Are you financially ready for your child’s education? Do you worry about how you are going to afford expenses if someone gets sick, or pay for family holidays or your child’s 21st/ first car/wedding? Actively planning for a secure financial future is one of the best things you can do for your family.
Research conducted by The Australian Scholarships Group (ASG) on education costs found that for the private school route from Prep to Year 12 it will cost you $413,458 per child. Even if you decide on a government school for primary years and private for secondary, you will still need to come up with $274,958. These figures not only include fees and necessities like books and stationery, but also electronic devices, extra-curricular and transport. Times this amount per child and your left wondering how you will ever come up with these extra expenses when you are already struggling with mortgage repayments, utilities and living expenses.
You don’t want to start saving when the expenses start to hit! Being prepared is the first step. Those who put a plan in place are rarely put out by unexpended expenses. Remove stresses likely to impact your family life and start living secure in the knowledge that you are ready for the future.
The first step as always is to make a budget! Once you know what you’re spending your money on, you’re likely to find areas that you can cut back on or eliminate entirely. This will dictate how much you can afford to put away each week so you can start implementing your savings plan. Make sure you increase this amount each year to account for inflation. Making small sacrifices now will take commitment but will be well worthwhile in your family’s future.
According to moneysmart, for as little as $40 per week added into a savings account at 2%, it will equal $10,940 after 5 years. This could be as simple as setting up a direct debit from your account and deducting a weekly amount into a high interest savings account, possibly set up in each child’s name.
Another step you can take to ensure your family is prepared is investing in adequate insurance. Whether its TPD, Life or Income Insurance, a financial advisor can help tailor to your specific needs to help protect your family now and in the future.
Living for the moment is fun, but the stability of a promising financial future will help you sleep easier at night.
Speaking to a licenced financial advisor will ensure you get the right advice and put you on the correct path to financial security. Get in touch with one of our specialists today at Smart Financial Advisory on 03 9034 4883.