WiserAdvisor – Blog

Main Menu

  • Main
  • Financial Advisor Guide
  • Financial Planning
  • Retirement Planning
  • Education Planning
  • Investment Management
  • More
    • Personal Finance
    • Estate Planning
logo
I Want to Take Charge.
HELP ME FIND AND COMPARE TOP VETTED FINANCIAL ADVISORS IN MY AREA.

FINRA/SEC Registered Advisors

  Your Information is Safe and Secure

WiserAdvisor – Blog

  • Main
  • Financial Advisor Guide
  • Financial Planning
  • Retirement Planning
  • Education Planning
  • Investment Management
  • More
    • Personal Finance
    • Estate Planning
Education Planning
Home›Education Planning›7 Ways Education Planning is Important for Your Child’s Future

7 Ways Education Planning is Important for Your Child’s Future

By WiserAdvisor Insights
December 2, 2020
5894
0
Share:
Education Planning

Education is the foundation stone for a child’s future security. However, while every parent wants to provide their children with the best of opportunities, other expenses sometimes take precedence. Sending your child to college in today’s times requires planning, strategizing, and investing in the right kind of funds and instruments. It also needs a well thought of timeline and adequate revision and recalculation along the way. This can only be successful with a farsighted plan in place.

Here are 7 ways in which education planning is important for your child’s future.

1. It lets you provide your child with a good life

As stated above, education is essential in everybody’s life. It can bring bright prospects to your child’s future and offer them a chance to do well and live a financially comfortable life. However, education today is extremely expensive. Most parents begin saving for their children from the day they welcome them into this world. With proper and efficient planning you ensure that your children never compromise with their dreams. Careful preparation and execution allow your children to excel and get the tools that can contribute to their growth.

2. It lets you benefit from the power of compounding

Education planning familiarizes you with the many methods of saving for your child’s education. This could be in a bank savings account, a 529 education plan, or Roth Individual Retirement Account (Roth IRA), among other choices. When you start investing in an account dedicated to your child’s future education expenses, you capitalize on the power of compounding. This helps you build a considerable sum of money over the years without creating a heavy burden on your pocket. You can also have your relatives, grandparents, or spouse contribute to these savings, enabling your child to access the corpus and use it fruitfully when they come of age and need the funds.

3. It allows you to plan other expenses

With an education plan in place, you have a streamlined path to follow. This minimizes the chances of your other life goals coming in the way of your child’s future. If you do not plan your children’s education expenses separately, you may end up using your emergency fund or dip into money set aside for other things, such as buying a house or travelling abroad. This causes frustration and stress for you and deprives your kids of the wonderful opportunities that may lie ahead of them.

4. It reduces the pressure on your children

Without optimal education planning, your child has very limited options to choose from. A college education is costlier than ever right now and in order to get into a college, your child will either need a scholarship, a loan or apply for Free Application for Federal Student Aid (FAFSA). While these options have helped many students fulfill their dreams and ultimately find good jobs, it also creates pressure and anxiety in some. Getting a scholarship or financial assistance can be tricky. There is also no guarantee that your child will qualify for it. Loans too, come with their share of problems. Firstly, the rate of interest on student loans is quite high. Secondly, it can take years for your child to pay off the debt. If they were to lose their job after a few years of working or not find a suitable employment opportunity at all, they would find themselves knee deep in debt with no avenue to pay it off. A lot of students let go of their decision to attend college altogether because of these reasons.

5. It inculcates good financial habits in your child

When you plan and save for your kid’s education, you can simplify and structure your individual financial goals and expenditure. While having an education plan allows you to plan your finances better, it also teaches your children how to prioritize their expenses. Every penny that you save for their future brings in them a sense of responsibility. They value your contribution to their life and education and try to pay it back by working hard and achieving their dreams. They also learn basic principles of savings, investing, and frugality that can help them in their lives at a later stage.

6. It lets you stay ahead of inflation

Inflation can increase the cost of goods and services by leaps and bounds. With a rise in the price of education, it becomes increasingly necessary to not only save money for the future but also to find the means to let your money grow. With the right investment instruments, you can create wealth without hampering with your money’s growth. This does not create a dent in your savings when the time comes to use the accumulated funds to pay for fees or buy your child’s course-related materials and equipment, such as a laptop, books, lab apparatus, etc.

7. It offers direction to your children

Most parents start education planning well before their children decide what they want to study or become in their life. However, having a plan pushes your child to have a goal. When children watch their parents work hard, cut expenses, and save towards their future, they too start putting in extra efforts to study and lead a disciplined life. This can show them a direction and allow them to stay focused on the big picture.

To sum it up

Education planning is crucial and plays a significant role in your child’s life. It also offers you with a road map to align your income and expenditure resourcefully. This leaves no scope for overlapping of expenses, unfulfilled dreams, and financial stress. If you have a child or are expecting one soon, you should start planning for their education expenses early. The sooner you start, the bettercan be your standard of life and your child’s future.

In order to know how to save and invest and make the most of the different kinds of education savings accounts, you can reach out to financial advisors and take their help in picking the most beneficial option.

 

Tags#Roth IRAEducation Planningfinancial planningInflationInvestingKid's Future
Previous Article

7 Ways You Can Adjust Your Financial ...

Next Article

8 Reasons Why Financial Advisors Can Create ...

0
Shares
  • 0
  • +
  • 0
  • 0
  • 0
  • 0
WiserAdvisor Insights

WiserAdvisor Insights

A team of dedicated writers, editors and finance specialists sharing their insights, expertise and industry knowledge to help individuals live their best financial life and reach their personal financial goals. We believe that there is no place for fear in anyone's financial future and that each individual should have easy access to credible financial advice.

