07:25 24 September 2013
Sending your child to the university is no mean feat but this is an event that will not just happen overnight. It will require some kind of financial planning and making major decisions such as which university to go to, the quality of education it offers and its affordability, among others. Parents could find the total cost quite prohibitive and further decisions will have to be made to consider additional source of income, savings and investment to come up with enough money to cover the expenses.
Children have also a lot of preparations to do. This will be their first shot at independence so they might have to make decisions without the benefit of parent advice and once given cannot be immediately reversed or contradicted by their parents. Independence comes with a price which means that any “right” or “wrong” decision will be accredited to them.
Some of these decisions will definitely involve money matters such as budgeting, acquiring student loans, acquiring credit cards, opening a student bank account or moving in with friends to save on rental. Young individuals might find it a bit of a cliché as you tell them spend only on things that you really need and what you can afford, but they still have to hear it. They could be handling funds from student loans or be given the privilege of overdrafts from bank accounts so they need to appreciate that these funds are not for squandering as they will have to be paid back with interest.
Parents can look at every available financial deal and grant for student loans. But nothing beats saving early and saving enough to finance a child’s education because not everybody can fall back on grants and aids and scholarships when it comes to our children’s futures.
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