One minute it's the holidays, and before you know it, the school season is in full swing. Giving your child the best education along with the equipment that will help them get through the school year needs financial planning.
It is also a great way to avoid straining your budget when unexpected expenses pop up. Here is a checklist on how you can stay financially prepared.
The tips that are given should not be seen as financial advice, but as a general guideline. It does not take into account your personal financial circumstances; therefore, we encourage you to speak to a financial adviser to help create a financial plan that will work with your financial situation and goals.
Start planning ahead
Avoiding last-minute shopping and choosing to plan around the school year will not only save you time but will save you money. Space out your purchases and sign up for online deals that are budget-friendly. Give yourself breathing room by planning for next year’s school year by making space in your budget to contribute to a savings account each month. Set a target that you will be able to manage. Doing this will come in handy when it is time for shopping for back-to-school items before the end of the year.
Take advantage of your bonus
Educational costs will be one of the biggest expenses any parent will face. With an 8% increase in fees each year for both public and private education, having a financial plan in place will either make or break the managing of these fees. Working school fees into your monthly budget is one way to go about it. However, you can also use your bonus to cover the majority of the fees to allow for more space in your finances. Keep in mind that most schools offer a discount on fees that are paid upfront.
Look into an educational plan
You may still be able to start putting aside funds in an automated education savings account or an endowment if you can do so financially. Always check the interest rate to see if you will be getting more value for your money to help towards your child's education. Having a life insurance policy in place is also crucial to ensure that they will be protected from life's unforeseen circumstances and leaves you with peace of mind knowing that their educational journey will be taken care of no matter what happens to you.
Use the power of online shopping
The year will get busy, and it will become harder to keep track of the latest deals and specials that can be beneficial for your child's education. While having an automated debit created for saving towards the next school year, you can also do this for deals by having alerts and signing up for newsletters that keep you up to date on specials, especially when it comes to big-ticket items such as laptops and uniforms.