Why save for your child's future?

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If you're like most parents, you want your child to go to college. At the same time, paying for college is probably one of your biggest financial concerns.

By starting a savings plan early, even before your child begins primary school, you can reduce the burden of taking on high debt to pay for his or her higher education.

Don't think you can do that? Here are some of the more common reasons parents don't save for college. But options are available.

1. "I don't have any money to save"

Too often this is true. If you live paycheck to paycheck, you may not have any money to save toward future college expenses.

But take a closer look at your expenses. You may be able to "find" money to save just by adjusting some priorities.

Sometimes you just need to make savings a priority and come up with a plan. Can you think of some changes your family could make?

2. "I don't know where to invest money for college"

If you have questions about investing, I'm here to help. You have 2 options:

·     Traditional savings accounts — Available through banks and credit unions, these accounts are easy to set up and manage.

·     Unit Trust — These types of investments can be arranged through financial service providers.

3. "My child will get scholarships, so I don't need to save for college"

Hopefully, your child will receive many scholarship (JPN, Mara or PTPTN) offers to attend college. But the reality is that scholarships seldom cover the entire cost. In fact, over 99% of college students end up paying for some of their college costs.

Even if your child gets a full-tuition scholarship, he or she will still face expenses such as room and board, books and supplies, transportation, and personal needs. Student aid programs can help, but often there remains a "gap" that the family is responsible for, so be prepared.

So when it comes to saving for college, keep these things in mind:

·    It is better to have money in the bank than to NOT have money in the bank.

·    It is better to save than it is to borrow.

·    In most cases, your savings will not impact your child's eligibility for student aid.

·    In all likelihood, you WILL have to pay some of the costs of your child's education.

In short, saving for college can help ease your mind when it comes to paying for your child's education. How to save money for kids education? Please feel free to contact me for more info.

Delay is costly. It pays for more to start early.