To Do List In Child Education Planning

By Author: omega
Total Articles: 7
Comment this article

Your Child might be dreaming about launching a Rocket, so it’s best that you start buying at least the parts! We never know what our Child aspires to become in the future but whatever it maybe, our sole duty and responsibility as a parent is, to provide moral and financial support.
In Dubai, at least 50% of the income goes into spending or saving for our Children’s Education which leaves us with the question of not debating whether Child Education Planning is important or not but, when is the right time to start.

When do I need to plan for my Child’s Education?
Parenting is not as easy as it sounds. Right from the birth till marriage, every penny comes under the responsibility of parents and the unfortunate fact is that,the cost of education will keep on escalating up but never down. The answer therefore is, right away.

 Benefits of starting early
Starting early is the key to assuring your Child’s dream. Inflation easily rises by 10% -13% in Dubai every year making it totally necessary to save as early as possible.
“Earlier you start saving, the more time ...
... you get to plan your Money”.

 Give time for other Commitments
Child’s Education planning is very important but once your son/ daughter completes learning and gets married, you might have reached 50’s and by then you should be able to manage without consistent inflow of money as you would near your retirement period. Giving enough time to plan your Wealth for Retirement is very important because life is once and what is the point if you don’t get to enjoy it peacefully in your last years?

 Vision it out
Every parent might want their Child to become a Doctor or Engineer but today’s kids have the craziest ideas. This Gen Z Children are tech savvy and play a huge role in deciding the Market. These Children know what they want and how to get things done exactly. So, it is certainly not fair to force your dream upon your kids. The next wise thing to do is, start supporting financially and motivate them.

It is not only sufficient to plan your Child’s Education early. Knowing HOW to, will help you achieve it. There are two phases when it comes to Education planning.

Draft initiation and Execution

1.Draft Initiation
To start anything in life, the first step is to craft a fair sketch to help you answer what, why, where, when and how to get it done.

When?
The one word answer is, NOW. As soon as your kid is born, it is advisable to start planning your Wealth. As discussed, inflation proliferates every year and when you postpone planning, you not only risk the potential danger of not saving enough money but your Child’s dream as a whole might be at stake.

How much should I invest?
This depends entirely on you alone. Education cost as we said, only keeps on escalating in Dubai. A basic planning of how much you want finally maybe 10-15 years down the line will provide a clear vision as to how to plan your budget. Again, factors like inflation and Compounding has to be kept in mind while allocating the money.

What plans to choose?

Once you have decided to plan your Children’s education and is definite about the investment figures, the next step should be choosing the right plan. While choosing the plan, make sure to keep this checklist in mind.

How much money to set aside?
Will the premium I yield be affordable?
Does my policy offer flexibility?

To know more about the policies we offer at Omega, please click here.

Once this Draft has been initiated, the final step is Execution.

2.Execution
Pages and pages of Draft and planning will go as a waste of time and effort if not properly executed. To make sure you are executing everything as planned, there are three things which will help you realize if you are headed towards the right direction or not.

Consistent Savings
“Execution is vital but Consistency is the key element”
Investing a certain amount on January and not contributing anything for three months together and then getting back, will distract your flow of money and moreover you will not be able to track and follow up. You would be saving as and when you get an inflow and at other times, there won’t be any savings at all.

Yearly Performance Review
Tracking down and following up on a regular basis is very essential because it has proved time and again that,
“Proper Planning is the only route to Success”
Checking the yearly progress and balance will give you an overall picture of where you stand, where to go, what to do and what not to do.

The main Don’t

After you start executing, the main No you should learn to tell yourself is, “Withdrawal of Money for other purposes”.
I have to buy a new home or take care of my spouse’s medical expenses, so can I extract some money from my Child’s account for the time being and deposit it later? This is where everything can go terribly wrong. Once you start saving for your Child’s Education, make sure you don’t touch it for any other requirements until you achieve your goal.

“For, there is no shortcut to Planning and when it comes to your Child’s dream, make no compromises whatsoever”