Jakarta, CNBC Indonesia – Make no mistake, even if your income is mediocre or equal to the minimum wage for the province where you live, you can still see your child going to college in the future.
Through good financial planning, this one dream will certainly not be wishful thinking. Because actually you still have enough time to make it happen.
However, what is an effective way to collect high-level education costs that are effective with a mediocre salary? Here’s the review.
Find out current tuition expenses
Without knowing how much the total expenditure must be paid for the education of higher education children, you will never know how much funds should be allocated to savings or investment instruments.
It’s a good idea to find out by asking directly to the university concerned or to relatives.
Know that, the cost of education will increase or inflation. You also have to make calculations from the inflation assumptions that you specify.
Set the investment timeframe
If your child is 10 years old now, then chances are that in seven or eight years you should have enough money to send them to college. Therefore, you have seven to eight years of savings.
By knowing the investment or saving period, you can determine which investment instrument to use.
The longer the investment period, the more flexible the instrument choices are. Meanwhile, the shorter the timeframe, the more advisable it is for you to choose low-risk instruments.
Hand in hand to collect tuition fees
If you feel that your monthly salary is not enough, remember that you are not alone in this. Invite your partner to help you collect the cost of children’s education.
Routinely save and invest, set aside money in savings or special investment instruments at least once a month.
The more funds you set aside for your child’s education, the faster the funds you need will be collected.
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