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How To Afford Your Child’s Education

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From the moment you have a child, you’re spending money. Funding their food, clothing, entertainment, rent, utilities – the list goes on – isn’t cheap and you have to ensure that you are financially ready for children as much as you may be emotionally ready. Funding their education is one of the hottest topics in finance because of the costs of education skyrocketing. Finding room in your budget for their college education isn’t the easiest thing to do, but the good news is that you can put together a plan while they’re babies so that by the time that they are 18, they have a way to fall back and get the education that they deserve.

Forward planning is the first thing that you need when you are affording your children’s education and if you’re worried about things like bankruptcy and debt, get the experts at Wyolaw Law Firm to help you out before you start planning college funds. There are so many ways that you can save for school and we’ve got some of the best tips that you need below to make sure that affording your child’s education is realistic for you.

  1. Open a college account. There are so many institutions that enable you to open a college account and start accumulating money from their childhood. You can add money in automatically every month and the interest that accrues over time can ensure that you have enough money for a really good college.
  2. Decide on how many children you’ll have. You could want a brood of five children, but it’s not always feasible to do that. As lovely as it would be, children need to be raised in an environment where they can thrive and they can’t always do that when there are kids! So, you need to decide early how many children you’ll have so that you can make the best possible decision about whether college is a realistic thing for your family. Five children may not be affordable for college, but two might!
  3. Use investment bonds. Investment bonds are available from a range of companies and they are a really popular choice for those who are looking for education funding. You can add a range of investment options, including shares, interest and property rates and as long as the money remains invested for a period of ten years, the investment provider pays the tax on it.
  4. Set up a family trust. This type of tax structure allows you to hand out an investment income to family members, allowing you to take advantage of lower tax rates. It’s the most complex option and it has to be approached with the advice of others!

The choice you make will depend on what’s best for your family but the point here is that you could have your children’s education covered. If you want this to work out, you need to start early while they are young and build on that! It’ll take time to get together a good amount of cash for your child’s education.