From the moment your child is born, all you want to do is give them the best future.
Whether it’s enrolling them into an award-winning school, signing them up to their favourite sport club, or helping them apply for their chosen university degree, supporting your child’s education is one of the best gifts you can give.
However, the cost of both public and private education can be overwhelming for any parent. The combined expense of school fees, textbooks, stationery, uniforms, technology, transport, and extra-curricular activities can all add up, so it’s important for families to be prepared.
To help you get started, we’ve listed two low-risk ways you can save for your child’s education.
1. Create a savings account
Saving money can be challenging at the best of times but, with the right budget and savings account, anything is possible. Start by setting up a savings account with a high interest rate, to help make more money on your assets. Once you have an account, draft a realistic savings goal and create a plan to achieve it. Our Savings and Term Deposits Calculator can help you to work out how much you’d need to save per pay period to reach your goal. Consider setting up automatic direct deposits, so part of your pay goes directly into the savings account each week, fortnight or month. Check out our tips for choosing the right savings account for you.
2. Start a term deposit
An easy way to save money, without the temptation to touch it, is to create a term deposit. Term deposits offer you the flexibility to choose a fixed interest rate, for the time you choose (term) so you can make the most of your money. The interest rate offers are generally higher than your standard saving accounts and the longer the term, the higher the interest rate will be. It’s important to note, once your money is transferred into it, it generally can’t be touched until the term is up without incurring an interest penalty. Term deposits are a great way to save for big ticket items, but if you need quick access to your funds a savings account could be better for you.
If you’re interested in higher-risk investment options, consider consulting a financial advisor.
It’s important to remember the best method for saving for your child’s education is the one that works for your family.
Our Savings and Term Deposit Calculator can help you to work out your savings plan.
Banking products issued by Police & Nurses Limited (BCU Bank) ABN 69 087 651 876 AFSL/Australian Credit Licence 240701. Any advice does not take into account your objectives, financial situation or needs.