Mothers day Series; Saving for your child’s education

Welcome to the second blog of the mothers day series, in this series I will focus on relevant financial topics related to a growing family. In this second blog I will discuss the cost of eductation and how to prepare for it.

As the cost of education continues to rise, it's becoming increasingly important for parents to start saving for their child's education as early as possible. In New Zealand, there are a number of education savings accounts available, each with its own advantages and disadvantages. Here, we'll take a closer look at some of the most popular education savings accounts in New Zealand and how to determine which one is best for your family.

One popular option for education savings in New Zealand is the KiwiSaver scheme. This is a voluntary savings scheme that allows New Zealanders to save for their retirement or first home, but it can also be used to save for a child's education. Contributions to KiwiSaver are matched by the government up to a certain amount, making it an attractive option for parents looking to maximize their savings.

Another popular education savings option in New Zealand is a managed fund. These funds invest in a range of assets, such as shares and bonds, and can provide higher returns than traditional savings accounts. However, they do come with a higher level of risk, so it's important to do your research and choose a reputable fund manager.

For parents who want to take a more hands-on approach to their child's education savings, a term deposit may be a good option. These accounts offer a fixed interest rate over a set period of time and are a low-risk option for parents who want to ensure that their savings are protected.

Ultimately, the best education savings account for your family will depend on your individual circumstances and goals. It's important to consider factors such as the level of risk you're comfortable with, your time horizon, and your overall financial situation when making your decision. With the right education savings account in place, you can help ensure that your child has the financial resources they need to pursue their dreams and achieve their goals.

As a financial planner, I will work with you to define your families financial needs and goals and together we will define the most effective strategy to get there.

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