Friday, July 5, 2013

Investment Options For Children's Education

Many of us come from a background where our parents didn't set money aside for our education. Putting money aside for children's future education costs wasn’t the norm and often a luxury many people could not afford besides education wasn't half as expensive as it is today. Many wave it off and say “God will provide…” and surely He will. The need for access to higher education is an obvious one. With the increasing costs of college and university, many parents are looking for smart ways to save for their children's education. So, I have done some investigating and found ways many young couples, no matter your income can put some money aside for this cause.

1. Education Policy
Buy children education policy from a good insurance company with good partial maturity plans that can help you have access to fund without touching your normal income to continue their schooling and total maturity when they eventually gain university admission.

(For at least five years) buy and hold like 3 or 4 presently undervalued stocks on the stock exchange in food/beverages, banking, or petroleum sectors. Make sure such company has good dividends/bonus track record and they are fully multinational in nature and as old as 30 years.

3. Land
(Hold it for 10 years at least) buy plots of land, fully document it, lease it out to farmers, or build on it depending on  what you can afford. Buy it in your children's name if u please. This could take as much as 60% of the funds and its very ok.

Depending on your environment and personality/discipline, this is a sure banker family investment, its safe and more liquid than land or property if well invested. Yes it often appreciate, but due to recent global crisis, it has its ups and downs now, which means greater risk as well as reward opportunities. Note: never speculate on gold jewelry for less than 3 years

5.Federal Government Bonds/Treasury Bills
(If u have the sophistication and stamina) this is very good and can even be equated to rent on property, it is.

6. Your Children's Knowledge/Handiwork
This is the greatest investment ever. Don't wait until they are 18 and above before they are forced to learn about work, skills, budgeting, cash incentives, discrimination, salary etc. The earlier the better. Expose them 9-to-5 even if its part time or informal arrangement. Let them work to earn, and be closely observed on how they freely spend the money. Theres nothing wrong having your 14 year old working as sales apprentice, office clerk, sunday school teacher, church staff or instrumentalist etc. So long as its well arranged not to interfere with schooling. The richest men in the world were mostly exposed to work ethics even as kids(you may google this). If all investments are eroded, man must fall back to his skills/handwork. Expose your children to books, and not just any books, self improvement books. In fact, a family library is more important than a car. Knowledge and experience is very important investment that cannot depreciate.

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