In today’s world, the biggest worry of being a parent is the child education. Rising inflation, household expenses and other social maintenance expenses all make it difficult for parents to think for their child education, as they don’t have the means to sponsor them. This financial strain makes situation difficult to survive both for the parents and children.
Stratification of the Society
There are three classes in which our Pakistani society has been stratified. The rich, the mediocre and the poor. Each class faces its own potential threats and risk associated to that class.
The rich are blessed with everything; they can access whatever they want. This includes high-end education and all luxuries being available to them at their door step.
The Middle Class
Then, the middle-class comes, which tries to maintain their social etiquette as well as try their best to fulfill their child’s wishes. However, there is no guarantee that they will be able to give them a high end education being delivered in top-ranked schools or institutes which is required to grab a good job in the market. Or, they left in the middle and the financial burden comes on the shoulder of the student and he has to bear his expenses on his own and also supporting his parents. In such financial struggle, at times, children leave their education and focus on earning money only. Because of the incomplete education they are hired on petty pay against a marginal job. Yet, they accept it because of the financial management issues at home.
The Poor Class
Then there is poor class, who are unable to have a proper three time meal. They are deprived of the basic necessities of life and for them education is a luxury. As they can’t afford their basic needs first, their survival needs. Then how come they will support their education. If, by any chance they sent their children to the schools; their drop out ratio is very high, considering their poverty situation and other need.
To address the needs of these two classes we have brocken down the phases of the child upbringing so that we can suggest some financial management tips to the parents to ease their burden whilst supporting their education. Besides this, it can also help the students to continue their education and then land on their dream job, which also helps the parent to raise their living standard.
Why Saving is a Bed Rock for Financial Stability
Savings are the bed rock of the financial stability. As it provide the cushion for the future potential risks. Savings enables you to meet the sudden expenses, which are being surfaced due to the uncertainty of the life. To also curb the financial strain, savings again come handy to save us from the burden. However, in Pakistan the culture of saving is not that prevalent. While in the developed countries, this trend has been seen significantly. They value money and urge their generations to save for the hard time. But, in Pakistan, a small percentage of the mass will follow this rule. The majority lives in today and do not save for the rainy days. It is advisable that you save your money from the moment you are given money. Wither in the form of pocket money or when you landed on a job.
Multiple Child Education Saving Plan
If you are a highly salaried class person or a mediocre salary holder, financial management is everyone’s main issue. To keep your bills going you needed a continuous supply of money. Here is a list of child education saving plan, which you can used to cover your child education.
- Child Education Insurance plan, this will help you to fund your children university or college fee against monthly payment for a time period. On maturity of your insurance claim, you will be given a lump-sum amount which you can use to cover the fees, if you went short with the funds.
- Loans– this will give you easy acess to funds on market competitive mark-up rates which will help you to support your child education.
- Investment – you can place your funds in the mutual funds for a certain time span to earn the higher yield on your invested amount.
- Bank saving accounts– you can place your investment in a saving account as well to earn the modest profit as well as access your funds at any point of time.
- Other options include- deposits accounts, savings bonds and pooling your funds in an investment plan.
Additional Reading: Should You Plan to Save or Invest Money in 2018?
Stages of a Child Education
There are different levels of a child education which requires funding from the parents end. These stages are as follows:
a- School Education
b- College Education
c- University Education
Other Stages of Funding to Support Your Children
Even after getting the required education, children still need their parent’s assistance to stand on their feet. In the start of your career, you don’t get the pay on the very first day. To meet the expenses you need help. Here is the other stages list, where you required financial help:
- Early Career
- Mid Career
After steeping in their mid career, the children are stable enough to bear the financial burden of the household and their own self. But to reach at this point, a wise financial management strategy is required.
In a nutshell, saving for child education in Pakistan is a myth for those who never save in their life for the future and a reality for those who always come in handy with. Visit Mawazna.com to compare different financial products and persoanal finance plans and insurance offerings which can help you to support upbringing of your children and their education hence investing into your children’s futures.
“Mawazna Karein Apne Liye, Apno key Liye”