As a parent, you want your child to have the best education possible. But, how do you manage funding for your kid’s higher studies in case of financial difficulties?
Many parents face trouble when it comes to paying school fees and other education-related costs, particularly for college and post-graduate courses. This could be for many reasons, such as lack of savings, not earning sufficient money, or difficulty in putting aside a lump-sum amount at one time.
If you’re in the same boat, here are 5 financial tips that will help you support your child’s school or higher education expenses:
1. Start Saving Early
Plan how much you will need for your kid’s education needs, taking inflation rates into consideration. Ideally, you should set a target and begin saving as much as you can right from the time they are born, or even earlier. If you didn’t do that, start now. You may need to put away a little more every month to reach your goal, but better late than never!
2. Invest in Their Future
Instead of just putting money in traditional fixed deposits and savings accounts, help it grow by making smart investments. Create a dedicated investment portfolio for your child’s education needs, and invest funds regularly. For a balanced portfolio, use low-risk investments such as PPF deposits as well as inflation-adjusted mutual funds and insurance plans that offer higher returns.
3. Explore Education Loans
By the time your child reaches college-going age, they may be able to get a student loan to help pay for higher education expenses. There are a number of finance companies and educational institutions that provide students with financial aid, scholarships or a loan for study. Make sure to explore all the options, especially if your kid is planning to go abroad for further studies.
4. Apply for a Personal Loan
If your child is not eligible for student loans or still in school, use a revolving loan option to help pay for their education. MoneyTap’s personal line of credit provides you with instant loans, which you can use for school or college fees and other expenses at the start of a semester. Repaying these funds before the next semester refills your credit line, so it’s available for use again!
5. Money Management
Starting at an early age, help your child understand how to manage money in a responsible manner. Get them to start saving right from childhood, and later, open a proper bank account. Teach them the difference between debt and credit, the importance of budgeting, and how to keep expenses in control. Encourage them to pitch in for education bills by getting a job early.
If you’re looking for a higher education loan to support your kid’s studies, try MoneyTap’s app-based loans. Our revolving line of credit can help you give your child the opportunities and future they deserve, without constantly worrying about money. Download MoneyTap and apply for a credit line today!