5 Best Investment Plan For Child Education

5 Best Investment Plan For Child Education

Property Investment  

As a parent, having the best investment plan for child education becomes a very important priority right now. Higher education costs will require parents to save and allocate and more in this section.

But with an increase in education costs that can reach 10-15 percent per year then saving alone may not be enough. Therefore you have to find a better way to guarantee your child's educational future. One such way is to invest.

Before investing for children's education, parents should know in advance what the range of funds needed. Also consider the rate of inflation that occurs each year.

Here are some alternative investments you can make to meet your child's education costs:

1. Education insurance 

Protection of children's education will be acquired by insurance education. As a parent and insurance owner, you will feel better, because if there are risks or unexpected events happening to you, then the insurance company will guarantee your child's education without having to pay a premium anymore.

This is in accordance with the contract agreement with the insurance that has been agreed previously. If you do not have this insurance then I suggest that you can immediately have it, because insurance is also influenced by your age and health condition.

Do not hesitate to ask the insurance agent if you have any doubts regarding premiums and needs of your children's education in the future.

You should also take further consideration when there are agents that offer insurance products as well as investment to you. Before you take the product, make sure that the premium value and the investment you spend will be proportional to the results that will be obtained later.

2. Gold investment

Gold has a value that tends to be stable and liquid. Therefore gold became an investment choice by many people since the first. To make gold as your child's educational investment option, there are several things to note:

• Gold is a long-term investment. Therefore you should be sure when your child needs a fee.
• It is advisable to store gold bars with high levels of 99% rather than storing gold in the form of jewelry.
• Before you buy the gold, you must know the price fluctuations.

To invest in gold today does not have to have enough money first. There are companies that provide the program of installment of gold bullion with interest.

3. Property investment

Property investment is a minimal investment risk with the opportunity to gain huge profits. Try to note that property prices always rise from year to year.

An example is the value of land that always tends to rise. So is the case with the price of a house or other building. If you have enough funds, then you can buy the property in cash. Maybe you want to buy a house for investment, if you do not have enough money, you can buy the house by installments as long as it does not disturb your financial plan. Once you have the house, you can rent it to someone else.

As time goes by, with rising investment value, you can resell the house at a price many times over when you first bought it. You can use the money to pay for your child's education when entering a college or school abroad.

4. Education savings

Educational savings are the easiest way to invest for the future of your child's education. This is generally done to pay for routine educational costs, such as buying school supplies, paying monthly fees or paying for a course.

If you compare this education savings as a long term investment then the results are less profitable. This is because the interest given is usually very small only around 2 -3 percent per year. This is certainly not worth the cost of education with a higher increase for each year.

5. Deposit

Deposits have higher interest rates when compared to savings, ranging from 4 to 6 percent annually. But these deposits can not be taken at any time.

Withdrawal of deposits can only be made in accordance with the agreement that has been done, for example within a period of one month, three months or a year or maybe longer. It depends on the agreement that you have with the bank. You are advised to choose an auto rollover program. Why? Because this program will automatically add the interest you earn each month to the deposit funds you have invested.

This will make deposit and interest funds rise on a monthly basis. However, if you are studying on an increase in tuition fees that reach 10 - 15 percent each year, then deposits also can not be used as a choice for long-term education savings.

Thus, you can still make deposits as an investment choice for short-term financing purposes, for example for the payment of tuition fees on an annual basis.


So that's 5 best investment plan for child education that you can choose as a consideration. Financial planner even suggested that you prepare for education fund when your child is still in the womb. So do not delay investing for the future of your child.

Which Is Better Between Education Savings and Insurance?

Which Is Better Between Education Savings and Insurance?

Education Savings  

Education is a really important matter. As parents, preparing the school fees for your children from an early age is a priority that can not be underestimated. The cost of education varies in different countries, and increasing every year. In addition, the selection of high school or college can also affect the quality of the education gained by your child.

However, the cost of education is not the only problem in life that must be faced. There are still many other purposes which is also important in every second of your life. Sometimes when you will use your money to fund your child's school, unexpectedly, you need to spend money also for other needs. Yes, it will not be a problem if you have lots of money, but unfortunately, is not the case with everyone.

So how to to prepare educational funds effectively and efficiently?

This is a very good question. However, before answering the question, for some people, having a child as a student who is educated at the favorite school is also a prestige of its own, right? Whatever the reason, it is clear, every parents still want the best for their children. Education is the future, without the education the world will seem dark. To start the initial anticipation of the needs of education can be done in various ways.

This time we will discuss about education savings and education insurance. As a good parent, of course you have to plan for the future education of your child. Currently there is a lot of financial products offered for your child's education, but the question is whether you know which one should you choose? How do you select the financial products? Ok, let's look it one by one.

Education Savings VS Education Insurance

Talking about the education, of course, common financial products that exist and have been very familiar with you is education savings and education insurance. Education savings, because it comes from the word 'savings', then this product is generally derived from banking institutions. Meanwhile, education insurance, as the name implies, issued by institutions engaged in the field of insurance.

Education insurance is an insurance product which is used for provide funds that can be used for children's education in the future by preparing early. Insurance can be regarded as an alternative (if not exactly equal) education savings which will finance your child's education from kindergarten to the university, it all depends on the type of insurance or savings that you will take.

In general, insurance education is divided into two parts, namely investment and protection. Investments aims to raise funds in connection with the cost of of children education in the future, whereas protection is ideally aim to protect and guarantee children's health costs when things are unexpected happens to them. So which is best? Generally, any financial products will have advantages and disadvantages, therefore it would be very wise if before deciding to use a financial product related to the education fund, you as a parent are expected to carry projections on these two things:

1. The value of children's education by calculating current costs 

Let us take the example of an educational fund for college, assuming the current tuition fees at universities in the United States range from US $ 2.200 - $ 40.519 per year, depending on where your children will continue their education, then by knowing the needs of current funding, you can project the future needs.

2. See the historical data of the average increase in costs per year. 
By knowing the data cost a few years back, then you can predict the percentage of increase in the cost for the education per year.

However, in practice relating to financial products that are offered to the society with the words of 'education', whether it's insurance or savings, it turns out many weaknesses are found.

The weaknesses is the protection and management results funds earned from investments in financial products is relatively small, so it can actually make the parents do not have enough money for their children to get an education.

This is very unfortunate, considering the efforts that have been made by a parent which has earmarked a fund over the years, but ultimately must be paid to the disappointment of the funds generated short of their expectations.

Because funding of education is a something definite, you can predict nominal needed in the future, and you can also specify the time period. Therefore, the most prudent to to prepare children's education fund is to invest in investment instruments.

You can buy financial products such as insurance or savings, according to the nature of its products. The purpose of buying insurance is for protection only (pure insurance), while the savings that you have can be used of short-term goals, and investment aims to achieve higher results with the risks that can be managed in the long term.

By allocating funds separately in accordance with the respective designation, then hopefully in the end you will get the maximum benefit from financial products owned.