Don't Burden Your Children With Education Debt

Education fee has never stop increasing year after year. Parents are struggling to save some money and finding ways to fund their kids in their college or university. But it takes how long to save and can we cope up with inflation each year ? One of the easiest way is to get loan from private financial institution or applying government education financing scheme.When you talk about loan or financing , it is not a FREE stuff, it comes with interest rate and loan amount need to be paid back within certain time frame depending on the terms and conditions.

Can you imagine that your children after graduating will have this debt on their shoulder ? Are we not always teaching our kids not getting into debt but now most parents are putting debt onto their children by giving excuse that "we have no choice". Most of the graduates will not getting high salary when they first stepping into job market, they will have to take care of their day to day basic needs with the salary earned like food, lodging, support surviving parents, transportation, phone bill, car loan...etc. The monthly income is almost used up and how can they efficiently serving the study loan. This is one of the reason resulting a huge unpaid education loan in our country.

These graduates try to be disciplined and being responsible to pay the loan but due to the constrain in distributing their income, they have to make a choice to continue serving the loan or on hold temporary.
Can we parent do something to prevent this? Or we parent are being too selfish passing the burden to your children ?

Below are the commonly ways people raising fund.
1) Saving a portion of your income. ( Provided you are discipline enough )
2) Invest your money in share market or unit trust fund.
3) Start your own business.
4) Waiting for promotion or raise in salary
5) Working part time job to generate second income
6) Getting loan.

Above are the basic ways but will this bring good returns? What is the risk involved ? Do I have the experience ? Will I be healthy and safe all the time ? We can't predict accurately.

In your Financial Planning, never forget that Life Insurance playing a very important role, whether you like it or not you can't exclude it. In this case, Education policy is very important because it will secure your children education fund at the age of 18 to 25. You can withdraw during this time or upon maturity. You can use this fund to further you children education without getting any loan or you may use it to serving the loan later, it is all up to you. The most important thing is your children will not be burdened by the study loan anymore.

Education policy come with many other good benefits as this policy is one of the insurance products in the market. Some of the insurance policy will come with the feature if the payor of this policy diagnosed with critical illness, death and total permanent disability, this policy will still keep in force till maturity without paying any premium, it's all covered by the policy.

Plan today while your children are young unless you have better funding way. Do not let your children to be sued by the financial institution one day. Spend a little of your time to learn that this little thing can really give you "Peace of Mind ".