12:34 27 March 2013
Saving for children’s educational funds is usually one of the main goals of most parents. We all want our children to have a better shot at having great careers later on in life and making sure that they have the money to go to college is usually the first step.
Parents who need to set up children’s education fund usually pay their mortgage as well. If this is your story, you must focus first on completing your mortgage and your other debts. Saving money for your kids while you’re heavily indebted just doesn’t make any sense.
However, if you’re one of the lucky people who are not paying for mortgage, you can set up an educational trust. This can easily be done through a solicitor or trustee company.
Although you’ll need to pay certain fees to establish and maintain the trust, you’ll get a guarantee that the money you saved will be used for the purpose that you intend.
You may also consider specialist funds that offer educational scholarships. With this, you’ll have to pay a regular amount into the fund and if your child goes to tertiary institution, there is a scholarship payable.
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