Related articles More from author

  • financial documents
    Financial Advisor Guide

    What are the Financial Documents required while meeting your Financial Advisor?

    July 22, 2019
    By WiserAdvisor Insights
  • 401k Rollover
    Retirement Planning

    How to Rollover your 401(k) in 5 Easy Steps

    July 30, 2019
    By WiserAdvisor Insights
  • 401(k)-Plan
    Retirement Planning

    Have 401(k) Contribution Limits Been Increased for 2020?

    January 24, 2020
    By WiserAdvisor Insights
  • 5 Things You Should Know Before Investing in ESG funds
    Financial Planning

    5 Things You Should Know Before Investing in ESG funds

    October 26, 2020
    By WiserAdvisor Insights
  • Executive-Retirement-Plans
    Retirement Planning

    Here’s All You Need to Know About the Supplemental Executive Retirement Plan (SERP)

    October 5, 2019
    By WiserAdvisor Insights
  • Retirement-Assets
    Retirement Planning

    Actionable Strategies to Make Your Retirement Assets Last Longer

    September 10, 2019
    By WiserAdvisor Insights

You might be interested

  • Planning-Wealthy
    Financial Planning

    10 Reasons Why Financial Planning Isn’t Just for the Wealthy

  • Invest-in-US-Corporate
    Investment Management

    Things You Need to Know About US Corporate Bonds to Invest Wisely

  • Long-Term Assets
    Investment Management

    Should COVID-19 Change Your Long-Term Strategy?

Don't miss out! Get our Helpful Financial Tips Newsletter

  • Popular Posts

  • The benefits of working with a financial advisor - WA

    The benefits of working with a Financial Advisor

    By WiserAdvisor Insights
    July 16, 2019
  • Financial-Professional

    How to prepare for a meeting with your Financial Advisor

    By WiserAdvisor Insights
    July 8, 2019
  • Do's & Don't investment portfolio

    The Dos and Don’ts to Protect your Investment Portfolio in a Bear Market Amid The ...

    By WiserAdvisor Insights
    April 22, 2020
  • retirement-accounts

    Choosing the Best Retirement Accounts

    By WiserAdvisor Insights
    July 8, 2019
  • Retirement-Planning

    Retirement Planning checklist

    By WiserAdvisor Insights
    July 8, 2019
  • Why investing for goals is the right way of investing

    Why Investing for goals is the right way of Investing?

    By WiserAdvisor Insights
    July 16, 2019
  • Portfolio diversification

    5 Dangers of Over-Diversifying your Portfolio

    By WiserAdvisor Insights
    July 26, 2019
  • Financial Planning for couple

    The Complete Guide on Financial Planning for Couples

    By WiserAdvisor Insights
    August 1, 2019

Categories

  • Business Finance (2)
  • Education Planning (29)
  • Estate Planning (20)
  • Financial Advisor (1)
  • Financial Advisor Guide (30)
  • Financial Planning (121)
  • Investment Management (65)
  • Personal Finance (10)
  • Portfolio Management (1)
  • Retirement (16)
  • Retirement Healthcare (1)
  • Retirement Planning (79)
  • Retirement Plans (1)
  • Uncategorized (2)

The blog articles on this website are provided for general educational and informational purposes only, and no content included is intended to be used as financial or legal advice.
A professional financial advisor should be consulted prior to making any investment decisions. Each person's financial situation is unique, and your advisor would be able to provide you with the financial information and advice related to your financial situation.

WiserAdvisor is America’s oldest and largest independent network of screened financial advisors. We make it easy and convenient for consumers to find and connect with advisors in their area. We have successfully helped over 100,000+ individuals find their best financial advisor since 1998 with no match fees, no commitments, no obligation, and complete confidentiality. WiserAdvisor has been featured in The Washington Post, The Washington Journal, ABC, CBS, Yahoo and has been seen in numerous other leading financial news and information websites.

Follow Us

  • Recent

  • Popular

  • High Net Worth Wealth Management

    7 Wealth Strategies For High-Net-Worth Individuals In 2023

    By WiserAdvisor Insights
    January 27, 2023
  • Financial New Year's Resolutions

    6 Financial New Year’s Resolutions for 2023

    By WiserAdvisor Insights
    January 11, 2023
  • Future Investment Trends 2023

    Key Trends and Concerns for Investors in 2023

    By WiserAdvisor Insights
    January 9, 2023
  • The benefits of working with a financial advisor - WA

    The benefits of working with a Financial Advisor

    By WiserAdvisor Insights
    July 16, 2019
  • Financial-Professional

    How to prepare for a meeting with your Financial Advisor

    By WiserAdvisor Insights
    July 8, 2019
  • Do's & Don't investment portfolio

    The Dos and Don’ts to Protect your Investment Portfolio in a Bear Market Amid The ...

    By WiserAdvisor Insights
    April 22, 2020

Contact Us

Corporate Headquarters

12150 Monument Drive, Suite 700
Fairfax, VA, 22033

Business Hours

8:30 AM – 5:00 PM EST (Monday – Friday)

Email Address

wa.assistance@wiseradvisor.com

Phone Number

(703) 651-2060

Fax Number

(703) 259-4487

  • Privacy Policy
  • Terms & Conditions
© Copyright 2022 WiserAdvisor.com. All Rights Reserved.