If you have children, chances are you’ve given at least some thought to saving for their Education. In fact, pretty much every new parent I talk to has it near the top of their list of financial priorities.
Maybe you’ve even read a little bit about the benefits of kid’s savings and Education accounts like this one.Maybe you’ve even opened an account and started saving.
If you have, that’s great! You’re giving your children a head start that they’ll definitely appreciate.
Because while saving for college certainly COULD be a good idea, there are also some extremely good reasons to consider using a kid’s savings and Education account.
With an Education Savings Account (ESA), you can invest in the future of a child.
This post will break it all down so that you can make the best decision for you and your family.
- You have extra money you want to invest
A kid’s savings and Education accounts allows you to invest the money, provide your children with opportunities down the line. And one of the big benefits of this plan in particular is that the contribution limits are very high, So if you have a large amount of money that you want to put to good use right away, you can likely do so with a kid’s savings and Education accounts plan.
kid’s savings and Education accounts aren’t as flexible as regular investment accounts, the money has to be used for qualified education expenses. But they are more flexible than you can think.
- You can change the beneficiaries at any time. So if the child you originally opened the account for doesn’t end up needing the money, you could use it for a different child, a grandchild, a niece or nephew, or even yourself.
- You can use the money for secondary school, first degrees and higher advanced degrees like medical school, law school, and other masters and doctorate programs.
- You can use the money for non-traditional education opportunities as well which may be either part-time programs, short-term certification programs or online certification programs.
So while there ARE limitations to how you can use this money, there’s also some flexibility that makes this money valuable in a number of different situations.
3. Family Support
A friend of mine once told me that, from the time his children were born, his sons get cash from relatives. Nothing big, but birthdays and holidays usually come with some cash from the grandparents. His favorite thing to do with that money is to put it straight into their Kid’s savings and Education account. The grandparents love it because they feel good knowing they’re supporting their grandchildren’s education.
Family and friends can even contribute directly to a kid’s savings and Education accounts if they want, so this isn’t limited just to birthday cash and checks.
In other words, you don’t have to contribute yourself in order to make use of a Kid’s savings account or Education account. Simply having one open and available allows friends and family to help as well.
4. It makes you feel good
This one might sound silly, but it shouldn’t be ignored. After all, the real goal of personal finance is to create a life you enjoy. And a big part of that is making sure that your money is always aligned with your personal values.
I’ve talked to plenty of people who simply feel better because they are saving for secondary school. They place a high value on education, a high value on providing opportunities for their children, and this is one way they can express those values financially. And you don’t have to contribute a lot of money to feel good about it. You could be putting a #1000 per month.
Is that amount going to change the world? No. But it is something that your kids could use at some point in their lives.
You could start by getting in touch with us ; +234-818-162-000 or you could just sign up for an account online
Listen to this stream from our radio channel Sweet fm 107.5 to get the requirements for account opening.