Becoming a parent brings with it a lot of responsibilities and financial liabilities. One of the most obvious responsibilities you will have as a parent is to ensure that your child receives the best education possible. But it is common knowledge these days that education is an expensive affair, and that if you want to send your children to the best of schools and colleges, it becomes even more expensive. To reduce the financial burden of your child’s education, starting a child saving plan is a good idea. But when is the right time to start investing in a child plan?
If you ask the experts, they will advice you to begin investing in a child saving plan before your child turns one year old. It is not unusual for a lot of parents to ignore this advice thinking it is way too soon to begin saving and that they have a lot of time at their disposal before their child goes to college. However, they couldn’t be more wrong. There is a reason behind the experts recommending us to start saving early. Most of us do not come from money and survive on a fixed monthly income, which is why we choose to opt for a child plan that lets us save money in the form of small monthly installments.
Well, it takes time to convert small monthly installments into a significant amount that will help your child with their college tuition fees. This is why investing in a child saving plan is considered a long-term investment. The usual age for a child to go to college is 18 to 20. If you start saving money before your child even turns one, it gives you roughly two decades to save enough. Whereas, if you start late, for example, when your child is already in their teens, you will need to put in a lot of funds at once to amass a sufficient amount.
Starting an early child saving plan ensure a secure future for your child, while simultaneously not putting too much of a financial strain on your shoulders. After all, it is also important to think of your financial independence while making sure your child receives a quality education.