University education in Australia is expensive. The earlier parents plan for their children’s education, the easier it will be for them to give their support.
No one knows their fate in the future. A slight change in health and financial circumstances can mess up your children’s future education. Therefore, financial planning is vital.
The following tips will help families comfortably finance their children’s education:
1. How much money is needed?
Figure out what kind of school you want your children to attend. Private or public? Do you want them to go to university?
Public schools are cheaper compared to private schools. Universities too are expensive. However, if your child will be eligible for scholarships and government-backed student grants or loans, all you might need to do buy are books.
2. Create a savings plan.
Your children will need you to help them pay for their university school fees. It is never too early to start saving for your children’s education.
The education fund that you choose should be determined by:
- The amount of fees you expect to pay
- How often you plan to contribute
- The type of education
- Criteria for accessing the funds
3. Take out a loan.
Many university students depend on government loans to pay their school fees. Students who qualify for government loans usually are not expected to pay them back until they get a well-paying job.
Research various loan schemes and settle for one that suits you the best.
4. Apply for scholarships.
Scholarships help students cover part of their education costs. A student can get a scholarship through avenues like commonwealth, state government, individuals, charitable organisations and community organisations.
Most scholarships have set qualifications that students are expected to meet for them to be eligible. Go through them and apply for those that you qualify.
5. Students can work.
Working as you study might sound like one of the hardest things you can do. However, it gives students some extra money that can be spent on entertainment or even clearing part of their tuition fees.
A student can opt for evening classes or an online course to be able to work and still study.
6. Parents use retirement plans.
Most university students depend on their parents to help pay their school fees. However, by the time many children get to the university, their parents are already retired and not working.
So where does the money come from? Parents with retirement plans can use the funds to settle their children’s school expenses.
7. Cash in inheritances.
It is essential as a parent to ensure that your children will use inheritance wisely. Set up inheritances such that your children will only be able to access them when they reach a certain age. Maybe when they get to university?
They could use the inheritance to benefit them in school. Seek help from a lawyer to help you understand the inheritance terms for your children.
Avoid inheritance loans and advances since they come with high rates that might risk your children’s future.
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