . However, if we choose a careful way to multiply money for children, they will not be too high and we can say that they will cover the costs of inflation. However, if we want to obtain higher profits, we must take into account possible losses that we will achieve at the end of the investment.
Of course, the given example is only demonstrative, because firstly, the costs of studies can go higher for someone, and secondly, not everyone decides to save immediately after the birth of the child. Generally speaking, we can say that we should put off as much as we can afford, because in the future every penny will be worth its weight in gold.
Where to invest money for our children’s education
If we have decided to put money away for the education of our children, we should decide whether we will do it alone or entrust our money to professionals. In the first case, we usually save very safe by creating term deposits or a savings account. We certainly will not get great profits here, but we are sure that we will get our money back. Banks do not have some great savings programs for children, but it must be admitted that after the appearance of the 500+ program in Poland, the situation is slightly improving in this regard. So you can find pretty cool savings programs, thanks to which you can save money.
We can also entrust our money to financial specialists who will offer us a choice of many savings and investment programs. Some will be more risky other less, so we have a choice of different strategies for saving. However, we must realize that usually in such a case we will be charged fees, which will slightly lower the profits (if they occur).
They decide on systematic saving, we have to be very consistent and we can not do this “leave”. Of course, there are different situations in life and sometimes we just do not have money in our home budget to pay money for our child’s future. However, we should make up for these deficiencies as quickly as possible, so that the account always agrees.