How to Save for Your Children’s Education
Saving for your children’s education may seem like a daunting task to a young mother who does not have much disposable income. However, with some effort and some financial guidance, any young mother can help their children to obtain a higher level education regardless of their current financial status. The key to financial success regardless of level of income is discipline and commitment. As the saying goes, “it’s not about how much you earn, it’s about how much you save.”
Start with a Budget
A budget is one of the greatest financial tools available to help you achieve financial success. It is simply a plan of how
to effectively channel your financial resources. To be effective, a budget should not only focus on expenses, but some emphasis should be placed on income as well. After all, without an income, there won’t be any money available to cover expenses, anyway. A budget will act as a guide for you and should prevent you from unnecessary spending. Ensure that you budget an amount each pay period to put towards your children’s education, regardless of how small that amount may seem. Over time, it will add up and the earlier you start saving, the faster those savings will grow, due to compounding.
Automatic Savings
It may be a good idea to open a bank account, specifically for the purpose of funding your children’s education. Banks usually offer good rates on education savings. Have your employer send funds directly to that bank account or sign up for a standing order with your bank. This way, you save automatically and minimize the chance of spending everything that you earn. Avoid making withdrawals until you have reached your education savings goal. If you remain disciplined and committed, you will be able to save successfully towards your children’s education.