Welcoming a baby can be overwhelming for new parents. Along with the joy and excitement, comes the responsibility to feed, clothe, care for and educate your little bundle of joy – for the next 20 years.
Your child’s near-term needs, such as milk, diapers, toys, outfits, medical appointments, insurance and many other things cannot be avoided. At the same time, you do not want to neglect planning for his/her needs in the long term, such as a university education – which can help with securing a fulfilling career.
At first glance, the cost of your child’s university education may seem daunting, costing up to $50,000 in local universities, and climbing to close to $100,000 or more for foreign universities. Furthermore, this cost doesn’t account for inflation and you don’t have to be a time-traveller to know that the cost of a university education will be significantly higher by the time your child grows up.
It’s not all doom and gloom. The good thing is that you have close to two decades to plan for it at the birth of your child – so start early. A good plan will ensure you are able to not just save your money over 20 years, but use the time to grow your money and take advantage of compounding returns.
Here are three ways you can grow your savings for your child’s university fees.