Saving for Your Kids Future

Date posted: Nov. 1, 2016
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Every year, post-secondary students graduate tens of thousands of dollars in debt. While many colleges and universities provide financial aid and scholarships, student debt continues to climb. Many young people wind up having to borrow money to finance their education and living expenses due to rising tuition costs and a difficult Canadian job market. Consider the following strategies for starting a savings plan that will benefit your child.

Start Early

It’s never too early to start saving for your child’s education. It can certainly be difficult to prioritize post-secondary savings when you’re covering other expenses associated with young children or have a payday to pay off. Still, the earlier parents start saving the sooner they’re able to fund their child’s education. Putting away as little as $50 a month from the time a child is born could mean as much as $20,000 in savings by their seventeen birthday, according to finaid.com

Save Wisely

Of course, the key to saving for your child’s education is saving. We suggest setting goals to help remain motivated and on track. No matter how much money you’re able to put away month to month, it’s important to create a game plan and stick to it. Make an effort to reach your goals by cutting out unnecessary expenses like morning to-go coffee. Small everyday expenses add up over time and avoiding them can help you stay on track.

Get Your Child Involved

Talking to your child about the value (financial and otherwise) of post-secondary education benefits everyone. Motivate your child to work hard during high school by letting them know that good grades mean eligibility for scholarships. Ask them to take on a part time job in high school. Not only does working part time contribute to tuition funds, it’s a great way for young people to learn valuable financial awareness skills.

Get Your Own Finances in Order

In the event of an emergency, airline safety procedure asks that parents secure their own oxygen masks before assisting a child. The same principle applies to financing your child’s education. Parents should prioritize their own finances to ensure they’re in a position to save on behalf of their child. Families with mortgages, credit card bills, payday loans, and even student debt of their own should consider consolidating debt into one convenient payment program. With lower interest rates than payday loans, the debt consolidation loans we offer at Easy Financial help Canadians get out of debt sooner.

Remain Positive

Saving for children’s education can be stressful for low income families, especially those burdened with bad credit or debt. Remember that although it may be difficult, it’s far from impossible. Parents with proactive savings plans will be better prepared to finance their children’s tuition and put away fast cash for last minute expense like textbooks and computer repairs.

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