The only time nothing better than when a newborn child to start saving children’s education fund is when we first got married and decided to have a child. If that does not happen, let’s get serious and look at ways to start saving our children’s education fund.
Although you do not set aside money for a college fund, your child can stay in college, but he will have a limited choice (except if your child has a very good value). You can give a lot of choice with a small contribution to the college fund from time to time. If you want to make sure your child can get into any college he wants in this world, prepare yourself.
For every ten million rupiah that you want to help your child pay for college at the birthday-18, you’ll need to save approximately Rp29.000 / month (assuming every 5% interest to be back, where you can obtained in many mutual funds that invest in corporate media futures). Keep in mind, that inflation in the cost of tuition has gone far broader inflation rate for the last two generations. It is smarter to plan on the changes.
It is difficult to know how much money you need, but close to the upper limit, it makes sense if you wish or thought to pay around 30 million for the cost of college education when your child is 18 years old, you are required to save around 30 X Rp29.000 or equal to about Rp870.000 / month.
You may, you should plan for your child to stay at home and follow the education college near your home by eliminating the cost of boarding rooms and other accommodation then you can reduce spending drastically. Depending on the school and the location of your home area, you might be able to reduce the cost of tuition for four years of tuition, books, and other costs of about 50 million. Where do you need to save only 5X Rp 29,000 = approximately Rp145.000 / month.
If you can not save as much as the amount, menabunglah you can. Even if you can only save Rp58.000 / month for a period of 18 years will generate savings of approximately Rp125.000.000. If you combine the fund with your children who will live in the house, need based college scholarships, part-time work, you can see that you may be able to fund your child’s college tuition without having to apply for a loan of money. Do not fall into the trap of assuming that you can and will borrow any funds to finance your child’s college when that day comes. However the debt burden may weigh anyone.
If you need to borrow a little to close the funding gap between savings, or other income sources (grants, scholarships, work part-time and during holidays) with expenses for college, it was reasonable. Borrow 10 to 20 percent of all tuition fees should not damage the pension fund or your child’s life. Thinking about college loans and as a last alternative if there is no other way. Do not let college loans into a way to pay for your college.
By starting a savings plan when you were little, you can give your child a better choice for college when he was 18 years old.