looking to pay for first year school
costs or are you saving to be able to
pay for your child’s full 4 year univer-
sity program? How much will costs
have gone up by the time your child is
ready to go to university?
If you are saving over a short
period of time and/or you are not
comfortable with taking investment
risk, consider using a cash savings
option. Although, make sure you
compare and look around for com-
petitive interest rates. Alternatively, if
your timeline is much longer, stocks
are likely to give you a better return
than cash over the long term and more
importantly, give you a fighting chance
to keep pace with rising school fees.
Sometimes the dream of paying
for your child’s education is just not
within your reach. Or maybe, like
myself, you want your child to pay for
part of their own education to learn
how to stand on their own feet and
become independent. Regardless of
your personal preference, there are
things you can do to help you be suc-
cessful in achieving your goal of pro-
viding your child with the opportunity
to pursue gaining a higher education.
Here are some ways to consider
saving for your child’s education and
tips to help in alternative ways:
•
Motivate them in high school.
Work hard to encourage them to
keep them motivated during high
school. The better grades they
have, the more likely they will be
eligible to receive scholarships.
Not only are grades important,
but try to encourage them to
participate in extracurricular acti-
vates to increases their chances of
getting scholarships.
• Help them apply for scholarships.
When the time comes encour-
age and help them to apply for
scholarships.
• Encourage them to work through
high school. As soon as they are
able to get a job, encourage them
to do so. Have a discussion about
what percentage of each paycheck
should be put toward their educa-
tion fund.
• Use the mobile allowance app,
‘Roostermoney’ which provides
a fun way to encourage your kids
to spend, save and give appropri-
ately. Roostermoney is great way
to develop financial discipline
and help your child to under-
stand the value of money and that
all of their money should not be
spent immediately.
• Split any gift money or allowance
your child receives. Putting aside
a small percentage of your child’s
gift money or allowance towards
an education fund over time can
add up. Maybe work out a system
and agree with your child that
half of any money received on
the holidays, birthdays, etc. goes
towards their education fund.
•
•
•
Open a BF&M education savings
account. Instead of giving toys or
clothes for birthdays, holidays or
other occasions, this is an easy
way for you, your family (and
friends) to make a gift. Which can
make a more lasting impact on a
child’s life.
Put unexpected money in
savings. Apply any bonuses or
unexpected money toward a
dedicated education savings
account. One easy way to put
money toward your children’s
education savings is to use your
end-of-year bonus, since it does
not interfere with your budget.
Parental Matching. Similar to
our pension plans in Bermuda,
as parents we can encourage our
children to save with an incen-
tive to match whatever funds our
child is able to set aside towards
their education plan. It has the
benefit of your child being able
to watch their savings grow much
more quickly than if they didn’t
have you making matching
contributions.
Jason Cook CFP®, RICP® is Vice President,
Investments at BF&M. For more infor-
mation on BF&M’s financial planning
approach and services, contact Jason at
[email protected] or call 295 5566.
Keep Your
Irreplaceable Cargo
Safe...Your Family!
QTS delivers Tires and
Batteries Island Wide
to any Garage and
most Marine Outlets
We carry famous name
brands such as,
Falken Tires
Kumho Truck Tires
Accelera Tires
Sobek Motor Cycle Tires
We are the Interstate Battery
distributor on the Island
Expedient, Professional
Service and
Affordable Prices!
17 AB, 5 Waller’s Point Road
St. George’s DD 03
441-297-4787
Give us a call or stop by today!!
mybermudaparent.com
19