Establishing An Education Account For Your Child

Paying for your kid's education will most likely become the largest expense you commit to when raising your child, particularly given the majority of young people who choose to complete a college education. These days it's almost mandatory to attend if they want to a successful career isn't it? Having said that, when we say Education, we don't just mean college or 'traditional education', we also mean learning from other experts in business, finance and life skills (personal development).

In order to establish a great foundation for your child, open up an Education Account (and while you are at it, open up a Wealth Account and a Savings Account. These accounts will be discussed in more detail in another article) and regularly deposit money into it. This will avoid your child having to pay a large debt at the end of their education. Even depositing as little as $5 a week can make a substantial difference to the amount of education debt that may otherwise be incurred. It's all about having your money working harder for you and taking advantage of compound interest - you don't need tons of money to create great results as long as you start early.

Even if depositing $5 a week seems to be too large a stretch for your family budget right now, consider depositing some of the money given by family members and friends for your children's birthday or Christmas presents. Providing your child with the gift of having a debt free education can far outweigh the pleasure of a new toy or gadget that only lasts a short while. Wouldn't you agree?

As this account won't be used for a number of years (assuming you are starting this account when your child is young), consider investing the capital into investments which provide both income and capital growth. Before doing this however, consult with a financial planner or someone who is experienced in investments so they can advise on what is the right investment for you.

Once your child starts earning their own income, teach them that a percentage of it should be deposited into this Education Account every time they are paid. Your child will then be miles ahead with their financial IQ and enjoy the freedom of having little or no debt at the end of their formal education. This process also teaches them the habit of investing in themselves through lifelong learning and empowers them with the knowledge they require to reach their full potential!

About the Author:
Ways for kids to earn money is the most recent project for international author and speaker Nicole Clemow. In her search to find new ways for kids to earn money, she has written a ground breaking new book. Check it out here at http://www.waysforkidstoearnmoney.org for your free chapter and other bonuses.

Article Originally Published On: http://www.articlesnatch.com

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