7 Strategies for Preparing Children's Education Funds Up to the Graduate Level

 January 26,2023

Source:media ansuransi

Every parent will definitely provide the best future for their children.What's more, every day things are getting more expensive. Choosing a time to prepare funds earlier is much better, choosing to save little by little the longer it will continue to grow.

 Have a plan to provide the best education for children to college? You need to prepare an education fund for your little one from now on. To make it happen, here are 7 strategies that you can practice.

READ MORE:"Understanding the Fundamentals of Finance: From Personal Finance to Financial Markets and Management"

 For parents, children's education is an important need that must come first. Therefore, you need to prepare a child's education fund in advance for their future. It's just that, not all parents have the right understanding regarding how to prepare these funds.

 How much is the Children's Education Fund?

 Before implementing a strategy regarding efforts to prepare educational funding sources for children, you first need to know the amount. You can do the cost calculation by first considering the school you choose. In addition, also consider the increase in the cost of education every year. Furthermore, you can use various free online financial calculators to calculate the amount of the child's education costs. There, you can enter various required parameters, and the calculation results will appear automatically.

 Strategy to Prepare Children's Education Fund

 From the calculation of the financial calculator, you have obtained the nominal education funds that need to be prepared. Then, what is the right strategy to make it happen?

 There are several efforts that you can run, namely:

1.Conventional Savings

 The first strategy is to use conventional savings. The existence of savings has a function in securing assets. By saving money in savings, you can avoid using these funds for other purposes.

 You can start saving by setting aside some money regularly. In this way, you will get a sizable amount of savings in the long run. You can also adjust the amount of money set aside each month with the target education fund that needs to be collected.

2.Education Savings

 Not only conventional savings, you can also use banking products called education savings. Unlike conventional savings, education savings are a type of term savings. You can also adjust the period of use of savings according to your needs.

 In addition to providing flexibility in terms of saving, education savings offer fixed interest. You will also get additional facilities in the form of life insurance protection. Equally important, the education fund disbursement process is relatively easy and guaranteed by the Deposit Insurance Agency (LPS).

3.Education Insurance

 Equally labeled education, you can find a product called educational insurance. Compared to education savings, education insurance offers a higher return.

 In addition, insurance can help you be more disciplined in the process of setting aside monthly funds. It's just that, you also need to pay attention to the amount of administrative fees that need to be paid.

4.Mutual Fund Investment

 The next strategy is to utilize mutual fund investment instruments. Currently, you can find many platforms that provide mutual fund investment services online. All you have to do is hand over some funds and they will manage them according to the type of mutual fund you choose.

 In practice, you can find several types of mutual fund products such as balanced mutual funds, stock mutual funds, money market mutual funds, and fixed income mutual funds. You can find out the advantages and disadvantages of each type of mutual fund product.

 The interesting thing is, you can do mutual funds with funds that are not too large. In addition, the cost of investing in mutual funds is quite minimal and does not include tax objects. In addition, mutual funds offer an easy process of disbursing funds.


 Like education savings, deposits are a type of investment in the form of term savings. Therefore, deposit withdrawals can only be made according to a predetermined maturity. In addition, deposits have a higher interest percentage than conventional savings.

6.Gold investment

 You can also choose to invest in gold. The advantage of investing in gold is that its value tends to increase. Therefore, gold is the right consideration when you want to achieve long-term financial goals such as financial aid for children's education.

 When choosing to invest in gold, you can prioritize your choice of precious gold products. Compared to gold jewelry, the selling value of precious gold is relatively higher. In addition, you don't need to pay for the cost of making it. In addition, you can do the gold melting process practically and quickly.


 The final strategy that you can choose as an effort to prepare a child's education fund is property investment. Compared to other investments, you need to prepare large amounts of funds to buy property. However, you will also benefit handsomely from selling them in the future.

 Property is an asset that continues to increase in price over the years. Its value will increase sharply when it is in a strategic location. It's just that, you will need a long time to sell it.



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