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5 Mistakes when Planning for Education Funds

Spectr News Theme Isny Dewi R.
12, August 2019
334

Education is one of the important things for kids should have. Because education is very influential for their future. That's why many parents work hard for their kids to get the best education. Unfortunately, education cost in Indonesia is getting more and more expensive. This makes parents have to find solutions in order to continue to pay for their kids education.

There are still many parents in Indonesia who have not realized how important it is to plan for kids education funding early on. Finally, parents get stuck when their kids need a big cost. Many cases occur, parents have to borrow money from neighbors, apply for loans, and sell valuables to pay for their kids education. So that these things will not happen to you, avoid these mistakes in paying for kids education, quoted from www.finansialku.com.

1. Have no Plan
A common mistake is that many parents don’t have any plan. We can say this is a fatal mistake for parents, considering education cost getting more expensive. Even though it sounds silly, it would be better if you already have a plan even if your kid is not yet at school age. So that when the time comes, you will not need to bother to look for funds to send your kids to school.

2. Late Planning
Late planning for kids education costs occurs usually because parents continue to delay it. Never compromise on kids education. If you can do it now, why you have to delay it? In fact, the more often you delay, the more costs you have to pay.

3. Ignoring Price Increase
There are also parents who make the wrong planning of education funds, because they ignore the increase in education cost. Education cost in Indonesia has average increase around 15% - 20% per year. Some schools increase 10% per semester (equivalent to 21% per year). It is important for parents to be aware of the increase in education costs. It is intended that parents are not overwhelmed if the funds are bigger than planned.

4. Invest Less
It's no secret, it takes so many fund to send your kids to college. Therefore, naturally you can save or invest more, not vice versa. In doing calculations, you ideally use assumptions that are realistic or tend to be conservative.

5. Invest without a Plan
You also need to know which products to save or invest in? How many? When is the right time? There are many financial products that are designed to meet your kids education fund needs, ranging from term savings (taka), deposits, education insurance, mutual fund investments and other investment products. In essence, before deciding to invest, make a financial plan first. A financial expert, Robert T. Kiyosaki said that when investing do not focus on the product, but on the strategy.

 

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Isny Dewi R.
Isny Dewi R.
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