Saving for your Child's Education
 Educating a child can be one of the biggest investments a family will make next to the mortgage, yet many parents are simply unaware of – and unprepared for – the sheer scope of expenses involved, according to research from the Commonwealth Bank. We all want to ensure that our children have the best start in life and a little early planning can help to ease the financial burden later on.
Education is a big Investment
The Australia Institute has suggested that the average cost of privately educating a child through primary and secondary school is $270,000. However, according to the Commonwealth Bank’s research, the average cost Australian parents expect to pay to privately educate a child through primary and secondary school is $152,000 – more than $100,000 short of the mark.
The research also revealed that the majority of parents also want to see their children go through TAFE or university and almost 80% of those intend to fund part or all of the cost.
With this in mind, some early financial planning will help you to better manage the inevitable expense – especially if you intend to privately educate your child. One way to kick-start saving for your child’s future could be to invest your Maternity Payment lump sum into a dedicated education savings product, such as the Commonwealth Bank’s Education Savings Plan.
Consider a dedicated savings plan
The Davoods decided to invest in a Commonwealth Bank Education Savings Plan for each of their twin daughters, Celine and Monique, just three days after they were born.
“I was shocked at the year-on-year cumulative cost,” said Mr Davood. “I would have expected that any school would increase their fees in line with normal salary increases, but it’s just not the case. It turns out increases in school fees are more than double the amount of most salary increases!”
The Davoods believe that by taking out an Education Savings Plan they will be more equipped to cope with the expenses and provide both girls with the best possible opportunities. “We feel a bit more secure about their future as the product will increase the amount of money that we’ll have available for their education.”
How can an Education Savings Plan help you?
Here are just a few reasons why an Education Savings Plan from the Commonwealth Bank could be a good option for you:
* The Education Savings Plan operates as a ‘scholarship fund’, which means that when a withdrawal is made for eligible education expenses, a special tax benefit may be gained.
* It is simple to use, accessible and flexible, with benefits that set it apart from other similar savings and investment products.
* You can add to, or withdraw from, your Education Savings Plan account at any time – although withdrawals for purposes other than education expenses do not qualify for the Education Tax Benefit.
* Anyone over the age of 16 can start up a Plan – parents, grandparents, aunts, uncles etc. – and anyone can make contributions.
To find about more about the Education Savings Plan from Commonwealth Bank Click Here, or visit your nearest Commonwealth Bank branch to collect a Product Disclosure Statement, or call Lifeplan on 1800 888 411. |