Saving money for education
You’ll face many expenses when your child is growing up, but education is likely to be one of the biggest. Here are a few tips to help you save for your child’s education.
- Work out a budget: Will you be sending your child to a private or public school? Make sure you research the school’s website or course handbook carefully so that you fully understand all the costs involved. Private schools vary greatly in the fees that they charge.
- Factor in other expenses: It’s also important to add in other expenses such as stationery, uniforms, computers, sporting equipment, excursions and camps.
- Use a savings and budget planner: Develop a savings plan that covers all possible expenses, making sure that you allow for inflation and price rises.
- Start saving early: Set up an account for your child that’s only for education. There are lots of savings accounts on the market that offer bonus interest if you make a deposit and no withdrawals each month.
Saving and payment options
Your child may be eligible for HELP during their studies. This is a government loan for tertiary students that defers payment of university fees. You’ll still need to cover costs for things like books, materials and transport. For more information about university fees, visit www.goingtouni.gov.au/.
Many financial institutions also offer student loans. A student loan is a personal loan designed to assist tertiary students with their financial needs. The loan terms vary but are usually between 12 months and seven years, depending on the financial institution. Interest rates and loan conditions can also vary between different credit providers, so it’s definitely worth comparing loans.
A qualified financial adviser can help you identify your goals and develop a clear financial plan. For more information about the ins and outs of financial advice, visit www.moneysmart.gov.au/investing/financial-advice
Share your experiences
Have you recently become a parent? Let us know about what worked for you financially – we’d love to hear from you.