Mistakes to avoid when planning your child's education. Let's check it out below!
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Education is one of the important things for children. Because education is very influential for a child's future. That's why many parents work hard to ensure their children get the best education. Unfortunately, the cost of education in Indonesia is increasingly expensive. This makes parents have to rack their brains so they can continue to pay for their children's education.
There are still many parents in Indonesia who do not realize how important it is to plan their children's education funds from an early age. Finally, parents are overwhelmed when their child requires quite a large amount of money. In many cases, parents have to borrow money from neighbors, apply for KTA, and sell valuables to finance their children's education. So that these things don't happen to you, avoid the following mistakes in financing your child's education, quoted from www.finansialku.com.
There are still many parents in Indonesia who do not realize how important it is to plan their children's education funds from an early age. Finally, parents are overwhelmed when their child requires quite a large amount of money. In many cases, parents have to borrow money from neighbors, apply for KTA, and sell valuables to finance their children's education. So that these things don't happen to you, avoid the following mistakes in financing your child's education, quoted from www.finansialku.com.
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1. Not planning
The mistake that generally occurs is that many parents do not plan. You could say this is quite a fatal mistake for parents, considering that the cost of education continues to rise. Even though it sounds silly, it would be better if you already had a plan even though your child is not yet school-age. So that when the time comes, you don't need to worry anymore about finding funds to send your child to school.
2. Planning too late
Delays in planning children's education costs usually occur because parents keep delaying. Never compromise on your child's education. If you can do it now, why delay? The more often you delay, the more costs you have to incur.
3. Ignoring Price Increases
Some parents plan their education funds incorrectly because they ignore the factor of increasing education costs. On average, education costs in Indonesia have increased by around 15% – 20% per year. Several schools experience an increase of 10% per semester (equivalent to 21% per year).
The mistake that generally occurs is that many parents do not plan. You could say this is quite a fatal mistake for parents, considering that the cost of education continues to rise. Even though it sounds silly, it would be better if you already had a plan even though your child is not yet school-age. So that when the time comes, you don't need to worry anymore about finding funds to send your child to school.
2. Planning too late
Delays in planning children's education costs usually occur because parents keep delaying. Never compromise on your child's education. If you can do it now, why delay? The more often you delay, the more costs you have to incur.
3. Ignoring Price Increases
Some parents plan their education funds incorrectly because they ignore the factor of increasing education costs. On average, education costs in Indonesia have increased by around 15% – 20% per year. Several schools experience an increase of 10% per semester (equivalent to 21% per year).
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Parents need to be aware of the increase in education costs. This aims to ensure that parents are not overwhelmed if the funds they have to spend are greater than planned.
4. Investing Too Little
It's no secret that it takes a lot of money to send children to college. Therefore, it is natural that you can save or invest more, not the other way around. When carrying out calculations, ideally you should use assumptions that are realistic or tend to be conservative.
5. Investing Without a Plan
You also have to know which products should you save or invest in. How many? When is the time? There are many financial products designed to meet children's educational funding needs, ranging from term education savings (taka), deposits, education insurance, mutual fund investments, and other investment products. In essence, before deciding to invest, make a financial plan first. One financial expert, Robert T. Kiyosaki, said that when investing, don't focus on the product, but on the strategy.
4. Investing Too Little
It's no secret that it takes a lot of money to send children to college. Therefore, it is natural that you can save or invest more, not the other way around. When carrying out calculations, ideally you should use assumptions that are realistic or tend to be conservative.
5. Investing Without a Plan
You also have to know which products should you save or invest in. How many? When is the time? There are many financial products designed to meet children's educational funding needs, ranging from term education savings (taka), deposits, education insurance, mutual fund investments, and other investment products. In essence, before deciding to invest, make a financial plan first. One financial expert, Robert T. Kiyosaki, said that when investing, don't focus on the product, but on the strategy.