Like anyone else I’m making the assumption that you want your children and grandchildren to have the best education possible. However, school and university fees can really add up. Educational costs are often one of the largest household expenses.
It is projected that from preschool to a child’s final year of school, parents will have to pay approximately $60,000 plus for a public school and up to $400,000 for a private school education. Helping your family to start saving early will give your grandchildren the best possible chance to a high-quality learning experience.
So how do you go about supporting your grandchildren to get a quality education? There are several options when it comes to investing in education for your grandchildren’s future: shares, managed funds, term deposits, savings accounts, education funds and investment bonds.
However, there are things you need to consider before investing:
- Fees – What fees will you be charged?
- Contributions – How much do you need to invest and how often do you need to contribute? Can I contribute as a grandparent?
- Investment options – What investment options are available, and do the suggested timeframes for these options meet the timing of your children’s education needs?
- Fund purchases – What can you use the savings for, for example can you use them for primary, high school or tertiary studies? Do they cover expenses such as clothing, laptops and excursions?
- Access to funds – What criteria need to be met before you can access your funds?
- Ownership of investment – Who’s name the investment should be in for tax purposes and investment control?
You should compare the features of each investment option. In particular compare: product fees, features and benefits and how the different investments are taxed. Contact us for more information.